- Magnolia Petroleum has agreed to acquire 6,700 net mineral acres in Montana for a cash consideration of US$4million.

Majority of acreage located in Daniels County amongst and surrounded by the leases totalling 320,000 net acres acquired earlier this year by Apache Corporation, an international oil and gas exploration and production company Apache has already drilled two horizontal wells that are awaiting fracture stimulation, is planning to drill two more and has attained permission to drill a further four Magnolia COO, Rita Whittington said, "We believe that this acreage in Daniels County, Montana, has the potential to become a significant extension for production from the Bakken/Three Forks Sanish formations.

"Today's acquisition matches our investment criteria, namely early, affordable access to liquids rich onshore US formations, where the application of modern techniques such as horizontal drilling may dramatically improve recovery rates and, in the process, substantially increase net production and reserves.

"The Directors believe that with lower drilling costs and multiple payzones, the economics of drilling to the Bakken/ Three Forks Sanish formations in Montana are very attractive."

At 9:56am:

[LON:AUR] Aurum Mining share price was +0.01p at 3.13p

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[LON:DES] Desire Petroleum share price was -0.12p at 22.38p

[LON:DGO] Dragon Oil share price was +9p at 570p

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[LON:FOGL] Falkland Oil and Gas Limited share price was 0p at 63.75p

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