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…
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.
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