Operations Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 29 May 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations Update Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to provide an operations updateacross its portfolio of interests in proven US onshore formations including theBakken, North Dakota and Woodford and Mississippi Lime, Oklahoma. This updateis in line with the Company's strategy to rapidly build production throughdrilling and prove up the reserves on its leases. Commencement of production at the following well: Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI% Formation Parmley Woodford, Devon Energy 445 boepd 12.187 54 boepd1-1WH Oklahoma (93% oil) Production from the Parmley well is expected to decline from initial elevatedlevels. The Company is participating in the following six wells at a net aggregate costof US$899,808: Well Name Targeted Operator Magnolia's Net Cost to Status Formation WI/NRI% Magnolia Rothermel 4 Mississippi Devon 5.41/4.1 US$200,116 DrillingMH* Lime, Oklahoma Energy Lemmons 6MH* Mississippi Devon 5.41/4.1 US$200,197 Drilling Lime, Oklahoma Energy Lemmons 5WH* Woodford, Devon 5.41/4/1 US$209,280 w/o spud Oklahoma Energy Cummings 2H Mississippi Chesapeake 4.18/3.34 US$141,670 Drilling Lime, Oklahoma Energy Moe Jerome Woodford, Chaparral 1.95/1.56 US$84,462 w/o spud1WH Oklahoma Bowen 1-30** Wilcox, Simpson, Basis 10.94/8.75 US$64,083 w/o spud Viola, Hunton, Earlsboro, Oklahoma * One of six-eight infill wells to be drilled on the same spacing unit as theMarion 1-23 HW and the Rothermel 2MH spacing unit to maximise the recovery ofreserves **vertical well Rita Whittington, COO of Magnolia, said, "Parmley's initial production ratesand high level of oil content continue the run of excellent results for wellsproducing from the Woodford formation in which Magnolia has an interest. Thesewell results are consistent with the industry's revised view that the Woodfordis more prospective and productive than the Mississippi Lime. With the Woodfordlying below the Mississippi Lime across much of our 5,000 plus net mineralacres in Oklahoma, the positive implications for Magnolia's future net reservesgrowth, as more horizontal wells are drilled to the Woodford, are clear. "We expect to quickly recover our share of the costs of drilling Parmley, evenafter taking into account decline rates. In line with our strategy, revenuesgenerated from Parmley will be reinvested, alongside our recently increasedcredit facility, into further drilling activity to prove up the reserves on ourleases in US onshore plays. As demonstrated by the six new wells announcedtoday, we are not short of investable drilling opportunities and we continue toreceive multiple proposals to drill wells in Oklahoma targeting both theMississippi Lime and Woodford formations. I look forward to providing furtherupdates on our progress in due course." Existing well updates The Company has been informed by the relevant operator of a change in status inthe following well in which it is participating: Well Targeted Status NRI % Operator Formation Rothermel 1-3WH Woodford, Drilling 4.1 Devon Energy Oklahoma Rothermel 2MH Mississippi Lime, Drilling 4.1 Devon Energy Oklahoma ** ENDS ** Glossary `boe' means barrels of oil equivalent: a unit of energy based on theapproximate energy released by burning one barrel (42 US gallons or 158.9873litres) of crude oil. There are 42 gallons (approximately 159 litres) in one barrel of oil, whichwill contain approximately 5.8 million British Thermal Units (MBtus) or 1,700kilowatt hours (kWh). The value is necessarily approximate as various grades ofoil have slightly different heating values. BOE is used by oil and gascompanies in their financial statements as a way of combining oil and naturalgas reserves and production into a single measure. `boepd' means barrels of oil equivalent per day `bopd' means barrels of oil per day, Abbreviation for barrels of oil per day, acommon unit of measurement for volume of crude oil. The volume of a barrel isequivalent to 42 US gallons `IPR' means initial production rates `NRI' means net revenue interest `WI' means working interest 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 155 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 155 Being Drilled / Completed 23 Elected to participate / waiting to 49spud TOTAL 227