Big picture - Why invest in Magnolia Petroleum PLC
Magnolia Petroleum PLC Snapshot
Magnolia’s growth strategy is aimed at building a significant US onshore focussed oil & gas production company. The Company is run by highly experienced industry professionals with proven track records in building value. The Directors believe that this experience in the acquisition of leases, development of projects and operations will allow it to take advantage of multiple opportunities existing in areas that are on the leading edge of developing successful drilling plays.
Defined Investment Criteria
The strategy is focussed on two areas. Firstly, Magnolia plans to continue to increase its production by participating with successful operators in developmental wells on its current acreage in the Bakken and Three Forks Sanish area in North Dakota and its Mississippi Lime, Woodford/Hunton Oil acreage in Oklahoma. The current portfolio has been developed in tandem with leading US oil companies including Marathon Oil & Gas and Chesapeake Energy.
Magnolia Petroleum targets prime areas of onshore US oil and gas development in North Dakota and Oklahoma. The Company has a diverse portfolio of revenue-generating assets including leases on 91,520 gross acres in the potentially game-changing and highly productive Bakken/Three Forks Sanish Formation in North Dakota and the proven Woodford/Hunton oil formations in Oklahoma. Magnolia is also targeting acreage on the Mississippi Formation in Oklahoma, a known play with proven substantial reservoirs.
Producing Working Interests:
- Interests in 64 oil and/or gas producing properties located onshore United States;
23 of these wells have been drilled since Magnolia was founded
These interests have a current net present value at a 10% discount rate of approximately $1,531,000
Non-Producing Working Interests
- Leases in respect of approximately 33,920 gross mineral acres (557 net mineral acres) in the Bakken/Three Forks Sanish formations, giving rights to participate in the drilling in up to eight wells per section in 28 sections located in North Dakota
- Leases in respect of approximately 57,600 gross mineral acres (702 net mineral acres) located in the Woodford and Hunton formations, giving rights to participate in the drilling in up to two wells per section in 87 sections in Oklahoma
- These interests have a current net present value at a 10% discount rate of approximately $16,482,000
Future Opportunities – Mississippi Formation
- Magnolia has executed an agreement with a geologist to use his data and analysis to evaluate and then acquire acreage on 21,000 gross mineral acres in the Mississippi formation located in Oklahoma. This acreage covers five prospects. This oil-rich region, considered tapped out by vertical drilling decades ago, has been yielding reservoirs to horizontal operators during the past two years.
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Rita Fern Whittington - Chief Operations Officer
Mrs Whittington is a petroleum landman with more than 32 years’ experience in acquisitions, operations and management of oil and gas properties. She joined Primary Natural Resources I and II as a senior member of the asset management team, where she was jointly responsible for company growth. Both companies were sold in an aggregate eight-year period generating a 3:1 return on equity.
Steven Otis Snead - Chief Executive Officer
Mr Snead is a petroleum landman with 35 years’ experience in the US onshore oil and gas industry. During this period he has owned and operated successful oil and gas operating and services companies. He founded and still owns Enerlex Inc. for the purpose of acquiring and managing royalty interests. He has extensive experience in oil and gas lease acquisition, drilling, development and operations.
Thomas Wagenhofer - Non-Executive Chairman
Mr. Wagenhofer is a petroleum engineer with more than 20 years experience in the global E&P sector. Past positions include Senior Managing Director of Metals and Energy Capital at Macquarie Bank Limited, Vice President of Ryder Scott Company and Research Engineer at Atlantic Richfield Company. Currently, Mr. Wagenhofer is founder and technical lead for Giant Capital and Gate Energy.
Ronald Sanford Harwood - Non-Executive Director
Mr Harwood has had active involvement in originating and developing projects in oil and gas exploration and production since 1981. He founded Bellwood Petroleum Corporationin 1985, Bellwood Petroleum LL Cin 2007 and Colony Petroleum, LLC in 1990. Colony secured US and international investors to participate in oil and gas exploration and production ventures originated and operated by American and Canadian independent oil and gas companies.
Derec Norman - Vice President of Accounting
Derec has spent the last eight years working in the oil and gas industry in Oklahoma City, Oklahoma. He began his career with Chesapeake Energy Corporation (NYSE: CHK), a leading operator in Oklahoma, where in his role as Acquisition & Divestiture Supervisor, he specialised in oil and gas accounting, acquisitions, divestitures, and mergers managing deals totalling over US $10 billion. Derec graduated from the University of Central Oklahoma with an honours degree in finance.
Magnolia Petroleum PLC
18452 E 111th St
Broken Arrow, OK 74011
T: +01 918 449 8750
F: +01 918 449 0180
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Cairn Financial Advisers, LLP | Nominated Adviser
Cornhill Capital Limited | Broker
18 St. Swithins Lane
PKF Littlejohn LLP | Auditors and Reporting Accountants
1 Westferry Circus
Pray Walker, P.C. | Attorneys to the Company in the USA
100 W. 5th Street
Tulsa OK 74103
United States of America
Neville Registrars Limited | Registrars
18 Laurel House