MAGNOLIA PETROLEUM PLC: Participating in 11 Additional US Onshore Wells Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 21 May 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations Update Including Participation in 11 New Wells in US Onshore Formations Magnolia Petroleum plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to report an update on the Company's activities in proven US onshore formations such as the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime and Woodford/Hunton formations in Oklahoma. Participation in new wells The Company is pleased to announce that it is participating in the following eleven wells for an aggregate net cost of US$1,398,694: Well Name Targeted Formation Operator Magnolia's Net Cost to WI/NRI Magnolia Blaser 1-10H Mississippi Lime, Cummings 12.5%/ US$406,188 Oklahoma 9.375% Jake 2-11-3TFH Three Forks Sanish, Statoil 1.953%/ US$209,568 North Dakota 1.465% Jake 2-11-4H Bakken, North Statoil 1.953%/ US$209,568 Dakota 1.465% Jake 2-11-5TFH Three Forks Sanish, Statoil 1.953%/ US$209,568 North Dakota 1.465% Jake 2-11-6H Bakken, North Statoil 1.953%/ US$209,568 Dakota 1.465% Voise 1-10H Mississippi Lime, Devon Energy 1.667%/ US$58,134 Oklahoma 1.25% Giles 1-6H Mississippi Lime, Red Fork 1.25%/ US$42,579 Oklahoma 0.937% Paul 1-27H Mississippi Lime, Orion 0.391%/ US$16,766 Oklahoma 0.292% Rabke 1-24H36 Woodford, Oklahoma XTO 0.322%/ US$18,565 0.247% Jo Lynn 18-1WH Woodford, Oklahoma Devon Energy 0.435%/ US$14,416 0.348% TBN 1-32H Mississippi Lime, Red Fork 0.111%/ US$3,774 Oklahoma 0.088% Commencement of Production The Company has been informed by the relevant operator that production has commenced at the following wells, with the IPRs as set out below: Well Name Formation Operator Gross IPR Magnolia's Net IPR NRI Wolf 1H-25 Mississippi Highmount 195 boepd 1.25% 2.4 boepd Lime, Oklahoma Nighswonger Mississippi Slawson 107 boepd 2.242% 2.4 boepd Farms 2815 Lime, Exploration 1-13H Oklahoma McClure 36-2H Mississippi Highmount 90 boepd 0.055% 0.05 boepd Lime, Oklahoma Rita Whittington, COO of Magnolia, said, "The speed with which we have started to deploy the recently raised funds demonstrates the high level of activity in US onshore liquids rich plays, the large number of opportunities we continue to see and, more specifically, the considerable potential of the 13,500 plus net mineral acres we hold. Both the above average interest in the Blaser well, along with an aggregate net investment of almost US$1.4million into new wells, are in line with our strategy to rapidly grow net production and reserves through drilling, as we look to generate further value for shareholders. This is a highly exciting time for Magnolia and I look forward to providing further updates on our progress in due course." Interest in producing well As part of Magnolia's on-going lease acquisition activity, the Company has acquired a 0.328%/0.246% working/net revenue interest in the Betty 22-24-10 1H, a horizontal well operated by Chesapeake Energy. The well has been producing from the Mississippi Lime Formation in Oklahoma since October 2012 with a reported initial production rate of 128 boepd. ** 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 Jo Turner / James Cairn Financial Advisers LLP +44 20 7148 7900 Caithie John Howes / Alice Northland Capital Partners +44 20 7796 8800 Lane / Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance +44 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 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 110 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 110 Being Drilled / Completed 14 Elected to participate / waiting to 27 spud TOTAL 151 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- May/21/2013 06:00 GMT
MAGNOLIA PETROLEUM PLC: Participating in 11 Additional US Onshore Wells
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