Magnolia Petroleum Plc has received a US$1,002,000 payment for consulting services provided to an international company acquiring an oil and gas project in Oklahoma. In addition, the Company has been notified by the relevant operators that five wells in which it has an interest have commenced production, generating a combined 47 boepd net to Magnolia based on reported initial production rates (‘IPR’).
Rita Whittington, COO of Magnolia, said, “This payment of US$1 million for consulting services will provide funding for additional drilling as we look to further increase our revenues from production. Additionally we are delighted with the IP rates for the four Skunk Creek wells in North Dakota and the Cummings 2H well targeting the Mississippi Lime in Oklahoma, adding just shy of 50 boepd to our daily production figures. With a pipeline of wells waiting to spud, and continual drilling proposals coming in, we believe we are well placed to deliver value for shareholders.”