The company owns 94% in the well and operates it.
The well is planned to be drilled to a total depth (TD) of 5,300ft and will target multiple conventional payzones, including the Mississippi lime/chat, Redfork sand and the lower skinner.
Drilling program is scheduled to be undertaken for 10 days.
Magnolia COO Rita Whittington said: "With an estimated $8 per barrel operating cost, the economics of drilling the Shimanek#2 well remain highly attractive.
"Thanks to having a 94% interest, this Magnolia operated well has the potential to materially increase our proven reserves which, as at 1 January 2015, were independently estimated at 985Mbbls of oil and 2,905MMcf of gas."
In 2014, Magnolia Petroleum divested 24 smaller stakes in non-core wells located in Alabama, Florida and Texas, US as part of its ongoing portfolio management of leases covering more than 13,500 net mineral acres.
The company plans to reinvest the proceeds to help prove-up additional reserves in core areas in North Dakota and Oklahoma.
Magnolia Petroleum’s portfolio includes stakes in 195 producing and nonproducing assets, primarily located in the Bakken/Three Forks Sanish hydrocarbon formations in North Dakota, in the oil-rich Mississippi Lime and the Woodford and Hunton formations in Oklahoma.
