Press

Magnolia Petroleum: Set To Earn Fees And Interests In New US Onshore Wells After First $500,000 of $18.5M Capital Management Agreement Received


Magnolia Petroleum plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce Western Energy Development LLC (‘WED') has received the first US$500,000 tranche of capital as part of its exclusive US$18.5 million capital management agreement with Magnolia.  Magnolia will invest these funds into oil and gas properties in Oklahoma that qualify under the US Immigrant Investor Programme and in return will earn fees and equity in new wells and leases.

As announced on 4 July 2017, Magnolia entered into an exclusive agreement with WED to invest, on behalf of WED, up to US$18.5 million into the Oklahoma oil and gas market. In return Magnolia receives cash fees as well as a 25% carried working interest in the first well in each spacing unit. A pilot programme in which Magnolia invested US$500,000 on behalf of WED into qualifying oil and gas properties in Oklahoma, generated US$75,500 in value for Magnolia in terms of lease bonus and the carried interest for 25% in the first well within each spacing unit; plus an additional US$127,982 uplift in the PV9 value of Magnolia's reserves.  To date, the pilot programme has generated a rate of return of 100% and a return on investment of 3.26 times.

Magnolia CEO, Rita Whittington said, “The first US$500,000 under the US$18.5 million agreement with WED represents a major milestone for Magnolia.  Thanks to the quantum of funds involved, the fees generated, and the 25% carried interest in new wells, the WED agreement promises to accelerate our strategy which is to generate value through the acquisition and development of leases in productive US onshore formations alongside established operators such as Devon Energy and Continental Resources.  The management fees will complement the revenues generated by our portfolio of interests in over 150 producing wells; while our carried interest in new wells will provide de-risked, nil cost entry into attractive leases.”

Western Energy Development LLC CEO, Greg Neher said, “We expect today's US$500,000 investment will be the first of many and we look forward to working closely with the Magnolia team with a view to replicating the success of the pilot programme on a much larger scale.  We feel confident in our near-term competitive position because amendments to the EB-5 programme currently being considered by the US Congress have the potential to accelerate our growth.  Specifically, two changes contemplated in proposed bills: firstly a dramatically shorter visa issuance wait for applicants that invest in rural projects such as WED's compared to urban real estate projects; and secondly an almost doubling in the EB-5 minimum investment amount — meaning we require fewer investors to reach or exceed our targets.”

Western Energy Development LLC

WED is an affiliate of Western Energy Regional Center LLC, a United States Citizenship and Immigration Services - designated Regional Centre which can accept investment in job-creating projects from foreign nationals through the Immigrant Investor Programme. 



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

magnoliapetroleum.com/first-usd500000-received-und...

Magnolia PetroleumonshoreUnited StatesCapital ManagementAIMWestern Energy Development

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 1 year agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 1 year agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice