Magnolia Petroleum has sold the 24 smaller interests in non-core wells for a total consideration of US$240,750, a 190% increase on the US$83,000 value assigned to the combined proved and developed producing reserves ('PDP') of these wells in the latest Reserves Report as at 1 July 2014. In line with the Company's strategy, the proceeds will be reinvested into developing and proving up the reserves on its leases in proven US onshore formations such as the Bakken/ Three Forks Sanish in North Dakota and the Woodford/ Mississippi Lime in Oklahoma.
The 24 non-operated wells are all located in Alabama, Florida and Texas and were sold in five individual packages. Magnolia held minority interests in the wells ranging between 0.0068% and 1.54%. The sale is part of the Company's on-going management of its portfolio of leases covering over 13,500 net mineral acres in proven US formations.