Magnolia Petroleum Plc Production Update for Three US Onshore Wells

 
TIDMMAGP 
 
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 
 
3rd January 2018 
 
                            Magnolia Petroleum plc 
 
                         ('Magnolia' or 'the Company') 
 
                 Production Update for Three US Onshore Wells 
 
Magnolia Petroleum plc, the AIM quoted US focused oil and gas exploration and 
production company, is pleased to provide a production update for three new 
wells that have recently come online and are now producing from the Mississippi 
Lime formation in the prolific STACK ('Sooner Trend Anadarko (basin) Canadian, 
Kingfisher counties') play in Oklahoma in which the Company has a working 
('WI') / net revenue interest ('NRI'), alongside leading operators such as 
Continental Resources. 
 
Fazio 1-13MH ('the Fazio Well'), Kingfisher County, Oklahoma 
 
The Fazio Well, which is operated by Oklahoma Energy Acquisitions, is a 
recently completed horizontal Mississippi Lime Formation test.  Initial 
Production Rates ('IP') for the Fazio Well were 644 BOPD and 1,507 MMCFD (794 
BOEPD) and during the first full month of production averaged over 589 BOPD and 
1,338 MCFD, significantly higher than the pre-drill projected IP of 258 BOPD 
and 1,085 MCFD (367 BOEPD). The current projected EUR ('Estimated Ultimate 
Recovery') is 240 MBO and 850 MMCFG.  Magnolia has a 0.796% WI and a 0.597% NRI 
in the Fazio Well. 
 
Foree 1-18-7XH ('the Foree Well'), Blaine County, Oklahoma 
 
The Foree Well, a horizontal Mississippi Lime Formation test that was completed 
in April 2016 by the operator Continental Resources, was reported as having IP 
rates of 1,411 BOPD and 3,900 MCFD (1,801 BOEPD).  As at the end of November 
2017, the Foree Well had recovered over 142 MBO and 715 MMCFG and is currently 
producing at a rate of 90 BOPD and 613 MCFD (151 BOEPD). The projected EUR for 
the Foree Well is 362 MBO and 1.97 BCFG.  Already 39% of the projected ultimate 
oil recovery and 36% of the projected ultimate gas recovery have been 
recovered.  Magnolia has a carried WI  of 0.39% and a 0.29% NRI in Foree. 
 
Houses Quarter 10-7-6XH ('the Houses Quarter Well'), Blaine County, Oklahoma 
 
The Continental Resources operated Houses Quarter Well, a horizontal 
Mississippi Lime Formation test which was completed in May 2017, had an IP of 
716 BOPD and 1,702 MCFD (886 BOEPD).  As at end of November 2017, 63 MBO and 
245 MMCF have been recovered and the Houses Quarter Well is currently producing 
over 205 BOPD and 1,200 MCFD (325 BOEPD). The projected EUR is 222 MBO and 1.4 
BCFG and within just six months 28% of the projected oil reserves and 18% of 
the projected gas reserves have been recovered.  Magnolia has a carried WI of 
0.39% and a 0.29% NRI in the Houses Quarter Well. 
 
Magnolia CEO, Rita Whittington said, "These three wells highlight the prolific 
nature of the STACK play in Oklahoma which, together with the SCOOP, is an area 
where we are increasingly focusing our activity, both independently as well as 
via our US$18.5 million capital management agreement with Western Energy 
Development LLC.  We expect to invest the initial US$500,000 from WED and 
subsequent tranches we receive under the agreement into leases in these two 
plays which, as well as earning fees for Magnolia, will also result in us 
gaining a free carry into new wells drilled.  Our focus on the highly active 
STACK and SCOOP plays, together with our agreement with WED promise to 
kickstart our strategy to significantly grow our production and reserves 
through the acquisition and development of leases alongside established 
operators such as Continental Resources. As a result, we are confident the year 
ahead will see a step-up in activity and I look forward to providing further 
updates on our progress." 
 
The information contained within this announcement constitutes inside 
information stipulated under the Market Abuse Regulation (EU) No. 596/2014. 
 
Glossary 
 
'BOPD' means Barrels of oil per day 
 
'BOEPD' means Barrels of oil equivalent per day 
 
'M' means Thousand 
 
'MBO' means Thousand Barrels of Oil 
 
'Mcfd' means Thousand Cubic Feet per Day 
 
'MM' means    million (thousand thousand not million million), as used in 
oilfield and heat content units such as MMSTB and MMBtu 
 
'MMBbl' means Million barrels 
 
'MMcfd' means Million Cubic Feet per Day 
 
                                 * * ENDS * * 
 
For further information on Magnolia Petroleum Plc visit 
www.magnoliapetroleum.com or contact the following: 
 
Rita Whittington           Magnolia Petroleum Plc       +01918449 8750 
 
Jo Turner / James Caithie  Cairn Financial Advisers     [phone] 
                           LLP 
 
Nick Beeler                Cornhill Capital Limited     [phone] 
 
Lottie Wadham              St Brides Partners Ltd       [phone] 
 
Frank Buhagiar             St Brides Partners           [phone] 
                           Ltd 
 
 
 
END 
 

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January 03, 2018 02:00 ET (07:00 GMT)