Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 20 December 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Excellent Initial Production at 10% Owned Mississippi Lime Well, Oklahoma Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report an initial productionrate of 455 boepd for the Great White 1-14H well (`the Great White') which isproducing from the Mississippi Lime formation, Oklahoma. Magnolia holds a10.21% net revenue interest in the Great White which is operated by Red Fork.This update is in line with the Company's strategy to rapidly build productionthrough drilling and in the process prove up the reserves on its leases. Commencement of production for the following two wells Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI Formation Great Mississippi Red Fork 455 boepd 10.21% 46.5 boepdWhite Lime,1-14H Oklahoma Campbell Mississippi Truevine 390 boepd 0.089% 0.35 boepd1-17H Lime, Oklahoma Rita Whittington, COO of Magnolia, said, "As a result of the initial productionrates for the Great White and the recently reported four Statoil operated Jakewells, over 200 boepd have been added to our net daily production this monthalone. Bearing in mind our average daily production stood at 214 boepd as at 1August 2013, we expect our next CPR, due in Q1 2014, to report anothersignificant increase in production, even after expected decline rates are takeninto account. "Rapidly growing net production is a key part of our strategy. Combined withthe recently secured US$5m debt facility, the associated higher revenues fromincreased production fund Magnolia's participation in new wells with leadingoperators, as we systematically prove up the reserves on our leases in provenUS onshore formations, and in the process generate value for shareholders." ** 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 7796 8800Luke Cairns 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 136 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 136 Being Drilled / Completed 9 Elected to participate / waiting to 35spud TOTAL 180