Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 18 September 2014 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 Woodford and Mississippi Lime, Oklahoma. This updateis in line with the Company's strategy to rapidly build production throughdrilling and prove up the reserves on its leases. Commencement of production at the following well: Well Name Targeted Operator Gross IPR Magnolia's Net IPR Formation NRI% Cummings 2H Mississippi Chesapeake 333 boepd 3.34 11 boepd Lime, Energy Oklahoma The Company is participating in the following two wells at a net aggregate costof US$245,223: Well Name Targeted Operator Magnolia's Net Cost to Status Formation WI/NRI% Magnolia Nighswonger Mississippi Sandridge 3.125/2.242 US$146,535 WaitingFarms 2 Lime, Oklahoma Energy to spud Edwards Mississippi Devon 1.5625/1.25 US$98,688 Waiting Lime, Woodford, Energy on IP Oklahoma rates Rita Whittington, COO of Magnolia, said, "At 333 boepd, the initial productionrate of the Cummings 2H, an increased density well drilled on the same spacingunit as the Cummings 31-28-12-1H 2H which itself recorded an IPR of 525 boepd,demonstrates the potential of the Mississippi Lime formation, and therelatively low risk attached to drilling offset wells in already producingsections. As previously reported, we are seeing a pick-up in increased densitywell proposals, such as today's Sandridge Energy operated Nighswonger Farm 2well, as operators increasingly look to maximise the recovery of reserves onindividual sections. Thanks to our new and improved US$6m credit facility, ourfast growing production-generated revenues and the US$1m we recently receivedfor consulting services, Magnolia is in excellent shape to continueparticipating in drilling activity alongside leading operators, and in theprocess prove up the reserves on our leases." The Company only provides details and updates for wells in which it has aworking interest of 1.5% or more. The Summary of Wells table at the end of eachrelease includes all wells in which Magnolia has an interest and is updated asand when a change in status occurs for all wells. ** 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 161 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 161 Waiting on first sales / IP rates 8 Being drilled / completed 6 Elected to participate / waiting to spud 53 TOTAL 228