Magnolia Petroleum expects strong production growth

7th Feb 2014 10:10

Magnolia Petroleum expects to see a rise in production after receiving a "large number" of proposals from operators to drill infill wells across its US onshore portfolio.Operators, such as Devon Energy, Newfield Exploration, Chesapeake Energy and Kodiak Exploration, have put forward proposals for onshore formations, including the Bakken, North Dakota, and Mississippi Lime, Oklahoma.Magnolia is participating in nine increased density wells on leases held by production since January 1st and another 12 have been filed by the relevant operators since then."With production already established on the relevant leases, increased density wells are very much the low hanging fruit by which US onshore operators can rapidly increase production, maximise recovery rates on individual spacing units, and upgrade reserves to the proven developed producing (`PDP') category," said Chief Operating Officer, Rita Whittington.The group' participation in increased density wells is a key part of its strategy to maximise the recovery of and prove up the reserves on its leases covering more than 13,500 net mineral acres in proven US onshore formations.Shares rose 4.65% to 2.25p at 10:37 on Friday.RD