Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 15 July 2013 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Updatefor the period ended 30 June2013 Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, announces a quarterly update on its operations acrossproven and producing US onshore hydrocarbon formations, including the Bakken/Three Forks Sanish in North Dakota and Montana, and the Mississippi Lime andthe Hunton/Woodford in Oklahoma. Quarter Highlights * 22% increase in number of producing wells to 117 during Q2 2013 - current total 118 * Reported initial production rates (IPRs) for 15 wells totalling 110 boepd net to Magnolia (note existing production from these wells will be lower due to decline rates) * + Includes Gustafson 31-30H well (50boepd net to Magnolia) but not Helgeson 41-30H well (57 boepd net to Magnolia) reported post quarter + Includes Roger Swartz #1, first well drilled by Magnolia in Oklahoma as operator (100% owned), which commenced production from the Mississippi Lime formation, with an IPR of 17 bopd * Elected to participate in 27 new wells * Participating in wells with higher than average net revenue interests as per strategy: Blaser (9.375%); Great White (7.5%) * Acquired interests in six producing wells in the Mississippi Lime * Acquired 719 net mineral acres in Mississippi Lime, Oklahoma - current total 5,226.37 * Updated Competent Person's Report (`CPR') by Moyes & Co. highlights major increase in 2P reserves to 1.367 million barrels of oil and condensate and 4,513 MMcf of natural gas as at 1 January 2013 compared to 68,700 barrels and 249.8 MMcf as at 1 October 2011 * + 422% increase in value of 3P reserves to US$94million since October 2011 - only covers approximately 5,500 net acres out of a total of 13,500 acres in proven formations + Production as at 31 December 2012 stood at 122.5 boepd * Raised £1.5 million during the period via a Placing Outlook * A number of new wells due to come into production in Q3 2013 * Multiple well proposals being received - expected to lead to further participations with leading operators * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio * Updated CPR to be commissioned in Q1 2014 - to include estimates for the Company's average production rates and reserves in the 1P, 2P and 3P categories as at year end 2013 Magnolia COO, Rita Whittington said, "The quarter under review saw a number ofmilestones achieved. Roger Swartz, our first well drilled as operator, wassuccessfully brought into production, while the Gustafson well in the Bakkenwas the first to add 50 boepd net to Magnolia, based on the initial productionrates reported. At the portfolio level, we now have an interest in 165 wellsthat are either producing or at various stages of development in proven USonshore formations, compared to 134 at the end of the first quarter. "The CPR published in April showed our daily production as at 31 December 2012at 122.5 boepd and assigned a US$94m value to our 3P reserves. With much moreactivity to come including initial production rates for a number of wells inwhich we have larger than average interests as well as our participation inadditional drilling, the second half of the year promises to be one in whichfurther significant progress in terms of production and reserves growth will bemade." