Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 4 March 2014 Magnolia Petroleum Plc (`Magnolia' or `the Company') Participation in Two New Wells in Oklahoma Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to announce its participation intwo new wells in Oklahoma, in line with its strategy to rapidly buildproduction and prove up the reserves on its leases in oil rich formations,including the Bakken in North Dakota and Woodford and Mississippi Lime inOklahoma. Participating in the following two wells at an aggregate net cost of US$263,708: Well Name Targeted Formation Operator Magnolia's Net Cost to WI/NRI% Magnolia Jimmy 1-28H Woodford, Oklahoma Red Fork 3.777/3.022 US$139,662 Energy Peters 1-27H Woodford, Oklahoma Paul Gillham 5.208/4.167 US$124,046 Increase in interest in Skunk Creek wells, North Dakota & Estimate of Reserves The Company has increased its interest in the spacing unit in North Dakotawhere the Skunk Creek 14H and Skunk Creek 15H wells are currently producingfrom the Bakken and Three Forks Sanish formations. Magnolia now holds a 0.90%and 0.675% working/net revenue interest (previously 0.60% and 0.45%respectively) in both of the above wells and also the four infill wells thatare to be drilled on the unit in the near term, as detailed in the announcementof 20 January 2014. The operator, Kodiak Energy, has estimated a total of 4.976 million barrels ofoil and 2.88 Bcf of gas can be recovered from the Skunk Creek spacing unit bydrilling eight wells, four each to the Bakken and Three Forks Sanishformations, based on the per well estimate provided in Table 1 below. The totalestimated level of reserves attributable to Magnolia on the Skunk Creek spacingunit is therefore 33,600 barrels of oil and 19.44 MMCF of gas. Rita Whittington, COO of Magnolia, said, "Jimmy and Peters bring the totalnumber of wells in proven US onshore formations in which we have an interest to205, more than three times the number at the time of our Admission to AIM inNovember 2011. We have over 600 potential drilling locations on our leases, andwith the multiple proposals we are receiving to participate in new wells, weexpect to build on the excellent growth seen to date. Meanwhile, on-goingleasing activity allows us to add to the 13,500 net mineral acres we hold,including those leases in which we already have an interest such as SkunkCreek. The operator's estimate of recoverable reserves at Skunk Creekillustrates the prolific nature of the Bakken and Three Forks Sanish formationsand bodes well for our other leases in North Dakota including the Statoiloperated Jake wells. I look forward to providing further updates on ourprogress in due course. Table 1: Kodiak Energy's estimates for the recovery of reserves at the SkunkCreek Spacing unit, North Dakota Middle Bakken Three Forks Sanish Estimated Ultimate Oil Recovery 790 454(MBO) Estimated Ultimate Gas Recovery 457 263(MMCF) ** ENDS ** Glossary `Bcf' means billion cubic feet of gas `MBO' means thousand barrels of oil `MMCF' means million cubic feet of gas `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 +44 207 382 1100Luke 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 142 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 142 Being Drilled / Completed 16 Elected to participate / waiting to spud 47TOTAL 205