Magnolia Petroleum shares rise on production bounce

22nd Aug 2014 14:59

Shares in Magnolia Petroleum leapt after the US oil & gas explorer said its daily production had risen more than 70% in just three months.Magnolia said an independent production report had shown an increase in itsnet daily production to 257 barrels of oil equivalent per day (boepd) at 1 July from 150 boepd at 1 April.The company attributed the uplift to the start of production of several wells in which it has larger than average interests.It also said a separate reserves report had shown that its leases in proven formations such as the Woodford and Mississippi Lime, Oklahoma, and the Bakken and Three Forks Sanish in North Dakota contained oil, condensate and gas worth $31.8m.Chief operating officer Rita Whittington said: "Thanks to the combination of growing revenues from production and our $5m credit facility, we are well placed to achieve our objective to prove up the reserves on our leases."Shares in Magnolia rose 0.73p or 69% to 1.78p at 13:45 in London.PW