http://uk.ibtimes.com/articles/20111025/magnolia-petroleum-identi...

http://uk.ibtimes.com/articles/20111025/magnolia-petroleum-identifies-five-prospects.htm

Magnolia Petroleum identifies five prospects

25 October 2011 @ 12:03 pm BST

Magnolia Petroleum, the PLUS-quoted onshore US oil and gas exploration and production company, has concluded an agreement with a geologist to develop prospects in the Mississippi Lime Horizontal Drilling Play in Noble County, Oklahoma.

To date the geologist has identified five prospect areas that cover approximately 80 square miles.

The Mississippi Lime Horizontal Drilling Play is a re-activation of the development of the Mississippi Lime formation in northern Oklahoma and southern Kansas. The Mississippian oil and gas bearing system is a proven commercial trend producing from several thousand vertical wells for more than 50 years.

The core of the operation involves drilling horizontal laterals in existing vertical wells or new horizontal wells in the vicinity of historical Mississippi producers or dry holes. Active companies involved include Chesapeake Energy, SandRidge Energy, Range Resources, EOG Resources, Eagle Resources, and Red Fork Energy.

There are currently approximately 25-30 rigs actively drilling in the area. To date there have been approximately 300 horizontal wells drilled.

Rita Whittington, Chief Operating Officer, commented, "We are very excited to have signed this agreement giving us access to prospects in the Mississippi Lime Play. The last well in which we participated in the Mississippi Play, the Sundance, paid back all of Magnolia's associated costs within three months."

Story provided by StockMarketWire.com