Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 14 July 2014 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Update for the Period Ended 30 June 2014 Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, is pleased to announce a quarterly update on its operationsacross proven and producing US onshore hydrocarbon formations, including theBakken/Three Forks Sanish in North Dakota and Montana, and the Mississippi Limeand the Hunton/Woodford in Oklahoma. Quarter Highlights * 155 producing wells as at end of Q2 2014 - an increase of four during the period * Elected to participate in ten new wells including those with larger than average interests - 4.1% net revenue interest (`NRI') in the Rothermel 2MH & 4MH and the Lemmons 6MH & 5MH wells targeting the Mississippi Lime and Woodford formations, Oklahoma * Strong initial production rates from wells drilling to the Woodford which is increasingly being viewed as more prospective than the Mississippi Lime formation - the Parmley 1-1 WH well (445 boepd; 12.187% NRI) and Bolay well (542 boepd; 2.06% NRI) * Borrowing base limit of Credit Facility raised from US$2.1 million to US$2.75 million to accelerate drilling activity and prove up reserves on leases following increase in the value of PDP reserves to US$8.416 million * 244% increase in full year revenues to US$2.443 million, in line with market expectations and full year EBITDA of US$975,622 significantly ahead of market expectations Outlook * New wells due to come into production in Q3 2014 - including several infill wells on the Company's leases held by production in North Dakota and Oklahoma to maximise recovery of reserves on individual spacing units * Further participations in new wells and infill drilling with leading operators expected * Plans to drill vertical wells targeting Mississippi Lime `wedges' identified on the Company's leases in Oklahoma * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio * Updated Reserves Report (`CPR') commissioned to take into account revised view of the Mississippi Lime as being made up of multiple wedges rather than a uniform resource Magnolia COO, Rita Whittington said, "As at the end of the quarter Magnolia hadinterests in 227 wells in proven US onshore formations, 155 of which areproducing with the remainder at various stages of development. A number of thenew wells we announced during the period are infill wells to maximise therecovery of reserves on leases that are held by production. We have aboveaverage interests in several of these and, along with the lower associatedexploration risk, we are confident they will materially add to Magnolia'sproduction and Proven Developed reserves. Together with the high level ofdrilling proposals we are receiving across our portfolio of US onshore leases,we expect Magnolia's revenues to continue to grow strongly, building on the240% increase to US$2.44 million we reported during the quarter for FY2013." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Parmley 1-1WH Mississippi Lime, Producing 12.187 Devon Energy Woodford, Oklahoma Rothermel 1-3WH Woodford, Drilling 4.1 Devon Energy Oklahoma Rothermel 2MH Mississippi Lime, Drilling 4.1 Devon Energy Oklahoma Rothermel 3 MH Mississippi Lime, Waiting to spud 4.1 Devon Energy Oklahoma Rothermel 4 MH Mississippi Lime, Drilling 4.1 Devon Energy Oklahoma Lemmons 6MH Mississippi Lime, Drilling 4.1 Devon Energy Oklahoma Lemmons 5WH Woodford, Waiting to spud 4.1 Devon Energy Oklahoma Cummings Mississippi Lime, Waiting to spud 3.34 Chesapeake31-28-12-1H Oklahoma Energy Cummings 2H Mississippi Lime Drilling 3.34 Chesapeake Energy Dunn 1-15 Wilcox, Waiting to spud 2.64 Greg Hall, Mississippi Lime, BG Energy Oklahoma Partners Bolay #1-19HW Woodford, Producing 2.059 Devon Energy Oklahoma Moe Jerome 1WH Woodford, Waiting to spud 1.56 Chaparral Oklahoma Giles 1-6H Mississippi Lime, Producing 1.22 Red Fork Oklahoma Energy 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. The four Skunk Creek wellsare included due to their combined costs and being located in North Dakota. * * ENDS * * 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 7796 8800Luke Cairns 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 155 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 155 Being Drilled / Completed 23 Elected to participate / waiting to 49spud TOTAL 227