Oil and gas explorer and producer Magnolia Petroleum has acquired 480 gross acres in the oil-producing Mississippi Lime formation in Oklahoma, US.
The company has acquired the acreage with an average working interest of 83.33% via a farm-out deal, with 400 net acres attributable to it.
The acquisition was carried out with no upfront costs to the US-focused energy company.
The move follows Magnolia’s acquisition of a 100% stake in 800 net acres in the Mississippi Lime formation last week, together with minority interests in leases over a further 284 net acres.
The acquisition assigns the company the right to drill in the Mississippi Lime formation, which is a proven commercial oil and gas system, producing from several thousand vertical wells.
Magnolia is now advancing its plans to drill one well in this formation as the operator later this year.
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By GlobalDataThe signing of the farm-out deal follows Magnolia’s intention to acquire material working interests as an operator, and it is in line with the company’s growth strategy to operate wells in the Mississippi formation.
Magnolia chief operating officer Rita Whittington said: "We are currently participating in five wells in the Bakken / Three Forks Sanish formations that are now in their completion stages, in North Dakota."
The Mississippian oil trend is an expansive carbonate stratigraphic trap producing at shallow depths between 4,500ft and 7,000ft below the surface.
