Magnolia Petroleum Regulatory News (MAGP)

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 9 September 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') New US$6 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 a newUS$6 million two year Credit Facility (`the Credit Facility') with improvedterms. This replaces the Company's existing US$5 million facility, the detailsof which were announced on 22 October 2013. Combined with Magnolia's fastgrowing revenues from production, which stood at 257 boepd as at 1 July 2014,the new Credit Facility will help fund future drilling activity alongsideestablished operators, as well as the acquisition of additional leases inproven US onshore formations. Credit Facility The Credit Facility is a two year revolving line of credit with a nominal valueof US$6 million. Interest is charged on credit drawn down at Wall StreetJournal Prime (currently 3.25%) +0.75%. 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$4,596,944 has been set which will be reassessed on asix month basis and adjusted in line with the level of Magnolia's provendeveloped producing reserves (`PDP'). As announced on 22 August 2014,Magnolia's PDPs have been estimated at 162 Mbbl of oil and condensate and 540MMcf gas reserves with NPV10 of US$9.143 million. In agreeing to the improvedterms of the facility, the bank took into account the potential of Magnolia'sbehind pipe (`PDNP') and proven undeveloped reserves (`PUDs'). Rita Whittington, COO of Magnolia, said, "This new and improved credit facilitydemonstrates how US banks not only recognize the reserve values placed on ourproducing wells, but also the relatively low risk attached to upgrading behindpipe and proven undeveloped reserves to PDPs via drilling, as we havesuccessfully done over the past six months. With two thirds of our provenreserves of US$31.832 million categorised as behind pipes and PUDs, thepotential to add to our US$9 million of PDPs is clear. In addition, we have 74new wells at various stages of development and we continue to receive multipleproposals to participate in drilling alongside leading operators such as DevonEnergy. Combined with our fast growing revenues and our new credit facility, weare highly confident that the strong growth seen to date in the Company'sproven reserves will continue." ** 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 7382 1100 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 152 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 152 Waiting on first sales / IP rates 14 Being drilled / completed 8 Elected to participate / waiting to 52spud TOTAL 226