Magnolia Petroleum Regulatory News (MAGP)

MAGNOLIA PETROLEUM PLC - Participating in 16 New US Onshore Wells

PR Newswire

London, June 1

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

2 June 2015

Magnolia Petroleum Plc (‘Magnolia’ or ‘the Company’)

Operations Update

Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce it is participating in 16 new wells across its leases in proven US onshore formations including the Bakken, North Dakota and Woodford and Mississippi Lime, Oklahoma, at a net aggregate cost of US$686,335. This update is in line with the Company’s strategy to rapidly build production through drilling and to prove up the reserves on its leases, which were independently valued at US$26.65 million as at 1 January 2015.

Rita Whittington, COO of Magnolia, said, “We are pleased to see a number of new well proposals on our U.S. onshore leases from established operators including Chesapeake Energy and Whiting Petroleum. The new wells highlight the value and diversity of our acreage and the multiple payzones that are being targeted. A number are low cost vertical wells targeting conventional plays. Others are horizontals targeting unconventional hydrocarbons including increased density wells on leases where production has been established, such as the Skunk Creeks wells.

“The Skunk Creek wells also demonstrate how far costs have fallen to drill horizontal wells in the Bakken/Three Forks Sanish in North Dakota in the last 18 months. In January 2014, Magnolia participated in four wells on the same lease, each of which had a total cost of over US$9 million. These latest Skunk Creek wells are estimated to have a gross cost of US$6,760,000 each. Such a dramatic fall in costs has clear implications for payback, and goes a long way to mitigating the impact of the lower oil price environment.

“Following the recent successful fundraise together with our positive operating cash flow, Magnolia is also preparing to operate and drill two low cost 94% owned vertical wells and is well capitalised for further non-operated well proposals in the coming months. These upcoming wells will add to daily production and continue the growth seen in the level of our proven reserves, which have increased to 985 Mbbl of oil and 2,905 MMcf gas as at 1 January 2015 from 46.6Mbbl and 198.2 MMcf in October 2011. I look forward to providing further updates on our progress in due course.”

** ENDS **

Glossary

‘MBbl’ means Thousand barrels

‘MMcfd’ means Million Cubic Feet per Day

‘NRI’ means net revenue interest

‘WI’ means working interest

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

Notes

Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration and production company. Its portfolio includes interests in 193 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the substantial and proven Woodford and Hunton formations in Oklahoma.

Summary of Wells