MAGNOLIA PETROLEUM PLC: Operational Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas       
5 February 2013 
         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 its activities in proven
US onshore formations including the Bakken/Three Forks Sanish, North Dakota and
the Mississippi Lime in Oklahoma.

Thomason 10-27-12 (`Thomason') and Lois Rust 7-27-12 1H (`Lois Rust') wells, 
Oklahoma

Following the announcement on 7 November 2012 of the commencement of work by
Chesapeake Energy (`Chesapeake'), the operator, to increase the sales line
capacity on the Thomason and Louis Rust wells, the Company has been informed by
Chesapeake that production recommenced at the Thomason horizontal well on 30
January 2013. As part of the same work programme, production at Lois Rust is
due to recommence by the end of this week. The impact of the work by the
operator will be known in the forthcoming weeks.

Montana Acreage

Following Magnolia's acquisition of 7,886 net mineral acres in Montana in
November 2012 and January 2013, the Company notes that Apache Corporation
(`Apache') has recently filed with the Montana Oil and Gas Commission
applications to space a further 23 sections in Daniels County in preparation
for possible future drilling activity. One of these spaced units is located on
Magnolia's acreage. The remaining spaced units are either surrounding and/or
adjacent to Magnolia's leases.

Apache had previously announced that Phase one of its planned drilling
operations targeting the Bakken formation in Daniels County, Montana, would
consist of five horizontal wells. The Magnolia Directors believe that Phase one
has been completed, however the results may not be known for some time.

Existing Well Updates

Production has commenced at the Transpro operated Walker 2-29 vertical well in
the Viola formation, Oklahoma, in which Magnolia has a 1.1113% working interest
(`WI') and 0.8335% NRI. This is an increased density well to the Walker 1-29 to
optimise the recovery of all the reserves.

  * Gross initial production rate at 17 boepd (0.14 boepd net)
      * Expected payout (recovery of costs) in 23 months on costs of US$8,539


The Company has been informed also by the relevant operators of a change in
status in the following wells: 
Well                Formation   Status               NRI %     Operator     
                                                                       
Bessie Todd Estate  Cotton      Completed, now       0.17306   Anadarko    
GU 31H              Valley      waiting on Initial                          
                            Production rates                            
                                                                       
Gustafson 31-30H    Bakken,     Drilled and          4.071     Marathon Oil 


                    North       completed, now                             
                    Dakota      waiting on fracture                        
                                stimulation                                


                                                                       
Campbell 1-H*       Woodford    Completing           0.026025  Newfield     
*From time to time, the Company elects to participate in wells with relatively
small working/net revenue interests. This allows Magnolia to gain access to
critical well information which is then used to further enhance its
understanding of the relevant formation. 
Magnolia COO, Rita Whittington said, "The successful drilling of the Walker
well to the Viola formation highlights the multiple producing reservoirs in
Oklahoma, alongside the better known Mississippi Lime and Woodford/Hunton that
can be targeted and commercially produced. Over the last twelve months, we have
acquired over 4,300 net mineral acres in Oklahoma, and we will continue to
participate in drilling wells on our leases to prove up our reserves and, in
the process, create value. 
"We are closely monitoring Apache's progress in Montana where we have acquired
7,886 net mineral acres in an area we believe has the potential to become a
significant extension for production from the prolific Bakken/Three Forks
Sanish formations. Our Montana acreage is in line with our strategy of
identifying new plays early, providing Magnolia with material exposure at
affordable valuations. Combined with further production news due soon, this is
an exciting period for the Company and I look forward to providing updates on
our progress." 
                              ** ENDS **                                    
Glossary 
`bopd' means barrels of oil per day 
`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 liters) 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     Northland Capital Partners     +44 (0) 20 7796 8800
Wicks                       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 91 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                                                                  91 
                                                                         
Being Drilled / Completed                                                  15 
                                                                         
Elected to participate / waiting to spud                                   16 
                                                                         
TOTAL                                                                     122 
Notes 
This table 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- Feb/05/2013 13:43 GMT
 
 
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