Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 23 October 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') Excellent Initial Production at Six Devon Energy Operated Wells in Oklahoma Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report initial productionrates for six wells in the Woodford and Mississippi Lime formations, Oklahoma.Magnolia holds a 4.1% net revenue interest in each of these Devon Energyoperated wells which, combined, add 96 boepd to Magnolia's net production. Thisupdate is in line with the Company's strategy to rapidly build productionthrough drilling and prove up the reserves on its leases. Commencement of production at the following wells: Well Name Targeted Operator Gross IPR Magnolia's Net IPR Formation NRI% Lemmons 5 Woodford, Devon Energy 344 boepd 4.1 14 boepdWH Oklahoma Lemmons 6 Mississippi Devon Energy 328.5 boepd 4.1 13.5 boepdMH Lime, Oklahoma Rothermel 2 Mississippi Devon Energy 159 boepd 4.1 6.5 boepdMH Lime, Oklahoma Rothermel 3 Mississippi Devon Energy 530 boepd 4.1 22 boepdMH Lime, Oklahoma Rothermel 4 Mississippi Devon Energy 339.5 boepd 4.1 14 boepdMH Lime, Oklahoma Marion 1-23 Woodford, Devon Energy 641 boepd 4.1 26 boepdHW Oklahoma All the above wells have been drilled on the same spacing unit to maximise therecovery of reserves. Production from the above wells is expected to declinefrom initial elevated levels which are based on a 10 day average rate. Rita Whittington, COO of Magnolia, said, "The excellent initial productionrates achieved demonstrate the low geological risk associated with drilling onunits where production has been established, and also the presence of multipleproductive formations on our leases, in this case the Woodford and MississippiLime. Drilling infill wells consecutively on producing leases not only providesscope for a significant increase in production, as today's combined 2,342 boepdgross highlights, but also reduces the relatively cheap costs to drill wells inOklahoma. This improves the already attractive economics of drilling to theWoodford and Mississippi Lime, both of which have low breakeven oil pricescompared with other US onshore formations. With such healthy margins andexcellent initial results, we expect to participate in more infill drilling onour leases, which as today's rates show have the potential to add materially toour existing production even after taking into account decline rates." ** ENDS ** Glossary `boe' means barrels of oil equivalent: a unit of energy based on theapproximate energy released by burning one barrel (42 US gallons or 158.9873litres) of crude oil. There are 42 gallons (approximately 159 litres) in one barrel of oil, whichwill contain approximately 5.8 million British Thermal Units (MBtus) or 1,700kilowatt hours (kWh). The value is necessarily approximate as various grades ofoil have slightly different heating values. BOE is used by oil and gascompanies in their financial statements as a way of combining oil and naturalgas reserves and production into a single measure. `boepd' means barrels of oil equivalent per day `bopd' means barrels of oil per day, Abbreviation for barrels of oil per day, acommon unit of measurement for volume of crude oil. The volume of a barrel isequivalent to 42 US gallons `IPR' means initial production rates `NRI' means net revenue interest `WI' means working interest 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 Caithie Cairn Financial Advisers LLP +44 20 7148 7900 John Howes / Alice Lane Northland Capital Partners +44 20 7382 1100 Limited Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177 Notes Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas explorationand production company. Its portfolio includes interests in 169 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 169 Waiting on first sales / IP rates 2 Being drilled / completed 10 Elected to participate / waiting to 50spud TOTAL 231