Onshore focused oil and gas exploration company Magnolia Petroleum has unveiled an operational update showing that fracture stimulation is expected to commence shortly after next week at the Roger Swartz well 1.

Since drilling and testing of the well, which is operated by Magnolia Petroleum, in December 2012, the company said that all the production equipment has now arrived on site.

Following some recent inclement weather, it reported that the completion rig is scheduled for next week with fracture stimulation expected to occur shortly thereafter.

The group also outlined details of the "Chalfont 1-H" horizontal well, in which it is participating. Targeting the WoodfordFormation in Oklahoma, Magnolia Petroleum reported that the Continental Resources-operated well's total drill costs were estimated at $8.2m with the company's share totalling $19,428.

The status of eight other wells was outlined in the operational update showing that two had been drilled and were undergoing completion. One was waiting to spud, two were undergoing fracture stimulation, one was due to commence fracture stimulation this week, one was complete and one was expected to spud within 30 days.

Rita Whittington, Chief Operating Officer of Magnolia, said: "With 18 wells currently undergoing drilling, completing or fracture stimulation operations, including our own 100% owned Roger Swartz vertical well, we anticipate a further increase in revenues and reserves as these wells are brought into production.

"Combined with an additional 14 wells waiting to spud and multiple well proposals being received on our leases, we remain on course to build a significant oil and gas company focused on proven US onshore formations, and in the process generate substantial value for shareholders."

MF

Related share prices
Magnolia Petroleum (MAGP) share price