Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 8 January 2015 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Updatefor the Period Ended 31 December2014 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 * 15 new wells commenced production bringing the total to 176 producing wells as at end of Q4 2014 - a further 48 at various stages of development * Elected to participate in 14 new wells in low cost formations including the Mississippi Lime and Woodford in Oklahoma * Strong initial production rates from six Devon Energy operated wells drilled on the same spacing unit in Oklahoma added 96 boepd to Magnolia's net production - highlights low risk high impact potential of infill drilling to rapidly increase production and maximise the recovery of reserves * Doubling of production from Magnolia's 100% owned and operated Roger Swartz #1 vertical well to an average of 12.2 bopd from the Mississippi Lime following successful fracture stimulation * + US$79,400 cost of the frac expected to be recovered in approximately 12 months as production is not expected to experience significant decline from current rates * Permits secured to drill two vertical wells in Oklahoma in 2015: the Roger Swartz #2 and the Shimanek #2 targeting multiple conventional payzones, including the Mississippi Lime/Chat, Redfork Sand and the Lower Skinner Sand Outlook * New wells due to come into production in Q1 2015 * Drilling 94% owned Roger Swartz #2 and the Shimanek #2 vertical wells in 2015 * Additional participations in new wells and infill drilling with leading operators expected * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio * Updated Competent Person's Report to be released in Q1 2015 - as at 1 July 2014 proven reserves stood at 719 Mbbl of oil and condensate and 2,093 MMcf gas Magnolia COO, Rita Whittington said, "With 15 new wells commencing productionduring the quarter, our total producing well count now stands at 176. Inaddition, we elected to participate in 14 new wells alongside establishedoperators and secured permits to drill two vertical wells targetingconventional payzones in 2015. We therefore continue to make excellent progresstowards delivering on our objective to rapidly build Magnolia's production andprove up the reserves on our leases, covering over 13,500 net mineral acres inhistoric US onshore formations. Against a backdrop of heightened oil pricevolatility, we view the continued high level of activity in our key areas ofinterest as testament to the attractive economics of drilling proven plays inOklahoma, where costs to drill are relatively low, access to infrastructure isexcellent, and payback credentials are strong." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Lemmons 5 WH Woodford, Producing 4.1 Devon Energy Oklahoma Lemmons 6 MH Mississippi Lime, Producing 4.1 Devon Energy Oklahoma Rothermel 2 MH Mississippi Lime, Producing 4.1 Devon Energy Oklahoma Rothermel 3 MH Mississippi Lime, Producing 4.1 Devon Energy Oklahoma Rothermel 4 MH Mississippi Lime, Producing 4.1 Devon Energy Oklahoma Marion 1-23 HW Woodford, Producing 4.1 Devon Energy Oklahoma Partagas 1-1H Mississippi Lime, Producing 3.8 Cisco Oklahoma Coffman 26-27-111H Mississippi Lime, Producing 1.2 Chesapeake Oklahoma Energy Roger Swartz #2 Mississippi Lime/ Waiting to spud 76.4 Magnolia Chat, Redfork Petroleum Sand and the Lower Skinner Sand, Oklahoma Shimanek #2 Mississippi Lime/ Waiting to spud 76.4 Magnolia Chat, Redfork Petroleum Sand and the Lower Skinner Sand, Oklahoma Van Meadows 1H Mississippi Lime, Waiting to spud 6.77 Dorado E&P Oklahoma Partners B&W 1-24H Mississippi Lime/ Waiting to spud 1.23 B&W Woodford, Oklahoma Woodrell 1-15 Mississippi Lime, Waiting on frac 2.64 Greg Hall(vertical) Oklahoma Oil Co. Nighswonger Farms 2 Mississippi Lime, Drilling 2.42 Sandridge Oklahoma Energy Yani 1-31H Hunton, Oklahoma Drilling 2.32 Equal 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 176 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 176 Waiting on first sales / IP rates 1 Being drilled / completed 9 Elected to participate / waiting to 38spud TOTAL 224