Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 22 October 2013 Magnolia Petroleum Plc (`Magnolia' or `the Company') US$5 million Credit Facility Secured Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to announce it has secured aUS$5 million three year Credit Facility (`the Credit Facility'). Combined withthe Company's fast growing revenues from production, which as at 1 August 2013stood at 214 boepd, the Credit Facility will provide funding for futuredrilling activity alongside established operators, as well as the acquisitionof additional leases in proven US onshore formations. Credit Facility The Credit Facility is a three year revolving line of credit with a nominalvalue of US$5 million. Interest is charged on credit draw down at Wall StreetJournal Prime (currently 3.25%) +1.00%. No warrants or equity are to be issuedas part of the facility. Under the terms of the credit line, an initialborrowing base limit of US$1.6 million has been set which will be reassessed ona six monthly basis and adjusted in line with the level of Magnolia's ProvenDeveloped Producing reserves (`PDP'). The Directors expect the strong growthseen to date in the Company's PDP reserves will be maintained as a result of apipeline of 50 new wells at various stages of development and the multiple wellproposals being received. Equity Financing Facility (`EFF') The Company announced on 9 August 2012 that it had secured an EFF providingadditional optionality when issuing shares on a non-pre-emptive basis. TheDirectors are very conscious of minimising the amount of new equity issued andfrom the outset it has been the ambition of the Company to become self-funding.Based on current trading and today's announcement of the US$5 million CreditFacility, the Directors do not anticipate drawing down under the EFF in theforeseeable future. Rita Whittington, COO of Magnolia, said, "Securing this US$5 million CreditFacility not only represents a third party validation of both our businessmodel and the progress we have made to date, but also goes a long way topropelling Magnolia towards self-funding status. Combined with our strongrevenue growth profile, which, in line with our strategy, is already allowingus to increasingly fund new well participations using recycled capital, we arenow in a position to accelerate our drilling activity and at the same timeprove up our reserves. "In the two years since our Admission to AIM, we have proven our model cancreate value for shareholders having grown our 2P reserves from US$2.2 millionat the time of our IPO to US$47 million as at 1 August 2013. With over 600potential drilling locations on our acreage and having secured the CreditFacility, we are delighted that we are in a position to prove up the reserveson our acreage while retaining more of the value upside for our shareholders. Ilook forward to providing further updates, as we continue to grow our reservesthrough drilling." ** 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 Limited +44 20 7796 8800Luke Cairns 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