Magnolia Petroleum is participating alongside Continental Resources, in the drilling of 10 new gas wells targeting the proven Woodford formation. All 10 new wells are located in the prolific South-Central Oklahoma Oil Province play in Oklahoma, from which it is estimated a total of 3.2 billion barrels of conventional oil have been recovered from 60 reservoirs.

•New wells are targeting gas in the Woodford formation, the primary source rock for conventional hydrocarbon reservoirs in the SCOOP where Continental has had considerable success •All 10 wells are lower risk increased density wells located in two sections ◦Increased density wells maximise the recovery of reserves on leases that are held by production ◦Both sections have been successfully drilled by Continental •The 10 Continental-operated wells form part of Magnolia's strategy to more evenly balance its oil/gas product mix which currently stands at 56%/44% ◦Gas markets have local supply / demand dynamics which tend to be independent of global oil prices, providing further diversification to Magnolia's producing well portfolio •Magnolia's average net working interest is 0.525% in each well •Magnolia's total cost for all 10 wells is estimated at US$590,000 - total cost of each well ranges from US$8.8 million to US$13.1 million

Tags: Magnolia Petroleum