Magnolia Petroleum (LON:MAGP) is taking stakes in two new Oklahoma wells, meaning it now has interests in 205 – more than three times the number it started with when the group listed on AIM in November 2011.
Its working interests in the Jimmy 1-28H and Peters 1-27H wells will be 3.78% and 5.21% respectively, while the total costs to participate are put at just under US$264,000.
Both will target Oklahoma’s prolific Woodford formation with the former operated by Red Fork Energy and the latter by Paul Gillham.
Chief operating officer Rita Whittington said: "We have over 600 potential drilling locations on our leases and with the multiple proposals we are receiving to participate in new wells, we expect to build on the excellent growth seen to date.”
Separately, Magnolia said it has increased its interest in the spacing unit in North Dakota where the Skunk Creek 14H and 15H wells are currently producing from the Bakken and Three Forks Sanish formations. It now holds a 0.90% working interest (previously 0.6%).
Operator Kodiak Energy estimates a total of 4.98mln barrels of oil and 2.88 billion cubic feet of gas can be recovered from the Skunk Creek spacing unit by drilling eight wells targeting the Bakken and Three Forks Sanish formations.
Whittington said: “On-going leasing activity allows us to add to the 13,500 net mineral acres we hold, including those leases in which we already have an interest such as Skunk Creek.
“The operator's estimate of recoverable reserves at Skunk Creek illustrates the prolific nature of the Bakken and Three Forks Sanish formations and bodes well for our other leases in North Dakota including the Statoil operated Jake wells.”
