Enverus Southeastern Scout, November 21, 2019
Magnolia Oil & Gas brought two Austin Chalk wells online at Giddings field late in Q3. During the initial 30 days, the wells, which are located 15 miles apart in Fayette County, Texas, delivered a combined 2,700 boe/d (63% oil). As of Nov. 4 the combined rate had increased to 2,900 boe/d (62% oil), or 328 boe/d per 1,000 lateral ft. As part of its ongoing appraisal program, Magnolia plans to complete three additional Giddings field wells in Q4.
“Our investment and activity in Giddings to date has already yielded data improving our understanding of the field, providing us with greater confidence that we expect will lead to true development of this asset over time,” CEO Stephen Chazen said on Magnolia’s Q3 earnings call Nov. 5. He added that the Giddings program is “pretty far away from current production and designed to guide our leasing program as we go forward.”
During Q3, Magnolia’s production averaged 71,300 boe/d (75% oil), up 10% sequentially. Q4 volumes are expected to be relatively flat, but with the contribution from Giddings increasing 10%. The company will continue to run one rig at Giddings and one rig on its Karnes position, which was expanded by 430 net acres in Q3. One completion crew is being split between the two areas.
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