Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 11 December 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Excellent Initial Production at Four Statoil Operated Wells in North Dakota Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report initial productionrates for four Jake wells in the Bakken and Three Forks Sanish Formations,North Dakota. Magnolia holds a 1.465% net revenue interest in each of theseStatoil operated wells which, combined, add 156 boepd to Magnolia's netproduction. This update is in line with the Company's strategy to rapidly buildproduction through drilling and in the process prove up the reserves on itsleases. Commencement of Production at four wells in North Dakota Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI% Formation Jake 2-11 Bakken, North Statoil 3,315 bopd 1.465 49 bopd6H Dakota Jake 2-11 Three Forks Statoil 2,430 bopd 1.465 36 bopd5TFH Sanish, North Dakota Jake Bakken, North Statoil 2,543 boepd 1.465 37 boepd2-11-4H Dakota Jake Three Forks Statoil 2,300 boepd 1.465 34 boepd2-11-3TFH Sanish, North Dakota Rita Whittington, COO of Magnolia, said, "As with the previously reported twoJake wells, also operated by Statoil, all four initial production ratesreported today are among the best in our portfolio of 133 producing wells inproven US onshore formations, such as the Bakken and Three Forks Sanish, NorthDakota. Our share of production from these four wells alone totals 156 boepd,and as a result we expect our next CPR, due in Q1 2014, to report another majorincrease in Magnolia's daily production which, as at 1 August 2013, stood at214 boepd. "As with all wells, production will naturally decline from these reportedlevels before stabilising at lower rates. Such high initial production rateshowever are hugely beneficial to our strategy, as it results in the swiftrecovery of costs and allows revenues to be reinvested into new wells to proveup the reserves on our leases covering over 13,500 net mineral acres. With afurther 47 wells under development including those in which Magnolia has largerworking interests, we expect the excellent growth seen to date in our proven(P1) reserves, which as at 1 August 2013 was assigned a value of US$40.721m, tocontinue." ** 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 133 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 133 Being Drilled / Completed 12 Elected to participate / waiting to 35spud TOTAL 180