Receives USD1M Consulting Payment & Well Updates

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 3 September 2014 Magnolia Petroleum Plc (`Magnolia' or `the Company') Receives US$1 Million Consulting Payment and Well Updates Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to announce that it has receiveda US$1,002,000 payment for consulting services provided to an internationalcompany acquiring an oil and gas project in Oklahoma. In addition, the Companyhas been notified by the relevant operators that five wells in which it has aninterest have commenced production, generating a combined 47 boepd net toMagnolia based on reported initial production rates (`IPR'). Commencement of production at the following wells: Well Name Targeted Operator Gross IPR Magnolia's Net IPR* NRI% Formation Skunk Creek Bakken, Kodiak 1,342.86 0.675% 9.06 boepd4-8-17-13H North Dakota Exploration boepd Skunk Creek Three Forks Kodiak 1,248.26 0.675% 8.43 boepd4-8-17-13H3 Sanish, Exploration boepd North Dakota Skunk Creek Bakken, Kodiak 1,213.57 0.675% 8.19 boepd4-8-17-14H North Dakota Exploration boepd Skunk Creek Three Forks Kodiak 1,349.37 0.675% 9.12 boepd4-8-17-14H3 Sanish, Exploration boepd North Dakota Cummings 2H Mississippi Chesapeake 370 boepd 3.34% 36. boepd Lime, Oklahoma *Production will naturally decline from reported levels before stabilising atlower rates Rita Whittington, COO of Magnolia, said, "This payment of US$1 million forconsulting services will provide funding for additional drilling as we look tofurther increase our revenues from production. Additionally we are delightedwith the IP rates for the four Skunk Creek wells in North Dakota and theCummings 2H well targeting the Mississippi Lime in Oklahoma, adding just shy of50 boepd to our daily production figures. With a pipeline of wells waiting tospud, and continual drilling proposals coming in, we believe we are well placedto deliver 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 20 7796 8800 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