Magnolia Mississippi Lime Purchase Follows On Heels Of Previous Deal

Bought an average 83.33% WI in 480 gross acres in Mississippi lime formation in OK.

Magnolia Petroleum Plc, London, (London AIM: MAGP) has acquired an additional 480 gross acres in the Mississippi lime formation in Oklahoma from an undisclosed seller for an undisclosed price.

The deal includes an average 83.33% working interest (81.25% net revenue interest) in 480 gross (400 net) acres via a farm out.

Magnolia will assign 16.25% of its working interest to the farmor in the first well drilled in each unit, once all costs associated with drilling the first well have been recovered by the company.

This deal follows Magnolia’s recent purchase of 100% interest in 800 acres in the Mississippi lime and minority interests in leases over a further 284 net acres from an undisclosed seller for $230,000.

Magnolia chief operating officer Rita Whittington says, “The acquisition builds on our previous announcement of the acquisition of 800 net acres in the Mississippi lime formation, and underlines our commitment to acquiring assets in this exciting area.”