MAGNOLIA PETROLEUM PLC: Operational Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas       
27 November 2012 
          Magnolia Petroleum Plc(`Magnolia' or `the Company')               


                               Operational Update                               


Magnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration and
production company, is pleased to report an update on the Company's commercial
activities in proven US onshore formations including the Bakken/Three Forks
Sanish, North Dakota and the Mississippi Lime and Woodford/Hunton formations in
Oklahoma.

Initial Production Rates

  * Commencement of production at the Chesapeake Energy operated Otis 2-27-12
    1H horizontal well in the Mississippi Lime formation, in which Magnolia has
    a 4.2128% working interest (`WI') and 3.370244% net revenue interest
    (`NRI')
      * 
      + Gross initial production rate above expectations at 341 boepd (11.49
        boepd net) based on first 10 days of production
       
      + Expected payout (recovery of costs) of less than 12 months on costs of
        US$157,628


   
  * Commencement of production at the Paul Gillham & Co operated SPS 6-26 


    vertical well in the Hunton formation, in which Magnolia has a 0.8333% WI
    and 0.62799% NRI
      * 
      + Gross initial production rate above expectations at 108 boepd (0.678
        boepd net)
       
      + Expected payout of less than 12 months on costs of US$11,745


   
Existing Well Updates 
* Roger Swartz #1 vertical well operated by Magnolia and targeting the 


    producing Mississippi Lime formation, Oklahoma, reached targeted total
    depth on 26 November 2012
      * 
      + Completion is due to commence shortly


   
  * Campbell 1-H horizontal well targeting the Woodford Formation, Oklahoma, 


    has commenced drilling. Magnolia holds a 0.0694% working interest in the
    well which is operated by Newfield Exploration.  The total cost of the well
    has been estimated at US$9,500,568 with the Company's share estimated at
    US$6,593.
    On-going Leasing Activity

  * 143.55 acres acquired in the Mississippi Lime formation - total acreage in
    the formation now stands at 4,319.55 acres
      * 178 net mineral acres acquired in the Montana section of the Bakken/Three
    Forks Sanish formation - total acreage in this section of the formation now
    stands at 6,881 acres
      * 1.125 net mineral acres acquired in North Dakota providing 8 additional
    potential drilling locations targeting the Bakken/Three Forks Sanish
    formations


Magnolia COO, Rita Whittington said, "We are delighted with the initial
production rates for the Otis and SPS wells, both of which have exceeded our
expectations. At current rates, our participation costs for both wells will be
recovered within 12 months. The quicker the payout the sooner we can recycle
revenues into further wells, as well as continue to build our growing inventory
of potential drilling locations in proven US onshore formations by acquiring
additional leases, as announced today. 
"Following the commencement of production at the Otis and SPS wells, Magnolia
now has interests in 86 producing wells in proven US onshore formations
including the prolific Bakken/Three Forks Sanish formations in North Dakota,
with a further 15 wells currently drilling/completing and 13 waiting to spud.
We believe the combination of our proven business model with the ever
increasing number of opportunities we are seeing in our areas of interest, keep
us on course to generate significant value for all shareholders." 
Website Photos 
New pictures of the Roger Swartz #1, along with the Prucha 1-23MH and
Montecristo 6-1H wells have been uploaded onto the Company's website, under the
"Operations" tab at www.magnoliapetroleum.com. 
                              ** ENDS **                                    
Glossary 
`boe' means barrels of oil equivalent: a unit of energy based on the
approximate energy released by burning one barrel (42 US gallons or 158.9873
litres) of crude oil. 
There are 42 gallons (approximately 159 litres) in one barrel of oil, which
will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700
kilowatt hours (kWh). The value is necessarily approximate as various grades of
oil have slightly different heating values. BOE is used by oil and gas
companies in their financial statements as a way of combining oil and natural
gas reserves and production into a single measure. 
`boepd' means barrels of oil equivalent per day 
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 focused, oil and gas exploration
and production company.  Its portfolio includes interests in 86 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                                                                  86 
                                                                         
Being Drilled/Completed                                                    15 
                                                                         
Elected to participate/waiting to spud                                     13 
                                                                         
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/27/2012 08:42 GMT