Magnolia Petroleum involved in new Oklahoma wells
Magnolia Petroleum
0.30p
16:34 29/06/18
Magnolia Petroleum, the AIM-quoted US focused oil and gas exploration and production company, said three extra increased density oil wells would be drilled near the Gilchrist well in Oklahoma.
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The company said project operator SandRidge Energy would conduct the drilling after “excellent initial production rates... significantly exceeded” projections.
Together with Western Energy Development, Magnolia has a combined working interest of 1.57% in the spacing unit on which Gilchrist is located and where the additional increased density wells are to be drilled.
Magnolia chief executive Rita Whittington said: “Thanks to Gilchrist’s better than expected IP rates, these three new wells have been materially de-risked, specifically in terms of geological risk.”
“They therefore have the potential to significantly add to the $0.2m of value generated for Magnolia by the successful $0.5m pilot programme with WED. We are focused on replicating this success many times over and with this in mind, we are currently investing the first $0.5m tranche of capital received under the $18.5m WED agreement.”