The US-focused oil and gas company said the six wells in the Woodford and Mississippi Lime formations in Oklahoma, operated by Devon Energy, produced strong initial production results, ranging from 641 barrels of oil equivalent per day to 159 barrels.
Magnolia holds a 4.1% net revenue interest in the wells. The initial production figures add 91 barrels of oil equivalent per day to Magnolia’s net production.
“The excellent initial production rates achieved demonstrate the low geological risk associated with drilling on units where production has been established, and also the presence of multiple productive formations on our leases, in this case the Woodford and Mississippi Lime,” said Magnolia Chief Operating Officer Rita Whittington.
Magnolia shares were up 6.2% to 1.195 pence on Thursday, one of the best performing stocks on the AIM All-Share index.
By Sam Unsted; email@example.com; @SamUAtAlliance
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