Increase in Credit Facility

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 20 May 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') Increase in Credit Facility Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to announce the borrowing baselimit of its Credit Facility has been increased to US$2.75 million from US$2.1million. This follows the recent increase in the value of the Company's netattributable proved and developed producing reserves (`PDP') to US$8.416million. The Credit Facility, along with revenues generated from production,funds Magnolia's drilling activity to prove up the reserves on its leases inproven US onshore formations, such as the Bakken/Three Forks Sanish, NorthDakota and the Woodford/Mississippi Lime, Oklahoma. As announced on 22 October 2013, the Company agreed a three year revolving lineof credit with a nominal value of US$5 million and interest charged on creditdrawn down at Wall Street Journal Prime +1.00%. An initial borrowing base limitof US$1.6 million was set which, under the terms of the Credit Facility, isreassessed on a six monthly basis and adjusted in line with the level ofMagnolia's PDP reserves. Rita Whittington, COO of Magnolia, said, "This is the second increase in theborrowing base limit since we secured the Credit Facility in October 2013. Thefirst was based on the strong trading performance as detailed in the recentfull year results which included a 244% jump in revenues to US$2,443,244 andEBITDA of US$975,622; while today's increase is based on the progress made ingrowing our PDP reserves. With US$2.75 million available from the CreditFacility and revenues growing strongly, we are well placed to prove up thereserves on our leases, and in the process generate value for shareholders." ** 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 +44 207 382 1100Luke 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 142 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 154 Being Drilled / Completed 17 Elected to participate / waiting to 48spud TOTAL 219