Magnolia Petroleum (LON:MAGP) the AIM listed independent oil and gas exploration and production company recently provided its shareholders with a positive update concerning its participation in the Hawkins Field Unit, located in Wood County Texas, alongside the operator, oil and gas major ExxonMobil (NYSE:XOM). Magnolia Petroleum with their 0.01543 per cent working interest in the project, informed the market that a new nitrogen rejection unit plant is expected to be operational as of next month, with ExxonMobil the operator anticipating a boost in field production rates from 5,400 bopd to between 6,000-7,000 bopd and an increase in gas production to between 20,000-25,000 mcfs/d.
Magnolia Petroleum, who note that the Hawkins Field Unit contains the largest Proved 2P oil and gas reserves among Magnolia's interests were clearly buoyed by the ExxonMobil operational update, which also suggests that the new nitrogen rejection plant will increase the life of the field by up to 25 years and lead to the recovery of up to a further 40 million boe. Commenting on the targeted increase in production announcement, Magnolia Petroleum COO, Rita Whittington said; [1]
"We are highly encouraged by the results of our participation with ExxonMobil in the NRU plant, which is expected to significantly raise the efficiency of the Hawkins field. We look forward to receiving the production results. The Hawkins field is one of Magnolia's largest assets in terms of both gross and net proved 2P reserves and meaningful additional revenues will be generated. These will be channelled to fund the development of our extensive and highly prospective portfolio of assets in the prolific Bakken/Three Forks Sanish hydrocarbon formations, North Dakota, the producing Hunton and Woodford formations in Oklahoma and the oil rich Mississippi also in Oklahoma where we participate with other major oil and gas companies including Marathon, Chesapeake and Hunt Oil."
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Magnolia Petroleum who raised £1.2m as a part of its 25 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 and the Woodford. Magnolia Petroleum is also vying through plans to acquire new acreage, to work as an operator in the nascent Mississippi Lime Play. During 2011 Magnolia Petroleum participated with Chesapeake in a successful…
