Magnolia Petroleum involved in new Oklahoma wells

Magnolia Petroleum, the AIM-quoted US focused oil and gas exploration and production company, said three extra increased density oil wells would be drilled near the Gilchrist well in Oklahoma.

The company said project operator SandRidge Energy would conduct the drilling after “excellent initial production rates... significantly exceeded” projections.

Together with Western Energy Development, Magnolia has a combined working interest of 1.57% in the spacing unit on which Gilchrist is located and where the additional increased density wells are to be drilled.

Magnolia chief executive Rita Whittington said: “Thanks to Gilchrist’s better than expected IP rates, these three new wells have been materially de-risked, specifically in terms of geological risk.”

“They therefore have the potential to significantly add to the $0.2m of value generated for Magnolia by the successful $0.5m pilot programme with WED. We are focused on replicating this success many times over and with this in mind, we are currently investing the first $0.5m tranche of capital received under the $18.5m WED agreement.”