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Share Name Share Symbol Market Type Share ISIN Share Description
Magnolia Pet LSE:MAGP London Ordinary Share GB00B63QSF76 ORD SHS 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 0.30 0.20 0.40 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 1.0 -1.3 -0.1 - 0

Operations Update North Dakota

07/12/2011 7:00am

UK Regulatory (RNS & others)



 
TIDMMAGP 
 
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 
 
7 December 2011 
 
             Magnolia Petroleum Plc (`Magnolia' or `the Company') 
 
     Operations Update in the Highly Productive Bakken/Three Forks Sanish 
                     hydrocarbon formations, North Dakota 
 
Magnolia Petroleum Plc, the AIM listed US focussed oil and gas exploration and 
production company, is pleased to announce a positive update on its operations 
in North Dakota where the Company has a portfolio of interests in the 
potentially game-changing and highly productive Bakken/Three Forks Sanish 
hydrocarbon formations. 
 
Overview 
 
  * Successful drilling of the two Skunk Creek Wells located in the Bakken/ 
    Three Forks Sanish formations, Dunn County, North Dakota 
 
  * 
      + Magnolia participated with a 0.59% interest in the drilling of each 
        well with Kodiak Exploration 
 
      + Highly encouraging initial shows and subsequent application made to 
        drill an additional three Bakken wells and three Three Forks Sanish 
        wells within the same 1,280 acre spacing unit 
 
      + On completion of these further six wells, a substantial increase in 
        overall production attributable to Magnolia is expected 
 
      + Completion of both wells expected to commence by end of 2011 - between 
        23 and 24 multi stage frac techniques are to be performed on the two 
        wells 
 
  * Stocke 1-4-9H well, located in McKenzie County, North Dakota, now reached 
    total depth, awaiting completion 
 
  * 
      + Magnolia participating with Hunt Oil Company with a 3.17% working 
        interest 
 
Magnolia Petroleum COO, Rita Whittington said, "We are delighted to be able to 
provide our shareholders with such a positive update on our operations so close 
to our listing on AIM last month. The successful drilling of the two wells at 
Skunk Creek and reaching total depth in the Stocke well provides us with huge 
encouragement as we continue to participate in drilling in the highly 
productive Bakken/Three Forks Sanish formations. We are particularly excited 
about the Skunk Creek Three Forks Sanish well, as Moyes & Co. our Competent 
Person singled out this well as a trigger for a significant shift in Magnolia's 
reserve categories once the well has been successfully drilled and is 
producing. 
 
"Modern technology such as multi-stage frac techniques used in the completion 
of horizontal wells has increased production tremendously in non-conventional 
oil and gas plays. Magnolia's participation in the Drone well, completed as a 
30 stage frac, yielded an initial production of 1,199 barrels of oil per day, 
and nearly trebled Magnolia's net production interests to approximately 20 
barrels per day. We are extremely pleased with the Company's participation in 
successful drilling programmes to date and our highly experienced Board 
anticipates the Stocke and Skunk Creek wells will prove to be highly productive 
and will add to our outstanding success rate to date. With this in mind, I very 
much look forward to updating shareholders on our progress." 
 
Detailed Information 
 
Reports have now been received from the operator in respect to the Skunk Creek 
Wells, located in Dunn County, North Dakota. Magnolia participated with a 0.59% 
interest in the drilling of each of these two wells with Kodiak Exploration. 
The primary targets for these wells were the Three Forks Sanish and the Bakken 
Formations. Both wells have successfully been drilled and are awaiting 
completion. According to the operator, they are highly encouraged by the shows 
and have applied to the North Dakota Industrial Commission to drill an 
additional three Bakken wells and three Three Forks Sanish wells within the 
same spacing unit. Multi-stage frac techniques between 23 and 24 stages are to 
be performed on these wells. This information is in line with Magnolia's 
Competent Person's Report (announced 25 October 2011 and contained, in full in 
the AIM admission document) which indicates that the Bakken is being infill 
drilled to four wells per 1,280 acres spacing and the Three Forks Sanish is 
also starting to be developed in the area at four wells per 1,280 acre spacing 
unit. This infill drilling would allow for an additional 78 Bakken and 107 
Three Forks Sanish locations for a total of 108 wells in the Bakken and 108 
wells in the Three Forks Sanish. Once permission is obtained and these initial 
six wells are drilled, the Company expects that its overall production 
interests will increase substantially. 
 
In addition, Magnolia participated with Hunt Oil Company in the drilling of the 
Stocke 1-4-9H well, located in McKenzie County, North Dakota. The Stocke well 
reached total depth on 2 December 2011 and is awaiting completion. This well 
will have a 21 stage frac treatment. Magnolia has a 3.17% working interest in 
this well, which is nearly two and a half times larger than Magnolia's 1.34% 
working interest in the Drone well which yielded total initial production of 
1,199 barrels of oil per day (as announced on 4 November 2011). 
 
Completion on the Skunk Creek and Stocke wells described above are expected to 
start by year-end. 
 
                                 * * ENDS * * 
 
For further information on Magnolia Petroleum plc visit 
www.magnoliapetroleum.com or contact the following: 
 
Steven Snead              Magnolia Petroleum Plc         +01 918 449 8750 
 
Rita Whittington          Magnolia Petroleum Plc         +01 918 449 8750 
 
Antony Legge              Daniel Stewart & Company Plc   +44 (0) 20 7776 6550 
 
Charles Vaughan           Northland Capital Partners     +44 (0) 20 7796 8800 
                          Limited 
 
Hugo de Salis             St Brides Media and Finance    +44 (0) 20 7236 1177 
                          Ltd 
 
Lottie Brocklehurst       St Brides Media and Finance    +44 (0) 20 7236 1177 
                          Ltd 
 
Frank Buhagiar            St Brides Media and Finance    +44 (0) 20 7236 1177 
                          Ltd 
 
 
 
END 
 

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