Magnolia Petroleum COO Interview Q1 FY12

Friday, Feb 10 2012 by
5
Rita Fern Whittington Magnolia Petroleum Chief Operations Officer
Rita Fern Whittington, Magnolia Petroleum, Chief Operations Officer

Magnolia Petroleum (LON:MAGP) is an AIM listed independent oil and gas exploration and production company, targeting prime areas of US oil and gas development in North Dakota and Oklahoma. Magnolia Petroleum who raised £1.2m as a part of its November 2011 UK listing move from the Plus market to the AIM, is based in Tulsa, Oklahoma and has non-operated interests in two unconventional resource plays in North America, namely the Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the Woodford/Hunton reservoirs in Oklahoma. Also, as a strategic move following its AIM listing Magnolia Petroleum have acquired a 100% interest in 800 acres in the oil producing Mississippi Lime formation, Oklahoma and minority interests in leases over a further 284 net acres, with the aim to spud a first Magnolia operated well by the end of this year.

Since the AIM move, Magnolia Petroleum has seen the volume of shares traded rise considerably and seems to have captured the interest of UK retail investors. Some other popular UK listed ‘penny share range’ O&G companies with US interests include, Range Resources (LON:RRL) who have oil and gas producing interests at the North Chapman Ranch and in East Cotton Valley Texas, Aminex (LON:AEX) who are interested in producing assets in a number of Texas projects as well as from the Shoats Creek Field in Louisiana, Caza (LON:CAZA) focus on the development and production of hydrocarbons in the Texas Gulf Coast, South Louisiana, Southeast New Mexico and the Permian Basin of West Texas regions of the United States, and Nostra Terra Oil And Gas Co (LON:NTOG) who are a sub penny play focusing on exploiting emerging plays in Kansas, Texas, Colorado and Oklahoma.

Following the recent AIM listing and Mississippi Lime formation acreage acquisition, Rita Whittington, the Magnolia Petroleum, Chief Operations Officer, has taken time out to discuss various aspects of the business, including, current drilling operations, the Bakken and Mississippi formation and their growth strategy.

Q1. Briefly, could you describe Magnolia Petroleum’s history and business model?

Magnolia is an oil and gas exploration and production company that was founded in 2008 to acquire and develop oil and gas properties in known and proven…

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This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


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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. more »

LSE Price
0.11p
Change
4.8%
Mkt Cap (£m)
1.6
P/E (fwd)
n/a
Yield (fwd)
n/a

Range Resources Limited (Range) is an exploration and production company. The Company is engaged in oil and gas exploration, development and production in Trinidad where it has interests in three onshore production licenses, including Beach Marcelle, South Quarry and Morne Diablo, as well as additional prospective exploration acreage on Guayaguayare and St Mary's licenses. more »

LSE Price
0.475p
Change
2.2%
Mkt Cap (£m)
31.3
P/E (fwd)
n/a
Yield (fwd)
n/a

Aminex PLC is a United Kingdom-based gas and oil production, development and exploration company. The Company focuses on its licenses in Tanzania, including Kiliwani North Field, Ruvuma and Nyuni area acreage. The Kiliwani North Field is independently ascribed with approximately 30 billion cubic feet (BCF) gross contingent resource and focuses on producing dry clean gas under high natural pressure (over 1,600 per square inch (psi)) from the Neocomian late Cretaceous reservoir. The Ruvuma acreage includes Ntorya-1 onshore Cretaceous gas discovery, which is independently ascribed with approximately 70 BCF gross contingent resource in the Ruvuma Basin. The Nyuni Area acreage offers high impact exploration and is ascribed with approximately 4.2 trillion cubic feet (TCF) prospective resource. It also holds royalty interest in Egypt. more »

LSE Price
1.8p
Change
4.4%
Mkt Cap (£m)
60.0
P/E (fwd)
9.8
Yield (fwd)
n/a



  Is Magnolia Petroleum fundamentally strong or weak? Find out More »


3 Comments on this Article show/hide all

Elias Jones 16th Feb '12 1 of 3

Rita mentioned in the recent interview that they had acquired 800 acres in the Mississippi
Lime Formation, now yesterday they announced that they have acquired an additional 480 gross acres in the reopening oil play with an average 83.33% working interest.

http://www.stockopedia.com/share-prices/magnolia-petroleum-LON:MAGP/news/rns/120215magpp06d6.htm/?title=foa-signed-for-additional-acreage

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Elias Jones 25th Apr '12 2 of 3
1

Anyone interested in meeting Rita Fern Whittington (the lady pictured above) and asking some questions?

Magnolia Petroleum who have participated in 27 out of 28 successful commercial wells to date are presenting to interested investors in London on Wednesday 23rd May 2012 at the Novotel, London Tower Bridge.

Mining and Resources Quarterly Investors Event
Registration & Details

http://www.mrqonline.co.uk/events/


Oilbarrel published a good Magnolia Petroleum article covering the progress to date and Mississippi Lime play potential today:

Magnolia Petroleum Acquires More Acreage In The Emerging Mississippi Oil Play In Oklahoma
http://oilbarrel.com/news/magnolia-petroleum-acquires-more-acreage-in-the-emerging-mississippi-oil-play-in-oklahoma

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Elias Jones 12th May '12 3 of 3

If anyone is interested in Magnolia Petroleum but are unable to attend the investors event noted above, I am hoping to attend the event and also meet up with Rita for a chat during the week at St Brides bow street offices. I will write up and share with the Stockopedia users the information gleaned and responses to my questions.

If someone has a pressing question they would like asked and are unable to attend the event, just let me know and I will do my best.

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