Magnolia Petroleum PLC To Participate With Marathon In The Bakken -- June 1, 2017

Disclaimer: this is not an investment site. I have no interest in Magnolia except as a way to learn more about the Bakken. A reader sent me the link to the press release.

This is an interesting press release by Magnolia Petroleum PLC, riding the coattails of Marathon Oil at this link: Magnolia will participate in six new MRO wells.

All six wells have low exploration risk thanks to being located on or close to prolific producing units.

The new Marathon wells, which include two to be drilled to the Bakken and four to the Three Forks Sanish, will be drilled on the same spacing unit as two highly productive Bakken completions in Dunn County, North Dakota in which Magnolia has an interest in:

• Lazy DE 24-7H, which as at March 2017 had recovered over 300,000 barrels of oil and 196,944 MCF of gas, is currently producing over 150 BOPD and 120 MCFD

• Lazy DE 34-7H, which as at March 2017 had recovered 250,000 barrels of oil and 165,563 MCF of gas, is currently producing 135 BOPD and 100 MCFD

The new Three Forks Sanish wells will be the first to be drilled in the unit however other Three Forks Sanish wells in the area have been highly productive, achieving initial production rates of over 1,700 BOPD and 700 MCFD (source North Dakota Oil & Gas Commission).

For example:

• The Marathon operated Krebs 34-20TFH well, which directly offsets the Lazy DE, tested the Three Forks with an initial production rate of 1,722 BOPD and 748 MCFD and over the last two years has recovered 124,000 barrels of oil - currently producing 85 BOPD and 83 MCFD

The six new wells are in line with management’s strategy to minimise exploration risk - this includes the evaluation of drilling data gained by Magnolia through its participation in wells in which it has very small interest.

And the press release goes on; of interest to newbies; not much new for long-term readers.

From Yahoo!Finance:

Magnolia Petroleum Plc is a holding company, which provides direction and other services to its subsidiaries. The Company's geographical segments include the United Kingdom (UK) and the United States of America (USA). It is engaged in oil and gas production and exploration in the United States. It is focused on acquiring and developing leases in the United States onshore formations. The Company has approximately 146 wells. Its projects include Bakken/Three Forks Sanish Formation in North Dakota, Woodford/Hunton oil formations in Oklahoma, and Mississippi Lime Play. The Bakken/Three Forks Sanish Interests target the Bakken formation, which comprises approximately three separate reservoirs, and the Three Forks Sanish Formation. The Company holds leases in respect of approximately 67,200 gross mineral acres, giving rights to participate in the drilling of wells located in central Oklahoma. The Company holds leases covering approximately 5,500 net mineral acres in Mississippi Lime. 

What caught my interest was Lazy DE 24-7 (#17797), which was a re-fracked MRO well. See more here.