Magnolia Petroleum has been informed by Devon Energy that a total of eight wells will be drilled on the same spacing unit in Oklahoma as the Marion 1-23 HW well, in which Magnolia has a 4.1% interest, to maximise the recovery of reserves from both the Mississippi Lime formation and the lower lying Woodford. This is the first time Magnolia will be participating in eight wells on a single section in Oklahoma. The Directors expect to receive similar proposals for other leases and are therefore confident that the strong growth in production and reserves seen to date will continue.
The Marion 1-23 HW (‘Marion’) spacing unit will see four wells drilled to the Mississippi Lime formation and a further four (including the Marion) to the lower lying Woodford. The Marion 1-23 HW is currently drilling to the Woodford and Magnolia has elected to participate in the Rothermel 2MH well (‘Rothermel’) on the same spacing unit, which will be drilled by Devon Energy to the Mississippi Lime.