Magnolia Petroleum Regulatory News (MAGP)

MAGNOLIA PETROLEUM PLC - Operational Update

PR Newswire

London, February 5

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas

5 February 2013

Magnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration andproduction company, is pleased to report an update on its activities in provenUS onshore formations including the Bakken/Three Forks Sanish, North Dakota andthe Mississippi Lime in Oklahoma.

Thomason 10-27-12 (`Thomason') and Lois Rust 7-27-12 1H (`Lois Rust') wells, Oklahoma

Following the announcement on 7 November 2012 of the commencement of work byChesapeake Energy (`Chesapeake'), the operator, to increase the sales linecapacity on the Thomason and Louis Rust wells, the Company has been informed byChesapeake that production recommenced at the Thomason horizontal well on 30January 2013. As part of the same work programme, production at Lois Rust isdue to recommence by the end of this week. The impact of the work by theoperator will be known in the forthcoming weeks.

Montana Acreage

Following Magnolia's acquisition of 7,886 net mineral acres in Montana inNovember 2012 and January 2013, the Company notes that Apache Corporation(`Apache') has recently filed with the Montana Oil and Gas Commissionapplications to space a further 23 sections in Daniels County in preparationfor possible future drilling activity. One of these spaced units is located onMagnolia's acreage. The remaining spaced units are either surrounding and/oradjacent to Magnolia's leases.

Apache had previously announced that Phase one of its planned drillingoperations targeting the Bakken formation in Daniels County, Montana, wouldconsist of five horizontal wells. The Magnolia Directors believe that Phase onehas been completed, however the results may not be known for some time.

Existing Well Updates

Production has commenced at the Transpro operated Walker 2-29 vertical well inthe Viola formation, Oklahoma, in which Magnolia has a 1.1113% working interest(`WI') and 0.8335% NRI. This is an increased density well to the Walker 1-29 tooptimise the recovery of all the reserves.

* Gross initial production rate at 17 boepd (0.14 boepd net)

* Expected payout (recovery of costs) in 23 months on costs of US$8,539

The Company has been informed also by the relevant operators of a change instatus in the following wells:

*From time to time, the Company elects to participate in wells with relativelysmall working/net revenue interests. This allows Magnolia to gain access tocritical well information which is then used to further enhance itsunderstanding of the relevant formation.

Magnolia COO, Rita Whittington said, "The successful drilling of the Walkerwell to the Viola formation highlights the multiple producing reservoirs inOklahoma, alongside the better known Mississippi Lime and Woodford/Hunton thatcan be targeted and commercially produced. Over the last twelve months, we haveacquired over 4,300 net mineral acres in Oklahoma, and we will continue toparticipate in drilling wells on our leases to prove up our reserves and, inthe process, create value.

"We are closely monitoring Apache's progress in Montana where we have acquired7,886 net mineral acres in an area we believe has the potential to become asignificant extension for production from the prolific Bakken/Three ForksSanish formations. Our Montana acreage is in line with our strategy ofidentifying new plays early, providing Magnolia with material exposure ataffordable valuations. Combined with further production news due soon, this isan exciting period for the Company and I look forward to providing updates onour progress."

`bopd' means barrels of oil per day

`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 liters) 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

For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following:

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.