Magnolia Petroleum Regulatory News (MAGP)

MAGNOLIA PETROLEUM PLC - Update on Prucha 1-23MH well

PR Newswire

London, January 16

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas

17 January 2013

Magnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration andproduction company, announces that following the recent speculation regardingthe Prucha 1-23 MH well (`Prucha' or `the Well'), the Company has discussedwith the operator the plans for bringing the Well into full production. TheBoard has now decided to relinquish the Company's interest in the Prucha wellon the basis that the funds allocated for Prucha may be better utilisedelsewhere in the Company's portfolio. No funds had been transferred to theoperator prior to this date and hence it is expected that there will be no lossto Magnolia through this decision.

The Company currently has interests in 88 producing wells in proven onshore USformations such as the Bakken, North Dakota, with a further 16 currentlydrilling/completing and 16 waiting to spud. In addition, Magnolia continues toreceive multiple proposals to participate in new wells across its acreage and,as a result expects to see continued growth in its portfolio in due course.

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This summary excludes four out of six wells acquired as part of the acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.