Woodford/Hunton Formation

Woodford is an established and proven reservoir located in south east Oklahoma. The reservoir was thought to be mostly depleted until the introduction of horizontal drilling and stimulation technology, which has opened up exciting ventures for Magnolia and other participating companies. These formations have not been exploited to the same extent as the Bakken to date, but several qualified independent exploration companies have now begun aggressive drilling programmes.

Magnolia holds undeveloped leases in respect of approximately 62,080 gross mineral acres (730 net mineral acres), giving rights to participate in the drilling of wells in 97 sections located in 26 counties in central Oklahoma. It has an average working interest of approximately 2.65% and an average net revenue interest of approximately 2.36% in the 105 sections.

Production from shale is reported as far back as 1934. The advent of improved horizontal drilling and hydraulic fracture techniques has increased the prospectivity of the shale to become a significant unconventional target for oil and gas. Publications have suggested that total gas-in-place for the Woodford Shale play is 830 Tcf, and oil-in place in the order of 250 Bbbls. However, these numbers are based on a number of assumptions covering a very large area.