Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 20 November 2012 Magnolia Petroleum Plc (Magnolia or the Company) Spudding of First Well as Operator in Mississippi Lime Formation, Oklahoma Magnolia Petroleum plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that the Roger Swartz #1 (the Well), a vertical well targeting the producing Mississippi Lime formation, Oklahoma, commenced drilling on 19 November 2012.

Drilling is expected to last between 8-10 days at an estimated cost of US$729,148 and has a targeted total depth of 5,500ft. The Well is located in Noble County, Oklahoma, and forms part of the acquisition of 800 gross acres as previously announced by the Company on 10 February 2012.

The directors believe that a further seven potential well sites could exist on this acreage. Under the terms of the original farm in deal, Magnolia acquired a 100% working interest in the leases at no initial cost to the Company.

The farmors have a 16.25% back-in to the Well once pay-out has been achieved i.e.

drilling costs have been recovered.

Upon pay-out Magnolias working interest/ net revenue interest in the Well will therefore be 83.75% and 68.05% respectively. Rita Whittington, COO of Magnolia, said, "The Roger Swartz is the first well we have drilled as operator in Oklahoma and we are delighted to have reached our previously announced target of drilling our first well as operator before the end of this year.

Becoming an operator marks another development of our growth strategy.

Other opportunities also exist in the same acreage, which we will look to exploit as appropriate going forward and could significantly add to net production due to Magnolia having larger working interests.

In addition, leases in which there is an operating well are reclassified as held by production, meaning they will not expire.

Depending on the production rates, we would expect to see a further increase in our proven reserves, which will be part of the reserve report to be produced next year. "In tandem with our continued participation in wells with established operators in the Bakken/ Three Forks Sanish Formations, North Dakota, and the reopening liquids rich plays in Oklahoma, we remain on course to create significant value for shareholders through sustained growth in production and reserves." Pictures of the drilling of the Roger Swartz #1 will be uploaded onto the Companys website, www.magnoliapetroleum.com, as and when they become available. Existing Well Updates The Company has also been informed by the relevant operators of a change in status for the following wells: Well Formation Status NRI % Operator
Beebe 24-W1H Mississippi Undergoing fracture stimulation 0.242188 Longfellow Energy Mack 10-27-17 1H Mississippi Drilling 0.5 Chesapeake
** 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 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 84 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 84 Being Drilled / Completed 16 Elected to participate / waiting to spud 14 TOTAL 114
This summary 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.
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