MAGNOLIA PETROLEUM PLC: Commencement of Drilling of Two Statoil Operated Wells

MAGNOLIA PETROLEUM PLC: Commencement of Drilling of Two Statoil Operated Wells
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas       
7 November 2012 
          Magnolia Petroleum Plc(`Magnolia' or `the Company')               
 Commencement of drilling of two Statoil operated wells in Bakken/Three Forks   
              Sanish, North Dakota, and Operations Update                   
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, announces that drilling has commenced at
the Jake 2-11 1H and the Jake 2-11 TFH wells operated by Statoil ASA
(`Statoil'), successor to Brigham Oil & Gas, L.P., and targeting the prolific
Bakken/Three Forks Sanish formations, North Dakota. An update is also provided
on Magnolia's activities across its portfolio of interests in proven oil plays
including the Mississippi Lime and Woodford/Hunton formations in Oklahoma. 
The Jake 2-11 1H horizontal well located in Williams County, North Dakota, is
targeting the Bakken Formation and is operated by Statoil, a leading energy
company. The Jake 2-11 TFH horizontal well, also operated by Statoil, is using
the same pad as the Jake 2-11 1H well to target the Three Forks Sanish
Formation. Total drill costs for the Jake wells are estimated at US$10,215,000
each, with the Company's 1.9531% working interest in each well estimated at
US$199,509. Magnolia's net revenue interest is 1.4648%. 
Magnolia has been advised by Statoil that four further "Jake" wells, in which
Magnolia will have a working interest are scheduled to spud early 2013. These
wells will be drilled on the same pad as the Jake 2-11 1H and the Jake 2-11
TFH. 
Magnolia COO, Rita Whittington said, "Statoil has reported some of the best
initial production rates in this region. With this in mind, we are delighted
that the two Jake wells have commenced drilling and that four additional wells
in Williams County, also operated by Statoil, are due to be drilled in early
2013." 
Details of Two New Wells Waiting to spud in Oklahoma 
Cox 1-29H horizontal well targeting the Hunton Formation,Oklahoma.Magnolia has 
a
2.9167% working interest and a 2.1875% net revenue interest in the well which
is operated by Crown Energy.  Total drill costs are estimated at US$2,907,500
with the Company's share US$84,803. 
Walker 2-29 well targeting the Viola Formation, Oklahoma. Magnolia has a 
1.1113%
working interest and a 0.8335% net revenue interest in the well which is
operated by Transpro.  Total drill costs are estimated at US$768,423 with the
Company's share US$8,539. This is an increased density well to the Walker 1-29,
which paid out in less than 18 months, to optimise the recovery of all the
reserves. The site is currently being prepared for drilling ahead of spud. 
ExistingWell Updates 
The Company has also been informed by the relevant operators of a change in
status for the following wells: 
Well                Formation   Status               NRI %     Operator     
                                                                       
Prucha1-23MH        Mississippi Production           18.75     Devon Energy 


                                facilities and                             
                                pipeline have been                         
                                installed - frac                           
                                water currently                            
                                being extracted                            


                                                                       
Curtis Kerr 24-8H   Bakken      Undergoing fracture  1.46677   Marathon     
                            stimulation                                 
                                                                       
Nicky Kerr 14-8     Bakken      Undergoing fracture  1.46677   Marathon     
                            stimulation                                 
                                                                       
Montecristo 6-1H    Mississippi Waiting on           5.3486    Cisco        


                                installation of                            
                                pumping unit                               


                                                                       
Lois Rust 7-27-12   Mississippi Sales line capacity  1.8678    Chesapeake  
1H                              is being increased.                         


                                Waiting on                                 
                                installation                               


                                                                       
Thomason 10-27-12   Mississippi Sales line capacity  9.375     Chesapeake  
1H                              is being increased.                         


                                Waiting on                                 
                                installation.                              


                                                                       
Bowen 3-29          Wilcox      Expected to spud in  1.736006  Basis        
                            two weeks                                   
                              ** ENDS **                                    
For further information on Magnolia Petroleum Plc visit 
www.magnoliapetroleum.com or contact the following: 
Steven Snead                Magnolia Petroleum Plc         +01 918 449 8750     
                                                                           
Rita Whittington            Magnolia Petroleum Plc         +01 918 449 8750     
                                                                           
Antony Legge/James Thomas   Daniel Stewart & Company Plc   +44 (0) 20 7776 6550 
                                                                           
John Howes/John-Henry Wicks Northland Capital Partners     +44 (0) 20 7796 8800 
                        Limited                                             
                                                                           
Lottie Brocklehurst         St Brides Media and Finance    +44 (0) 20 7236 1177 
                        Ltd                                                 
                                                                           
Frank Buhagiar              St Brides Media and Finance    +44 (0) 20 7236 1177 
                        Ltd                                                 
Notes 
Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration
and production company.  Its portfolio includes interests in 84 producing and
non-producing assets, primarily located in the highly productive Bakken/Three
Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich
Mississippi Lime and the substantial and proven Woodford and Hunton formations
in Oklahoma. 
Summary of Wells 
Category                                                      Number of wells 
                                                                         
Producing                                                                  84 
                                                                         
Being Drilled / Completed                                                  15 
                                                                         
Elected to participate / waiting to                                        15
spud                                                                          
                                                                         
TOTAL                                                                     114 
This summary excludes four out of six wells acquired as part of the acquisition
of 800 gross acres with a 100% working interest in Osage County, Oklahoma, as
announced on 10 February 2012. These four wells are currently `shut in' and
will require a workover programme at some point in the future to bring back
into production. 
END 
-0- Nov/07/2012 11:17 GMT
 
 
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