Magnolia Petroleum plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to report an update on its activities in proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime in Oklahoma.
Update on the Roger Swartz Well
The Company is pleased to announce that, following the drilling and testing in December 2012 of the Magnolia operated Roger Swartz #1 well targeting the Mississippi Lime, all the production equipment has now arrived on site. With the cessation of some recent inclement weather, the completion rig is scheduled for next week with fracture stimulation to occur shortly thereafter. The Company will make a further announcement as soon as results are available.
Existing Well Updates
The Company has been informed by the relevant operators of a change in status in the following wells in which it participates:
- BB Rice#2 well that is undergoing fracture stimulation in Bakken formation, Magnolia has 0.0878925 NRI %, and the well operated by Hess Corporation.
- BB Rice#3 well that is undergoing fracture stimulation in Three Forks formation where Magnolia has 0.0878925 NRI %, and it operated by Hess Corporation.
- Mack 10-27-17 1H well is commencing fracture stimulation this week in Mississippi Lime formation, Magnolia has 0.504985 NRI %, and it operated by Chesapeake Energy.
- Peck 1-5H well is completed in Mississippi Lime formation, Magnolia has 0.502 NRI %, and it operated by Range Resources.
- Forrest 1-8H well is drilled undergoing completion in Woodford formation, Magnolia has 0.5859 NRI %, and it operated Continental Resources.
- 1H-18 (renamed Joann 1H-18) well is expected to sup within 30 days, Magnolia has 0.44485 NRI %, and it operated Newfield Exploration.
- Helgeson 41-30H well that drilled undergoing completion in Bakken formation, Magnolia has
4.071 NRI %, and it operated by Marathon Oil.
- Paul (renamed Nighswonger) 2815 1-13H well that is waiting to supd in Mississippi Lime formation, where Magnolia has 2.24187 NRI %, and it operated by Slawson Exploration.
Participating in the following new well
Chalfant 1-7H, horizontal well targeting the Woodford Formation, Oklahoma (Magnolia working interest (WI)/ net revenue interest (NRI) 0.31507%/ 0.2363074%) operated by Continental Resources. Total drill costs are estimated at US$8,221,500 with the Company's share totalling US$19,428.
Rita Whittington, COO of Magnolia, said, “With 18 wells currently undergoing drilling, completing or fracture stimulation operations, including our own 100% owned Roger Swartz vertical well, we anticipate a further increase in revenues and reserves as these wells are brought into production. Combined with an additional 14 wells waiting to spud and multiple well proposals being received on our leases, we remain on course to build a significant oil and gas company focused on proven US onshore formations, and in the process generate substantial value for shareholders.”
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