Additional Information
Market: AIM
Sector: Oil & Gas Exploration & Production
EPIC: MAGP
1 year chart
1 day chart
Magnolia Petroleum
www.magnoliapetroleum.com

Magnolia Petroleum plc is an AIM listed oil and gas production company focused on the acquisition, exploitation and development of oil and gas properties primarily located onshore in the United States. Led by a highly skilled management team with over 100 years combined experience in the on shore oil and gas industry, the Company already has interests in over 60 producing properties and significant acreage in two major project areas, the potentially game-changing and highly productive Bakken shale in North Dakota and the proven Woodford and Hunton formations in Oklahoma. The Company is also currently targeting the Mississippi Formation in Oklahoma, a known play with proven and substantial reservoirs

Magnolia Petroleum delighted by stellar performance of latest Bakken well

1st Jul 2013, 4:51 am by Ian Lyall
The Marathon-operated Gustafson 31-30H, in the prolific Bakken formation in North Dakota, came on at 1,216 barrels a day, or a net 50 barrels a day to Magnolia, which has 4.07%. The Marathon-operated Gustafson 31-30H, in the prolific Bakken formation in North Dakota, came on at 1,216 barrels a day, or a net 50 barrels a day to Magnolia, which has 4.07%.

---ADDS SHARE PRICE AND BROKER COMMENT---

Magnolia Petroleum (LON:MAGP) chief operating officer Rita Whittington said the company was “delighted” by the initial production rate of its latest oil well.

The Marathon-operated Gustafson 31-30H, in the prolific Bakken formation in North Dakota, came on at 1,216 barrels a day, or a net 50 barrels a day to Magnolia, which has 4.07%.

It was the highlight of a four-well update from the various operators the AIM-listed group is working with. Condit in Oklahoma flowed at 1,546 barrels. Magnolia receives a net 7.7 barrels. Meanwhile, Voise 1-10H in the Mississippi Lime in the same state came on at 105 barrels, or 1.3 net, while Joan 1-21, also a Lime play, came on at 12 barrels a day, or 0.3 net.

Whittington said: "With Gustafson's excellent results in mind, we are looking forward to receiving the initial production rate for the Helgeson well, situated close to Gustafson, in which we also hold a four per cent net revenue interest, as we look to continue to increase net production and prove up reserves on the 13,500 plus net mineral acres we hold in proven US onshore formations."

Magnolia’s shares advanced 7% in early trade to 2.44p.

Analyst Andrew McGeary, of Northland Capital, said: “Assuming the company is producing in the region of 150 barrels a day, Gustafson would represent a 26% increase in revenue alone.

“Depending on ultimate decline rates, we would expect the well to payback in less than two years.

“Gustafson was the first in what we expect will be a number of high-impact well announcements.”

He points to another Marathon Oil-operated Bakken well, Helgeson (where Magnolia has a 4.51% net interest), which is expected to be “similarly material”.

Meanwhile, in the Mississippi Lime, the company recently announced its participation in the Cummings-operated Blaser well in which Magnolia has a 9.4% interest.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here