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Final Results for the year to 31 December 2014
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, has announced final results for the year ended 31 December 2014.
Highlights:
* 25% increase in number of wells on Magnolia’s leases in proven US onshore
formations to 186 as at 31 December 2014 (2013: 149) – 176 producing and 10
drilling/completing
* 58% increase in full year revenues to US$3,851,905 (2013: US$2,443,244)
* Additional US$1,331,941 received for providing consulting services to an
international company acquiring an oil and gas project in Oklahoma and
following the sale of non- core assets
* Total FY 2014 income of US$5,187,316
* 212% increase in full year adjusted EBITDA of US$2,596,658 (2013:
US$833,223)
* Daily production of 281 boepd as at 1 January 2015 compared to 257 boepd as
at 1 July 2014 due to a number of wells commencing production in which
Magnolia has larger interests – Parmley 1-1WH (12.187%)
* 37% increase in total net 1P oil and condensate reserves to 985 Mbbl of oil
as at 1 January 2015 compared to 719 Mbbl as at 1 July 2014
* 39% increase in total net 1P gas reserves to 2,905 MMcf gas as at 1 January
2015 compared to 2,093 MMcf as at 1 July 2014
* US$26.653 million value of proven reserves as at 1 January 2015 at
the then oil price compared to US$31.832 million as at 1 July 2014
* New US$6 million two year Credit Facility with
improved terms in place to help fund new drilling activity on Magnolia’s
acreage
* Permits secured to drill two 94% owned vertical wells in Oklahoma in 2015:
the Roger Swartz #2 and the Shimanek #2 targeting multiple low cost
conventional formations, including the Mississippi Lime/Chat, Redfork Sand
and the Lower Skinner Sand
Magnolia CEO, Steven Snead said, “As at year end, Magnolia Petroleum had interests in 176 producing wells in US onshore formations; net proven reserves of approximately 1 million barrels of oil and 3 MMCF of gas; and production of 281 boepd which generated revenues of US$3,851,905. In the three years since AIM admission, we have successfully built a low cost, highly revenue generative US onshore focused oil and gas company. We believe there is a lot more to come. Thanks to having a diverse portfolio of leases with multiple drilling opportunities that are profitable below current oil prices, we have a strong platform for growth in the years ahead.
“Above all, Magnolia has significant asset backing in the form of net proven reserves. These have been independently valued, using oil prices close to today’s levels, at US$26.65 million, far higher than our market valuation. We have more drilling planned for the year ahead, including two 94% owned Magnolia operated wells. As the recent director share purchases show, the Board is committed to working hard to ensure Magnolia’s market cap fully reflects the value generated to date, let alone the excellent growth potential within our portfolio.”
