Quarterly Operations Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 9 January 2014 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Update for the Period Ended 31 December 2013 Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, announces a quarterly update on its operations acrossproven and producing US onshore hydrocarbon formations, including the Bakken/Three Forks Sanish in North Dakota and Montana, and the Mississippi Lime andthe Hunton/Woodford in Oklahoma. Quarter Highlights * IPRs reported for 12 new wells during Q4 2013 - total number of producing wells now stands at 140 * Initial production rates (`IPRs') for new wells reported during Q4 2013 totalled 233 boepd net to Magnolia (note existing production from each of these wells will be lower due to decline rates) * + Next Competent Person's Report (`CPR') expected to show significant increase in daily production on 214 boepd level as at 1 August 2013 * Elected to participate in 13 new wells including those with larger than average interests such as the Parmley 1-1WH well (12.187%) in the Mississippi Lime Formation * + Average interest in portfolio of 184 wells at various stages of development is over 3% compared to 0.6% at time of AIM Admission in November 2011 * Leasehold position in Oklahoma increased to 5,800 net mineral acres * US$5m credit facility secured to accelerate drilling activity and prove up reserves on leases covering over 13,500 net mineral acres in proven US onshore formations Outlook * New wells due to come into production in Q1 2014 - several with higher than average interests including the Parmley 1-1WH well * Further participations in new wells with leading operators expected * On track for major increase in full year 2013 revenues following strong H1 performance, excellent initial production of new wells in H2, a number with larger net interests * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio * Updated CPR to be commissioned in Q1 2014 - to include estimates for the Company's average production rates and reserves in the 1P, 2P and 3P categories * Further strong growth expected in Magnolia's 2P reserves which as at 1 August 2013 stood at 1,437 Mbbl of oil and condensate and 5,124 MMcf of gas which were assigned a value of US$47 million * + Only nine of 45 new wells announced between 1 January 2013 and 1 August 2013 included in 2P reserves + Reserves estimate covers approximately 5,500 net acres out of total of over 13,500 in proven formations, such as the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime, Woodford, Oklahoma Magnolia COO, Rita Whittington said, "As illustrated by the excellent IPRs ofthe four Statoil operated Jake wells and also the Great White well, whichcombined added over 200 boepd net to Magnolia, Q4 2013 has seen furtherconsiderable progress achieved in terms of rapidly growing net production onour leases in proven US onshore formations. The combination of the higherrevenues generated by the increased production and the recently securedUS$5million credit facility will allow us to accelerate our drilling activityalongside leading operators such as Devon Energy. We therefore expect thestrong momentum behind the business seen in 2013 to continue in the year ahead,as we focus on our objective to prove up the reserves on our leases and in theprocess generate significant value for all our shareholders." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Parmley 1-1WH Mississippi Drilled, 12.187 Devon Energy Lime, Woodford, completed, Oklahoma waiting on frac Great White 1-14H Mississippi Producing 10.21 Red Fork Lime, Oklahoma Voise 24-1WH Mississippi Waiting to spud 7.5 Devon Energy Lime, Woodford, Oklahoma Nevada 1-29 Hunton, Simpson, Waiting to spud 4.687 Phoenix Oil Dolomite, Oklahoma LeMarr#1 Oswego, Oklahoma Producing 4.68 Stephens Exploration Sullins 1-6MH Mississippi Producing 3.718 Devon Energy(formerly Miss Lime, OklahomaFrank 1-6MH) Marion 1-23HW Mississippi Waiting to spud 3.516 Devon Energy Lime, Woodford,(formerly ?1-23HW) Oklahoma Murl#1 Bois D Arc, Producing 3.047 Basis Chimney Hill, Viola, Simpson, Oklahoma Reta#1 Bois D Arc, Producing 2.31 Basis Chimney Hill, Viola, Simpson, Oklahoma Bolay #1-19HW Woodford, Drilled, 2.059 Devon Energy Oklahoma completed, waiting on frac SPS Lucy 1-14H Hunton, Oklahoma Completing 1.562 Paul Gillham Jake 2-11-3TFH Three Forks Producing 1.465 Statoil Sanish, North Dakota Jake 2-11-4H Bakken, North Producing 1.465 Statoil Dakota Jake 2-11-5TFH Three Forks Producing 1.465 Statoil Sanish, North Dakota Jake 2-11-6H Bakken, North Producing 1.465 Statoil Dakota Northcut WildWest Hunton, Oklahoma Waiting to spud 1.172 Orca Operating1-1H Participation in new well The Company is pleased to announce that it is participating in the followingwell: Well Name Targeted Formation Operator Magnolia's WI/ Net Cost to NRI Magnolia Coffman Mississippi Lime, Chesapeake 1.56%/1.17% US$57,20326-27-11 1H Oklahoma In addition, Magnolia is participating in a further six wells in which it holdsminor interests. Going forward, the Company intends to only provide details and updates forwells in which it has a working interest of 1.5% or more. The Summary of Wellstable at the end of each release will continue to be updated as and when achange in status occurs for all wells in which Magnolia has an interest. * * 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 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 140 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 140 Being Drilled / Completed 9 Elected to participate / waiting to 35spud TOTAL 184