🕐04.01.13 - 10:27 Uhr

NORTHLAND CAPITAL HIGHLIGHTS MAGNOLIAS ACQUISITION OF MONTANA ACREAGE



Good morning and Happy New Year, Please see below a note from Northland Capital following the Magnolia Petroleum (AIM: MAGP) news this morning.

Magnolia has acquired a further 985 net mineral acres in Montana which increases its total acreage in the Montana Three Forks Sanish Formation to 7,866 acres. The full release is pasted below. Best regards, Lottie
OIL & GAS: MAGNOLIA PETROLEUM (MAGP.L); 3.9p/�33m CORP ACQUIRES ADDITIONAL MONTANA BAKKEN/THREE FORKS SANISH ACREAGE
n Magnolia has acquired an additional 985 net mineral acres in Montana. n Purchase price of approximately $546k will be funded from existing cash resources. n The company now holds a total of 7,866 net mineral acres In Montana targeting the Bakken and three Forks Sanish formations. n Magnolia updates on its well inventory that now stands at 86 producers, 15 being drilled/completed and 13 elected awaiting spud for a total of 114 participations.
Northland UK view: Purchase consideration averaging c.

$554 per acre looks attractive.

This move continues the companys policy of seeking to inexpensively acquire acreage that is likely to be developed as extensions of proven plays and the statement indicates a number of companies are likely to be drilling in the area in 2013.

On 20th November, the company announced the spud of its own-operated acreage in the Mississippi Lime, Oklahoma.

The Roger Swartz 1 vertical well encountered hydrocarbons and is undergoing testing.

This was a key milestone that signalled its progression from minority stakeholder to owner-operator and within the timeframe outlined at IPO in November 2011.

This year should see the continued development of its own-operated acreage, whilst the company can be expected to continue to participate in a number of smaller stakes as proposals continue to be made on existing acreage.

A new CPR will be commissioned that will update for some of the Oklahoma acreage as well as the Three Folks Sanish formation that represents an additional productive horizon on the same acreage to the much heralded Bakken formation.

The company added 4,284 acres in the Mississippi Lime last year and has expanded its land assets into what could be an interesting extension of the Bakken and three Folks Sanish formations in Montana as well as adding to its acreage in North Dakota.
Contact
Andrew McGeary +44 (0)20 7796 8843
[cid:image001.png@01CDEA59.C08716C0] Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 4 January 2013 Magnolia Petroleum Plc (Magnolia or the Company) Acquisition of 985 Net Acres in Bakken Formation, Montana Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that it has agreed to acquire 985 net mineral acres in Montana for a cash consideration of US$546,000. Highlights
� 985 net mineral acres acquired in the Montana section of the Bakken/Three Forks Sanish formation, bringing total acreage acquired in the district to 7,866 � Total cost of the acquisition is US$546,000 to be funded from existing cash balances � Majority of acreage located in Daniels County, Montana Magnolia COO, Rita Whittington said, "Following on from our expansion in November 2012 into Daniels County, Montana, we are pleased to further extend our interest in the area with the acquisition of a further 985 net mineral acres. "We believe the area has the potential to become a significant extension for production from the Bakken/Three Forks Sanish formations and a number of companies have drilling programmes in the area planned for 2013." ** 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 86 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 86 Being Drilled / Completed 15 Elected to participate / waiting to spud 13 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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