Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 24 January 2013 Magnolia Petroleum Plc (Magnolia or the Company) Operational Update Magnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration and production company, is pleased to report an update on the Companys commercial activities in proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime and Woodford/Hunton formations in Oklahoma. Participation in new wells The Company is pleased to announce that it is participating in a further two wells, each with an estimated total cost of US$8,562,000 of which Magnolias share is US$464,745 ($929,490 in aggregate). Well Name Targeted Formation Operator Magnolias WI/NRI Gustafson 31-30H Bakken, North Dakota Marathon Oil 5.428% / 4.071% Helgeson 41-30H Bakken, North Dakota Marathon Oil 5.428% / 4.071%
Initial Production Rates * Commencement of production at the Cisco operated Montecristo 6-1H horizontal well in the Mississippi Lime formation, in which Magnolia has a 6.1879% working interest (WI) and 5.3486% net revenue interest (NRI) * Gross initial production rate at 50 boepd (2.6743 boepd net) * Expected payout (recovery of costs) in 40 months on costs of US$234,286
* Commencement of production at the Longfellow Energy operated Beebe 24-W1H horizontal well in the Woodford formation, in which Magnolia has a 0.3125% WI and 0.242188% NRI o Gross initial production rate at 73 boepd (0.1768 boepd net) * Expected payout (recovery of costs) in 38 months on costs of US$14,265 Existing Well Updates The Company has also been informed by the relevant operators of a change in status in the following wells: Well Formation Status NRI % Operator
Bessie Todd Estate GU 31H Cotton Valley Completed 0.17306 Anadarko Peck 1-5H Mississippi Drilling 0.502 Range Resources
Magnolia COO, Rita Whittington said, "Our participation alongside Marathon in Gustafson and Helgeson is in line with our strategy to grow our production and reserves by increasing both the number of wells in which we have an interest, as well as the average size of those interests. "Through drilling we are systematically proving up the large number of leases in producing hydrocarbon formations which we have acquired over the last twelve months, increasing Magnolias proven reserves and thereby creating significant value for shareholders." ** ENDS ** Glossary bopd means barrels of oil per day 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 liters) 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 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 90 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 90 Being Drilled / Completed 15 Elected to participate / waiting to spud 17 TOTAL 122
Notes This table 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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