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Roger Swartz #1 Mississippi Producing 81.25 Magnolia Lime, Oklahoma Petroleum Blaser 1-10H Mississippi Drilling 9.375 Cummings Lime, Oklahoma Great White 1-14H Mississippi Waiting to spud 7.5 Red Fork Lime, Oklahoma Gustafson 31-30H Bakken, North Producing 4.071 Marathon Oil Dakota Helgeson 41-30H** Bakken, North Producing 4.071 Marathon Oil Dakota Sullins 1-6MH Mississippi Completed 3.718 Devon Energy(formerly Miss Lime, OklahomaFrank 1-6MH) Murl#1 Wilcox, Oklahoma Waiting to spud 3.047 Basis Joan 1-21 Mississippi Producing 2.812 Tessara Energy Lime, Oklahoma Williams 1H-27 Woodford, Waiting to spud 2.5 Highmount Oklahoma Nighswonger Farms Mississippi Producing 2.242 Slawson2815 1-13H Lime, Oklahoma Exploration Finders 1-25H Mississippi Producing 1.848 Redfork Lime, Oklahoma JKL 1-08H Mississippi Awaiting 1.719 Devon Energy Lime, Oklahoma fracture stimulation Jake 2-11 # 1H Bakken, North Awaiting 1.465 Statoil Dakota fracture stimulation Jake 2-11 # 2TFH Three Forks Awaiting 1.465 Statoil Sanish, North fracture Dakota stimulation Jake 2-11-3TFH Three Forks Waiting to spud 1.465 Statoil Sanish, North Dakota Jake 2-11-4H Bakken, North Waiting to spud 1.465 Statoil Dakota Jake 2-11-5TFH Three Forks Waiting to spud 1.465 Statoil Sanish, North Dakota Jake 2-11-6H Bakken, North Waiting to spud 1.465 Statoil Dakota Voise 1-10H Mississippi Producing 1.25 Devon Energy Lime, Oklahoma Wolf 1H-25 Mississippi Producing 1.25 Highmount Lime, Oklahoma Giles 1-6H Mississippi Waiting to spud 0.937 Red Fork Lime, Oklahoma Omega 1-33H Hunton, Oklahoma Waiting to spud 0.799 Equal Energy County Line 33-4 Wilcox/Viola/ Waiting to spud 0.75 Phoenix Oil Simpson, and Gas Oklahoma Grant 1H-10 Mississippi Producing 0.719 Highmount Lime, Oklahoma Sympson 1-6H Woodford, Completed 0.711 Continental Oklahoma Resources Cordray-Ritter Mississippi Producing 0.597 Chesapeake4-28-14 1H Lime, Oklahoma Energy Forrest 1-8H Woodford, Producing 0.586 Continental Oklahoma Resources Green Acres 1-36H Woodford, Waiting to spud 0.559 Continental Oklahoma Resources JKL 1-04H Mississippi Waiting on 0.555 Devon Energy Lime, Oklahoma initial production rates McSwain 1H-12 Mississippi Producing 0.51 Highmount Lime, Oklahoma Mack 10-27-17 1H Mississippi Producing 0.505 Chesapeake Lime, Oklahoma Peck 1-5H Mississippi Producing 0.502 Range Lime, Oklahoma Resources Condit 1-5H Woodford, Producing 0.5 Continental Oklahoma Resources Louis 7-2MH Mississippi Waiting to spud 0.449 Calyx Lime, Oklahoma JoAnn 1H-18 Woodford, Awaiting 0.445 Newfield Oklahoma fracture Exploration stimulation Jo Lynn 18-1WH Woodford, Waiting to spud 0.348 Devon Energy Oklahoma Little 1H-18H Mississippi Waiting to spud 0.293 Chaparral Lime, Oklahoma Hufnagel 1H-34X Woodford, Waiting to spud 0.293 Newfield Oklahoma Paul 1-27H Mississippi Waiting to spud 0.292 Orion Lime, Oklahoma Rock 8-2N Mississippi Waiting to spud 0.25 Range Lime, Oklahoma Resources Rabke 1-24H36 Woodford, Waiting to spud 0.247 XTO Oklahoma Betty 22-24-10 1H Mississippi Producing 0.246 Chesapeake Lime, Oklahoma Energy Ripley 1H-28 Mississippi Producing 0.137 Highmount Lime, Oklahoma Louis#7-1 WX Mississippi Producing 0.12 Calyx Lime, Oklahoma Wolf 1H-21 Mississippi Producing 0.09 Highmount Lime, Oklahoma Campbell 1-17H* Mississippi Waiting to spud 0.089 Truevine Lime, Oklahoma BB Rice~2 Bakken, North Producing 0.088 Hess Dakota Corporation BB Rice#3 Three Forks Producing 0.088 Hess Sanish, North Corporation Dakota TBN 1-32H* Mississippi Waiting to spud 0.088 Red Fork Lime, Oklahoma McClure 36-2H Mississippi Producing 0.055 Highmount Lime, Oklahoma Smith Trust 1-2H* Woodford, Waiting to spud 0.049 Marathon Oil Oklahoma Gritz 1-7H Hunton, Oklahoma Waiting on 0.035 Husky Ventures initial production *From time to time, the Company elects to participate in wells with relativelysmall working/net revenue interests. This allows Magnolia to gain access tocritical well information which is then used to further enhance itsunderstanding of the relevant formation. ** IPRs reported post period end * * 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 118 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 118 Being Drilled / Completed 10 Elected to participate / waiting to 37spud TOTAL 165