Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 4 October 2013 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Update for the Period Ended 30 September 2013 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 * Production as at 1 August 2013 stood at 214 boepd net to Magnolia - 75% increase since 1 January 2013 * Seven new wells commenced production during Q3 2013 bringing total to 124 producing wells * Initial production rates (IPRs) reported for three wells (Helgeson 41-30H; Jake 2-11 #1H; Jake 2-11 2TFH) totalling 147.5 boepd net to Magnolia (note existing production from these wells will be lower due to decline rates) * Elected to participate in 16 new wells * On-going leasing activity resulted in increase in working interest in seven existing wells under development * US$47 million value assigned to Company's 2P reserves as at 1 August 2013 based on upgraded net attributable oil and condensate 2P reserves of 1,437 Mbbl and net attributable gas 2P reserves of 5,124 MMcf * + Only nine of 45 new wells announced between 1 January 2013 and 1 August 2013 contributed to the increase in 2P reserves - future upgrades expected as remaining and new wells are drilled * Reserves estimate covers approximately 5,500 net acres out of total of over 13,500 in proven formations, such as the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime, Hunton/Woodford, Oklahoma Outlook * New wells due to come into production in Q4 2013, including several with higher than average interests being Blaser (9.375%) and Linda 1-4 (9.375%) * Further participations in new wells with leading operators expected * On track for major increase in full year revenues following strong H1 performance in which H1 revenues of US$910,721 were substantially higher than those of the previous full year as a whole - in addition H2 revenues expected to be higher than H1 due to more wells coming on stream, a number of which with larger net interests * 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, "By the end of this quarter, Magnolia hadinterests in 174 wells in proven US onshore formations, 124 of which arecurrently producing. Thanks to a 44% increase in the producing well count sinceJanuary 2013 and our on-going strategy to raise the average size of ourinterest in new and existing wells, we reported a 75% jump in net production to214 boepd as at 1 August 2013, compared to 122.5 boped in January 2013. "We are increasingly using internally generated revenues to fund drillingactivity to prove up the reserves on the 13,500+ net mineral acres we hold inliquids rich US onshore plays. With over 600 potential drilling locations onour existing acreage, there remains considerable scope for us to deliver on ourobjective and substantially grow Magnolia's net proved and probable reserveswhich, as at 1 August 2013, were assigned a value of US$47m by our CompetentPerson." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Linda 1-4** Wilcox, Oklahoma Completed - 9.375 MT. Dora waiting on surface equipment and IP results Blaser 1-10H Mississippi Completed - 9.375 Cummings Lime, Oklahoma waiting on IP results Kennedy #5 Dolomite, Waiting to spud 6.094 Bill Laird Oklahoma LeMarr#1 Oswego, Oklahoma Completed - 4.68 Stephens waiting on IP Exploration results Helgeson 41-30H Bakken, North Producing 4.071 Marathon Oil Dakota Sullins 1-6MH Mississippi Waiting on 3.718 Devon Energy(formerly Miss Lime, Oklahoma surfaceFrank 1-6MH) facilities to be installed Murl#1 Bois D Arc, Producing 3.047 Basis Chimney Hill, Viola, Simpson, Oklahoma Jo Lynn 18-1WH* Mississippi Lime Completing 2.97 Devon Energy /Woodford, Oklahoma TBN 1-31H* Mississippi Waiting to spud 2.51 Red Fork Lime, Oklahoma SPS Lucy 1-14H Hunton, Oklahoma Waiting to spud 2.42 Paul Gillham Reta#1** Bois D Arc, Waiting on frac 2.31 Basis Chimney Hill, Viola, Simpson, Oklahoma Donaldson 1-21H* Woodford, Waiting to spud 2.213 Meason Oklahoma Petroleum JKL 1-08H Mississippi Producing 1.719 Devon Energy Lime, Oklahoma Yani 1-31H* Hunton, Oklahoma Waiting to spud 1.66 Equal Energy Bolay #1-19HW Woodford, Waiting to spud 1.55 Devon Energy Oklahoma Jake 2-11 # 1H Bakken, North Producing 1.465 Statoil Dakota Jake 2-11 # 2TFH Three Forks Producing 1.465 Statoil Sanish, North Dakota Jake 2-11-3TFH Three Forks Drilling 1.465 Statoil Sanish, North Dakota Jake 2-11-4H Bakken, North Well drilled, 1.465 Statoil Dakota now completing Jake 2-11-5TFH Three Forks Waiting on 1.465 Statoil Sanish, North fracture Dakota stimulation Jake 2-11-6H Bakken, North Waiting on 1.465 Statoil Dakota fracture stimulation Not Named 28-1MWH Mississippi and Waiting to spud 1.0 Calyx Woodford, Oklahoma Sympson 1-6H* Woodford, Producing 0.882 Continental Oklahoma Resources Omega 1-33H Hunton, Oklahoma Completed - 0.789 Equal Energy waiting on IP results Fuxa 1-9H Mississippi Waiting to spud 0.558 Slawson Lime, Oklahoma Exploration JKL 1-04H Mississippi Producing 0.555 Devon Energy Lime, Oklahoma SPS Lucy 1-11H* Hunton, Oklahoma Waiting to spud 0.326 Paul Gillham Robison 4-1MWH Woodford, Waiting to spud 0.335 Calyx Oklahoma Rabke 1-24H36 Woodford, Drilled 0.247 XTO Oklahoma Territory East 9-1H Mississippi Waiting to spud 0.234 Dorado E&P Lime, Oklahoma Rabke 2-24H-36 Woodford, Completing 0.213 XTO Oklahoma Rabke 3-24H-26 Woodford, Drilling 0.20 XTO Oklahoma Campbell 1-17H Mississippi Completed - 0.089 Truevine Lime, Oklahoma waiting on IP results *net revenue interest increased during the quarter **vertical well * * 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 124 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 124 Being Drilled / Completed 18 Elected to participate / waiting to 32spud TOTAL 174