Magnolia Petroleum adds eight wells and builds gas assets

2016-02-10 07:10:55

(MENAFN- ProactiveInvestors - N.America) US onshore oil and gas group Magnolia Petroleum (LON:MAGP) brought on eight new wells to its portfolio in its latest quarter taking the total in production where it has a stake to 210.

A further nine at various stages of development said Magnolia which also has agreed to participate in a 10 well drilling programme alongside operator Continental Resources targeting gas in the South-Central Oklahoma Oil Province (SCOOP).

Nine of these wells are already drilling are underway and are scheduled to come onstream in the current quarter.

SCOOP has already produced 3.2bn barrels of conventional oil though Mangolia said the move is to increase the gas portion of its production profile from 30%.

Gas markets have local supply/demand dynamics which tend to be independent of global oil prices it said.

Rita Whittington chief operating officer said: 'Magnolia now has interests in 210 producing wells in proven US onshore formations such as the Bakken in North Dakota and the Woodford and Mississippi Lime in Oklahoma.

'In the face of persistently low oil prices we continue to maintain strict control of our cost base to ensure as much of our internally generated revenues as possible are reinvested into new wells.'

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