Highlander

Here’s a profile based on the information available from Magnolia Oil & Gas Corporation:

Project Overview

• The Highlander Oil & Gas Holdings is associated with Magnolia Oil & Gas Corporation, although the specific details of the "Highlander oil project" itself are not explicitly outlined in the provided sources.
• However, Magnolia Oil & Gas Corporation has recently adjusted their financials to include a gain on the sale of their 84.7% interest in Highlander Oil & Gas Holdings, indicating a significant transaction involving this entity.

Operational Context

• Magnolia Oil & Gas Corporation is a high-quality, low-risk pure-play operator primarily focused on the Eagle Ford and Austin Chalk formations in South Texas.
• Their assets include a substantial position in Karnes County, known for its prolific oil and gas production. The company operates on approximately 650,000 gross acres, with 99% of these acres being Held By Production (HBP) and 98% operated by Magnolia.

Production and Development

• While specific production figures for the Highlander project are not provided, Magnolia's overall production averaged 57.5 Mboe/d in 2Q 2023, with 35% oil and 66% liquids.
• The company has emphasized the benefits of their HBP nature, which allows for systematic delineation and optimization of the play while generating free cash flow. They have also highlighted the use of modern high-intensity completions, which have improved well performance significantly.

Economic and Strategic Considerations

• Magnolia's assets, including those potentially associated with Highlander Oil & Gas Holdings, offer low entry costs and high economic returns. The company benefits from shallower production declines and high Estimated Ultimate Recovery (EUR) values with low Finding and Development (F&D) costs.

Conclusion