Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 22 October 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations Update Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to provide an operations updateacross its portfolio of interests in proven US onshore formations including theBakken, North Dakota and Mississippi Lime, Oklahoma. This update is in linewith the Company's strategy to rapidly build production through drilling and inthe process prove up the reserves on its leases. Production Update for the JoAnn1H-18 and Murl#1 wells Well Name Targeted Operator Gross IPR Magnolia's Net IPR Formation NRI% JoAnn1H-18 Woodford, Newfield 1,170 boepd 0.445 5.2 boepd Oklahoma Exploration Murl#1* Wilcox, Basis 87 boepd 3.047 2.65 boepd Oklahoma *Update to previous IPR of 60 boepd reported on 30 September 2013 Participation in new wells The Company is participating in the following four wells at an aggregate netcost of up to US$952,702: Well Name Targeted Operator Magnolia's WI Net Cost to Formation /NRI% Magnolia Parmley 1-1WH Mississippi, Devon Energy Up to 18.75/ Up to Woodford, 14.062 US$690,375 Oklahoma ?1-23HW Woodford, Devon Energy 4.687/3.516 US$173,391 Mississippi Lime, Oklahoma ?1-27HW Woodford, Devon Energy 1.25/0.937 US$46,238 Mississippi Lime, Oklahoma Northcut Hunton, Oklahoma Orca 1.563/1.172 US$42,698WildWest 1-1H Operating On-going Leasing Activity Magnolia's total acreage in the Mississippi Lime, Hunton, Woodford and Wilcoxformations in Oklahoma now stands at 5,800 net mineral acres and, in line withits strategy to rapidly build net production and reserves, the Company'sworking/net revenue interest has increased in the following two previouslyannounced wells: Well Targeted OLD WI/NRI% NEW WI/NRI % Operator Formation Great White 1-14H Mississippi 10/7.5 13.33/10.21 Red Fork Lime, Oklahoma TBN 1-31H Mississippi 3.345/2.51 3.90/2.92 Red Fork Lime, Oklahoma Rita Whittington, COO of Magnolia, said, "The four new wells announced todaywith an aggregate net cost of up to US$952,702 highlight the high impactproposals we are receiving to drill on our leases alongside establishedoperators such as Devon Energy. Thanks to the recently secured US$5m creditfacility and our rapidly growing revenues which, year on year grew 223% toUS$910,721 at the half year stage, we are well placed to materially add to the178 wells we now have an interest in proven US onshore plays such as theMississippi Lime and Woodford, Oklahoma. "Our on-going leasing activity will see us build on the 5,800 net mineral acreswe now hold in Oklahoma and also increase our interests in existing wells, aswe have done with the Great White (13.33%). We are now in a position toaccelerate the roll-out of our strategy of recycling capital into new wells toincrease our production, which as at 1 August 2013 stood at 214 boepd, prove upthe reserves on our leases and generate substantial value for shareholders." Existing well updates The Company has been informed by the relevant operators of a change in statusin the following wells in which it is participating: Well Targeted Status NRI % Operator Formation Great White Mississippi Lime, Waiting on IP results 10.21 Red Fork1-14H Oklahoma Reta#1** Bois D Arc, Waiting on IP results 2.31 Basis Chimney Hill, Viola, Simpson, Oklahoma Bolay #1-19HW Woodford, Drilling 1.55 Devon Energy Oklahoma Jake 2-11-6H Bakken, North Undergoing frac 1.465 Statoil Dakota Jake 2-11-3TFH Three Forks Preparing to frac 1.465 Statoil Sanish, North Dakota Jake 2-11-4H Bakken, North Preparing to frac 1.465 Statoil Dakota Jake 2-11-5TFH Three Forks Preparing to frac 1.465 Statoil Sanish, North Dakota **Vertical well ** 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 Limited +44 20 7796 8800Luke Cairns 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 125 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 125 Being Drilled / Completed 20 Elected to participate / waiting to spud 33 TOTAL 178