LONDON (ShareCast) - Initial production rates of Magnolia Petroleum (Other OTC: MGPTF - news) 's Campbell well exceeded expectations, boding well for future drilling activity within the Campbell unit and surrounding acreage where Magnolia has varying interests, an operational update has shown.
As the Campbell well is now producing, AIM-listed Magnolia said that reserves within the spacing unit and adjoining areas would now be classified as 'proven'.
Magnolia added that its participation in the well had given it an insight into the potential of additional wells, and provided it with geological information that would further its knowledge of the Woodford - a formation where the group holds 702 net mineral acres, conferring the right to drill in 87 sections.
Rita Whittington, Chief Operating Officer of Magnolia, said the wells were targeting three separate formations, an indication of the multiple payzones that exist across the 5,000-plus net mineral acres it holds in Oklahoma.
She added: "Combined with the numerous proposals we are receiving to add to the 126 wells at various stages of development in which we have an interest, we remain confident that we will continue to grow Magnolia's net production and reserves, and in the process, generate significant value for shareholders."
Magnolia's portfolio includes interests in 96 producing and non-producing assets primarily located in the Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the Woodford and Hunton formations in Oklahoma.
Magnolia Petroleum's share price was down 3.33% to 2.90p at 12:18 on Thursday.
- Investment & Company Information