Magnolia Petroleum Plc (‘Magnolia’ or ‘the Company’) Participation in Additional Well in the Prolific Bakken Formation, North Dakota

Transaction Type
Announce Date
Post Date
Estimated Price

To acquire WI in Drone 2-34-27H well in ND.

Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and
production company, has received a proposal from, and has elected to participate with,
the operator, Slawson Exploration Co Inc., in the drilling of the Drone 2-34-27H well
(‘Drone #2’), located in Sections 27 and 34-145N-93W, Dunn Co., North Dakota.
These same sections of the Middle Bakken were successfully drilled by the Drone #1
well as announced on 4 November 2011 and resulted in an increase in production
attributable to Magnolia across all its interests from 7 to approximately 20 barrels of oil
equivalent per day.
As with Drone #1, Magnolia has a 1.3344% working interest in Drone #2. The total
cost of Drone #2 is estimated at US$9,109,075, at a cost to Magnolia of approximately
US$121,551. The estimated spud date for the well is 15 February 2012.
Magnolia COO, Rita Whittington said, “With the results of Drone #1 still fresh in our
minds we are hopeful that Drone #2 will replicate this success as we focus on materially
increasing our net production. We are now participating in 6 wells in the Bakken
Formation, where production continues to increase, highlighting its prospectivity; over
half a million barrels of oil per day are currently produced, as compared to 130,000
barrels of oil per day in 2003. Indeed, a US Geological Survey’s report estimated that
the Bakken held between 3 – 4.3 billion barrels of undiscovered recoverable oil, which
gives us much confidence in the future of this project and our participation in other
wells in the Bakken.
“Outside of the Bakken, we remain highly active in the Three Forks Sanish Formation
in North Dakota, the Woodford/Hunton reservoirs in Oklahoma and the oil rich
Mississippi also located in Oklahoma and I look forward to providing further updates on
all our interests in due course.”