The company has acquired a 100% stake in 800 acres in the oil producing Mississippi Lime formation and minority interests in leases over a further 284 net acres.
The Mississippi formation is a proven commercial oil and gas system, producing from several thousand vertical wells.
The acquisition of the 100% working interests in 800 net acres includes the right to drill and the company plans to drill at least three vertical wells to test the Mississippi on this acreage in the near future.
The acquisition is in line with Magnolia’s growth strategy to operate wells in the Mississippi formation and follows the successful participation in the Sundance well with Chesapeake.
