Magnolia Petroleum Plc Updated Reserves Report
16 Janvier 2018 - 8:00AM
UK Regulatory
TIDMMAGP
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
16 January 2018
Magnolia Petroleum Plc ('Magnolia' or 'the Company')
Updated Reserves Report
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, announces the results of an independent
Reserves Report ('the Report') as part of the six-month bank debt
redetermination process. The Report covers the Company's net proved developed
producing reserves ('PDP') across its leases in US onshore formations such as
the Woodford and Mississippi Lime, Oklahoma, and the Bakken and Three Forks
Sanish, North Dakota.
Overview:
* Total net PDP oil and condensate reserves of 274.475 Mbbl as at 1 January
2018 (1 January 2017: 282.686 Mbbl of oil and condensate)
* Total net PDP gas reserves of 1,692.497 MMCF as at 1 January 2018 (1
January 2017: 2,343.116 MMcf gas)
* Change in total net PDP reserves due to:
+ the divestment of interests in the 13 Sympson Wells to align portfolio
with counties that qualify for investment under the US$18.5m capital
management agreement with Western Energy Development LLC ('WED') and to
pay down debt - as these were increased density wells, all 13 had been
included in the January 2017 report
+ the divestment of a number of non-core and low valued wells
* US$4,002,000 value (NPV9) of total net PDP reserves as at 1 January 2018 (1
January 2017: US$4,026,000) provides strong asset backing to current market
capitalisation
* The Reserves will be used to re-determine the borrowing base limit of the
Company's US$6 million credit facility in February 2018
* The Report only covers proved developed producing reserves and does not
include proved shut-in, proved undeveloped, probable and possible reserve
classes as well as Magnolia's interests in undeveloped acreage
Rita Whittington, CEO of Magnolia, said, "The updated Reserves Report
demonstrates the significant asset backing behind Magnolia, even after taking
into account factors such as the realignment of our portfolio of producing
wells over the period to those areas in Oklahoma where we will be focusing our
activities under our US$18.5 million investment agreement with WED. These
areas include the prolific SCOOP and STACK plays where operating costs are
relatively low, recovery rates are high, and activity levels are increasing.
"Having recently received the first US$500,000 tranche of the WED Agreement, we
are currently deploying these funds into new leases and wells which, as well as
generating fees for Magnolia, will also provide us with a free carry on the
first wells drilled. As a result, I am confident that going forward the value
of our PDP reserves will rise significantly, and I look forward to providing
updates on our progress."
Summary Table of Magnolia's Total Net PDP Reserves as at 1 January 2018:
Net PV9
State Reserve BBLs MCF US$
Category
Oklahoma PDP 92,446 1,537,668 1,739,490
North Dakota PDP 182,029 154,829 2,262,700
Total 274,475 1,692,497 $4,002,190
NPV9 valuations are based on the current CME price deck for oil and the Henry
Hub gas price deck as of January 2018 and take into account the future net cash
flow which is defined as future net revenue, less estimated future net OPEX
(well operating cost and production taxes) and future net capital. The total
net PDP reserves are those defined as natural gas and liquid hydrocarbon
reserves to Magnolia's interest after deducting all royalties, overriding
royalties, and reversionary interests owned by outside parties that become
effective upon pay-out of specified monetary balances. All reserves estimates
have been prepared using standard engineering practices generally accepted by
the petroleum industry and conform to the guidelines adopted by the 2007 SPE/
SPEE/WPC PRMS Guidelines.
The information contained in this announcement regarding the reserves analysis
has been reviewed and approved by Mike Mabry on behalf of Sycamore Resources.
Mr Mabry has over 30 years of relevant experience in the oil industry and has a
B.S. in Petroleum Engineering from the University of Tulsa. He has previously
served as Chair of the SPE Improved Oil Recovery Symposium, presiding over 700
engineers from 65 counties. Over the course of his career, Mr Mabry has held
the position of Senior Petroleum Engineer at Apache Corporation, Petrohawk
Energy and MAPCO and is currently Managing Director of Sycamore Resources in
Tulsa, Oklahoma.
The information contained within this announcement constitutes inside
information stipulated under the Market Abuse Regulation (EU) No. 596/2014.
** ENDS **
Glossary
'M' means Thousand
'MBO' means Thousand Barrels of Oil
'Mcfd' means Thousand Cubic Feet per Day
'MM' means million (thousand thousand not million million), as used in
oilfield and heat content units such as MMSTB and MMBtu
'MMBbl' means Million barrels
'MMcfd' means Million Cubic Feet per Day
'NRI' means Net Revenue Interests
'Proved Reserves' means those quantities of petroleum which, by analysis of
geological and engineering data, can be estimated with reasonable certainty to
be commercially recoverable, from a given date forward, from known reservoirs
and under current economic conditions, operating methods, and government
regulation - Proved reserves can be categorized as developed or undeveloped
'Probable reserves' are those unproved reserves which analysis of geological
and engineering data suggests are more likely than not to be recoverable. In
this context, when probabilistic methods are used, there should be at least a
50% probability that the quantities actually recovered will equal or exceed the
sum of estimated proved plus probable reserves
'Possible Reserves' are those unproved reserves which analysis of geological
and engineering data suggests are less likely to be recoverable than probable
reserves. In this context, when probabilistic methods are used, there should be
at least a 10% probability that the quantities actually recovered will equal or
exceed the sum of estimated proved plus probable plus possible reserves
Reserve Status Categories
'Unproved Reserves' are based on geologic and/or engineering data similar to
that used in estimates of proved reserves; but technical, contractual,
economic, or regulatory uncertainties preclude such reserves being classified
as proved. Unproved reserves may be further classified as probable reserves and
possible reserves
Reserve status categories define the development and producing status of wells
and reservoirs
'Developed reserves' are expected to be recovered from existing wells including
reserves behind pipe. Improved recovery reserves are considered developed only
after the necessary equipment has been installed, or when the costs to do so
are relatively minor. Developed reserves may be subcategorised as producing or
non-producing.
'Producing reserves' are expected to be recovered from completion intervals
which are open and producing at the time of the estimate. Improved recovery
reserves are considered producing only after the improved recovery project is
in operation.
'Non-producing reserves' include shut-in and behind-pipe reserves. Shut-in
reserves are expected to be recovered from (1) completion intervals which are
open at the time of the estimate but which have not started producing, (2)
wells which were shut-in for market conditions or pipeline connections, or (3)
wells not capable of production for mechanical reasons. Behind-pipe reserves
are expected to be recovered from zones in existing wells, which will require
additional completion work or future recompletion prior to the start of
production.
'Undeveloped reserves' are expected to be recovered: (1) from new wells on
undrilled acreage, (2) from deepening existing wells to a different reservoir,
or (3) where a relatively large expenditure is required to (a) recomplete an
existing well or (b) install production or transportation facilities for
primary or improved recovery projects.
* * ENDS * *
For further information on Magnolia Petroleum Plc visit
www.magnoliapetroleum.com or contact the following:
Rita Whittington Magnolia Petroleum Plc +01918449 8750
Jo Turner / Liam Murray Cairn Financial Advisers +44207213 0880
LLP
Nick Bealer Cornhill Capital Limited +44207710 9610
Lottie Wadham St Brides Partners Ltd +44207236 1177
Frank Buhagiar St Brides Partners +44207236 1177
Ltd
END
(END) Dow Jones Newswires
January 16, 2018 02:00 ET (07:00 GMT)
Magnolia Pet (LSE:MAGP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Magnolia Pet (LSE:MAGP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024