MAGNOLIA PETROLEUM PLC: Operational Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas       
15 January 2013 
          Magnolia Petroleum Plc(`Magnolia' or `the Company')               


                               OperationalUpdate                               

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 Basis operated Bowen 2-29 and Bowen 3-29
vertical wells in the Wilcox formation, Oklahoma

  * Bowen 2-29 - Gross initial production rate above expectations at 65 boepd
    (1.13 boepd net)
      * Bowen 3-29 - Gross initial production rate above expectations at 30 boepd
    (0.52 boepd net)
      * Both wells expected to payout (recover costs) in less than 12 months


The Bowen wells are two additional direct offsets to the Henry 2-29 vertical
well that is producing from the historic Wilcox formation in Oklahoma.
Following the success of the Henry well, the two Bowen wells were drilled to
optimise the recovery of all the reserves. As with the Henry well, Magnolia has
a 2.4373% WI and a NRI of 1.736006% in each Bowen well, resulting in its share
of drilling costs of US$13,612 each. Based on the initial production rates, it
is estimated the Bowen wells will both payout (recover costs) in less than 12
months. 
The gross initial production rate for the Paul Gillham & Co operated SPS 6-26
vertical well in the Hunton formation in Oklahoma came in above expectations at
108 boepd (0.678 boepd net). As a result, the SPS well has achieved payout in
less than five months. Magnolia's WI/NRI in the well are 0.8333% and 0.62799%
respectively. 
Participation in sixnewwells 
The Company is also pleased to announce that it is participating in a further
six wells, with a share of aggregate drill costs totalling approximately
$183,000. 
Well Name          Targeted Formation Operator            Magnolia's WI/NRI   
                                                                         
Nighswonger Farms  Mississippi Lime,  Slawson Exploration 3.125% /           
2815 1-13H         Oklahoma                                                   
                                                      2.241875%           
                                                                         
1H-18              Woodford, Oklahoma Newfield            0.529278% /         


                                      Exploration                            
                                                          0.44485%           


                                                                         
Miss Frank 1-6H    Mississippi Lime,  Devon Energy        0.68594% /          


                   Oklahoma                                                  
                                                          0.55732625%        


                                                                         
BB Rice~2          Bakken Formation,  Hess Corporation    0.11719% /          


                   North Dakota                                              
                                                          0.0878925%         


                                                                         
BB Rice#3          Three Forks Sanish Hess Corporation    0.11719% /          


                   Formation, North                                          
                   Dakota                                 0.0878925%         


                                                                         
Gritz 1-7H         Hunton Formation,  Husky Ventures      0.0434% /           
               Oklahoma                                                   
                                                      0.0352625           
Existing Well Update 
Magnolia COO, Rita Whittington said, "The initial production rates reported for
the two vertical Bowen wells, combined with the quick payout achieved by the
SPS vertical well provide ready-made examples of the attractive economics
behind drilling the proven reservoirs in Oklahoma. Magnolia's interests in the
Bakken, Three Forks Sanish, Mississippi Lime and Hunton formations continue to
provide attractive opportunities, as demonstrated by the participation in six
new wells mentioned today." 
                              ** 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 88 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                                                                  88 
                                                                         
Being Drilled/Completed                                                    17 
                                                                         
Elected to participate/waiting to spud                                     16 
                                                                         
TOTAL                                                                     121 
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- Jan/15/2013 07:00 GMT