Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 23 January 2012 Magnolia Petroleum Plc (Magnolia or the Company) Drilling Underway at Marathon Operated Wells in the Bakken/Three Forks Sanish Formations, North Dakota
Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and production company, announces an update on the drilling of the two Eckelberg wells in the Bakken / Three Forks Sanish Formations in North Dakota, in which it participates with leading US oil and gas operator, Marathon Oil Company (Marathon).
In the release dated 20 December 2011, the Company announced it had elected to participate with Marathon in the drilling of the Eckelberg 14-23H infill well, targeting the Middle Bakken Sandstone interval and also the Eckelberg 14-23TFH well, drilling to the Three Forks Sanish Formation.
On 19 January 2012, the Company received confirmation from Marathon that both wells have been spud: the Eckelberg 14-23H on 6 December 2011; and the Eckelberg 14-23TFH on 31 December 2011.
The two Eckelberg wells are now being drilled and further updates will be provided to the market as and when they become available.
Rita Whittington, COO of Magnolia Petroleum, said, "We are keenly aware of the growing interest in our operations and so I am pleased to be in a position to provide a progress report on the two Eckelberg wells.

We are looking forward to receiving the results from these two wells.

We believe they will illustrate the transformational effects technological advancements have had on recovery and flow rates of the already prolific Bakken / Three Forks Sanish basins in North Dakota.

I very much look forward to providing the market with further updates on all our interests in due course."
Full Details
Bakken / Three Forks Sanish, North Dakota
* Eckelberg 14-23H infill well in Dunn County, North Dakota (0.53367% working interest) in partnership with Marathon Oil Company, located in Sections 14 & 23-146N-93W.

This well is drilling to the Middle Bakken Sandstone interval and is expected to be completed with a 30 stage frac at a cost to Magnolia of approximately US$43,232.
* Eckelberg 14-23TFH infill well in Dunn County, North Dakota (0.53367% working interest) in partnership with Marathon Oil Company drilling to the Three Forks Sanish Formation using the same pad as the above well.

The well is expected to be completed with a 30 stage frac at a cost to Magnolia of approximately US$44,933.
Both Eckelberg wells are being drilled within the same spacing unit as the Clive Pelton 34-23H well, which was drilled to the Middle Bakken Sandstone Interval by Marathon Oil Company and participated in by the Company in 2008.

The Pelton well was completed with a single stage frac with an initial production of 483 barrels of oil per day and 148 MCF of gas per day.

In comparison, the two new Eckelberg wells will be completed with 30 stage fracs, and as a result, the directors believe that production from these two new wells should be substantially higher.
** 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 Antony Legge / James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550 Charles Vaughan Northland Capital Partners Limited +44 (0) 20 7796 8800 Hugo de Salis St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes Magnolia Petroleum Plc is an AIM quoted oil and gas exploration and production company focussed on the US.

Magnolia has an extensive and highly prospective portfolio of both producing and non-producing oil and gas interests, primarily located in the highly productive Bakken / Three Forks Sanish hydrocarbon formations in North Dakota as well as on the substantial and proven Woodford/Hunton reservoirs in Oklahoma and the oil rich Mississippi located in Oklahoma.

Currently, Magnolia has interests in 64 oil and/or gas producing properties.
[cid:image001.jpg@01CCD9A9.0DE47C40]