Magnolia Petroleum shares rise on plans to drill eight wells in Oklahoma

17th Feb 2014 09:51

Shares in AIM-listed oil and gas explorer Magnolia Petroleum rose 0.08p, or 3.4 per cent, to 2.28p as the firm said it was joining a drilling programme of eight wells on an Oklahoma lease operated by partner Devon Energy. Magnolia, which has a 4.1% interest in the Marion 1-23 area to be drilled, said the operation would maximise the recovery of reserves from both the Mississippi Lime and lower lying Woodford formations.The company added that it expected to receive similar proposals for other leases and was "confident that the strong growth in production and reserves seen to date will continue".Magnolia Chief Operating Officer Rita Whittington said she expected the practice of drilling eight wells on a single unit, already commonplace in North Dakota, to be expanded in Oklahoma."This has the potential to significantly increase the number of drilling locations on our leases in Oklahoma... which in turn has positive implications for our production and reserves growth going forward," she said.FP