MAGNOLIA PETROLEUM PLC: Excellent Production at 2nd Jake Well, N. Dakota Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 25 July 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Excellent Initial Production at Second of Six Jake Wells in North Dakota Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to report an initial production rate of 2,244 boepd for the Statoil operated Jake 2-11 2TFH well in the Three Forks Sanish Formation, North Dakota, in which Magnolia holds a 1.465% net revenue interest. This adds 33 boepd to the Company's net production and follows the initial production rates for the Jake 2-11 # 1H, announced on 22 July 2013, which added a further 57.5 boepd net to Magnolia. This update is in line with the Company's strategy to rapidly build production and reserves on its leases in proven US onshore formations. Commencement of Production at Jake 2-11 2TFH Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI% Formation Jake 2-11 Three Forks Statoil 2,244 boepd 1.465 33 boepd 2TFH Sanish, North Dakota (85% oil) Rita Whittington, COO of Magnolia, said, "As a result of this second Statoil operated Jake well, the last four wells in which we have participated in North Dakota's prolific Bakken and Three Forks Sanish formations have added almost 200 boepd net to Magnolia. Even after taking decline rates into account, this substantial increase in net production will result in a major uplift in revenues which in turn will fund new wells and leases. "Revenues generated from 121 producing wells are funding an ever-increasing proportion of our drilling activity across our portfolio of 13,500 net mineral acres in proven US onshore formations. With an additional four Jake wells to come, along with other wells in which we have larger working interests such as the Blaser (12.5% working interest), we are highly confident this trend is set to continue." ** 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 `IPR' means initial production rates `NRI' means net revenue interest `WI' means working interest 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 Caithie Cairn Financial Advisers LLP +44 20 7148 7900 John Howes / Alice Lane / Northland Capital Partners +44 20 7796 8800 Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177 Notes Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration and production company. Its portfolio includes interests in 121 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 121 Being Drilled / Completed 13 Elected to participate / waiting to 34 spud TOTAL 168 END -0- Jul/25/2013 06:00 GMT
MAGNOLIA PETROLEUM PLC: Excellent Production at 2nd Jake Well, N. Dakota
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