Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 14 May 2012 Magnolia Petroleum Plc (Magnolia or the Company) Production Update Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to report initial production rates for four wells across its portfolio of interests, focused on proven and producing US onshore hydrocarbon formations.

These include the prolific Bakken / Three Forks Sanish Formations in North Dakota and Mississippi Lime and Hunton / Woodford Formations in Oklahoma. Highlights
* Combined 3,391 bopd and 1.227 mmcf gross initial production rates from four wells in the Bakken / Three Forks Sanish Formations in North Dakota and the Hunton Formation in Oklahoma * Now participating in 74 producing wells with operators including Marathon Oil (Marathon) and Chesapeake Energy Well Summary Well Formation Initial Production Rate Status Operator Eckelberg 14-23H Bakken 1,263 bopd; 625 mcf Producing Marathon Eckelberg 14-23TF Three Forks Sanish 1,234 bopd; 602 mcf Producing Marathon Quill 2-12-3H Bakken 877 bopd Producing Hunt Oil Zenyatta 2-6 Hunton 17 bopd Producing Avalon
Magnolia COO, Rita Whittington said, "We now have interests in 74 producing properties in proven oil plays such as the Bakken / Three Forks Sanish, North Dakota and Mississippi Lime and the Woodford / Hunton Formations in Oklahoma.

In addition, we are awaiting results for a number of other wells.

Magnolia holds larger working interests in several of these than has historically been the case including a 12.5% interest in the Thomason well targeting the Mississippi Lime Formation.

As a result we expect to report another material increase in our daily production and revenues in due course.

We are delivering on our objectives and Magnolia remains on course to become a significant oil and gas company." Eckelberg 14-23H infill well, Bakken Formation, North Dakota (Magnolia 0.53367% working interest) The Eckelberg 14-23H infill well operated by Marathon is located in Dunn County, North Dakota.

This was drilled to the Middle Bakken Sandstone interval and was completed with a 30 stage frac costing Magnolia approximately US$43,232.

Initial production rates are 1,263 bopd and 625 mcf. Eckelberg 14-23TFH infill well, Three Forks Sanish Formation, North Dakota (Magnolia 0.53367% working interest) The Eckelberg 14-23TFH infill well operated by Marathon is located in Dunn County, North Dakota.

This was drilled to the Three Forks Sanish Formation and was completed with a 30 stage frac costing Magnolia approximately US$44,933.

Initial production rates are 1,234 bopd and 602 mcf. Quill 2-10-3H well, Bakken Formation, North Dakota (Magnolia 0.38786% working interest) The Quill 2-10-3H well operated by Hunt Oil Company is located in Dunn County, North Dakota.

This was drilled on the same spacing unit as Quill 1 that is producing from the Bakken Formation and was completed with a 30 stage frac costing Magnolia approximately US$31,936.47.

The initial production rate of the well has been reported at 877 bopd. Zenyatta 2-6 infill well, Hunton Formation, Oklahoma (Magnolia 1.057% working interest) The Zenyatta 2-6 well operated by Avalon Oil & Gas III LLC is located in Pottawatomie County, Oklahoma.

The initial production rate of the well is 17 bopd.

Due to it being a vertical well, and therefore at a significantly lower cost to drill, this initial production rate was expected.

The well was drilled at a total cost to Magnolia of approximately US$8,246. ** ENDS ** Glossary bopd means barrels of oil per day boe means barrels of oil equivalent boepd means barrels of oil equivalent per day Mbbl means thousand barrels Mcf means thousand cubic feet Mmcf means million cubic feet 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 Limited +44 (0) 20 7796 8800 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, US focussed, oil and gas exploration and production company.

Its portfolio includes interests in 74 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the substantial and proven Woodford and Hunton formations and the oil rich Mississippi formation, in Oklahoma.
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