Magnolia commences drilling on two Jake wells in US

US-based oil and gas production company Magnolia Petroleum has commenced drilling at two wells in Bakken and Three Forks Sanish formations, North Dakota, US.

The cost of both wells, Jake 2-11 1H and Jake 2-11 TFH, both operated by Statoil, is estimated to be $10m each and the company’s working interest in each well is estimated to be about 1.9% at $199,509.

The Jake 2-11 1H horizontal well is located in Williams County, North Dakota, and is targeting the Bakken Formation, while Jake 2-11 TFH horizontal well is targeting the Three Forks Sanish Formation which uses the same pad as the Jake 2-11 1H well.

Magnolia COO, Rita Whittington, said that Statoil has reported some of the best initial production rates in the North Dakota region.

"With this in mind, we are delighted that the two Jake wells have commenced drilling and that four additional wells in Williams County, also operated by Statoil, are due to be drilled in early 2013," said Whittington.

Magnolia is waiting to spud two new wells in Oklahoma, US – Cox 1-29H and Walker 2-29, targeting the Hunton formation and Viola formation respectively.

The company holds a 2.9% working interest in the Cox 1-29H horizontal well, which is operated by Crown Energy, and the drill cost of the well is estimated at $2.9m.

Magnolia possesses about 1.1% working interest in the Transpro-operating Walker 2-29 well, drill cost of which is estimated at $768,423.