Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 5 June 2013 Magnolia Petroleum Plc (`Magnolia' or `the Company') Annual General Meeting Statement Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, is holding its Annual General Meeting (`AGM') later today.At the meeting, CEO Steven Snead will make the following statement: "In 2012, a number of major milestones were achieved, all of which are key todelivering on the Board's overriding objective to build a significant USonshore focused oil and gas company. These include the acquisition ofapproximately 13,000 net mineral acres in proven hydrocarbon formations withover 600 potential drilling locations; a 46% increase in the number of wells inwhich the Company has an interest, totalling 101; the participation in wellswith larger working interests; fifteen-fold growth in daily net production to122.5 boepd as at end 2012; and the commencement of drilling of a first well asoperator. "With a near 98% success rate to date, thanks largely to a focus on provenliquids rich plays and participating alongside established operators, theincreased drilling activity and size of interests in wells during the yeartranslated into a near trebling in full year revenues and, as reported in thelatest CPR, a 422% increase in the value of our 3P reserves to US$94 million. "The directors strongly believe the substantial growth seen in terms ofproduction, revenues and reserves in 2012 will be repeated in the current year.Firstly, revenues from a large portion of production brought on stream at theend of 2012 are now being received and booked in 2013. Secondly, the number ofwells in which Magnolia has an interest has increased to 154 since January, 112of which are producing and generating revenues. Thirdly, we continue to receivenumerous well proposals on our acreage which we expect to lead to Magnolia'sparticipation in new drilling over the course of the year. "In addition to the above, we are participating in wells with larger interestssuch as the 12.5% working interest in the recently announced Blaser well,targeting the Mississippi Lime formation in Oklahoma, and the Marathon Oiloperated Gustafson and Helgeson wells, targeting the prolific Bakken/ThreeForks Sanish plays in which we have a 5% interest. At the same time, we expectto add further to Magnolia's acreage as a result of our on-going leasingactivity. Thanks to management's experience and intimate knowledge of theprocesses involved in securing leasehold title, we actively manage Magnolia'sportfolio of leases, which is likely to see us acquire further acreage and, insome cases where we hold significant interests, farm down to third parties.Selling interests in leases generates additional revenues that can be recycledinto drilling activity with the added benefit of managing risk at the portfoliolevel. "We intend to commission another Competent Person's Report at the end of 2013which will provide an independent assessment of the progress made during thecurrent year in proving up Magnolia's reserves. Based on the new wellparticipations and initial production results we have reported since January,we expect to significantly add to the 122.5 boepd and also the 1.367 millionbarrels of oil and condensate and 4,513 MMcf of natural gas that were recentlyclassified as 2P reserves by the Competent Person as at 1 January 2013. Thesefigures not only represent a near 20-fold increase on the 68,700 barrels and249.8 MMcf reported at the time of our Admission to AIM in November 2011 butalso serve to underpin our current market valuation. "Thanks to the combination of an exceptional growth profile, an excellentdrilling success rate, and a proven management team, I am confident that wewill substantially grow Magnolia's production and reserves in the years aheadand, in the process, generate significant value for all our shareholders." * * ENDS * * For further information on Magnolia Petroleum Plc visitwww.magnoliapetroleum.com or contact the following: Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Jo Turner / James Cairn Financial Advisers LLP +44 20 7148 7900Caithie John Howes / Alice Northland Capital Partners +44 20 7796 8800Lane / Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance +44 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 20 7236 1177 Ltd Notes: Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas explorationand production company. Its portfolio includes interests in 110 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma. Summary of Wells Category Number of wells Producing 112 Being Drilled / Completed 15 Elected to participate / waiting to 27spud TOTAL 154 This table excludes four out of six wells acquired as part of the acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.