8 Wells to be Drilled on a Single Unit in Oklahoma

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 17 February 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') Strong Production Growth Expected as Devon Energy Proposes Eight Wells on a Single Lease in Oklahoma Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, has been informed by Devon Energy that atotal of eight wells will be drilled on the same spacing unit in Oklahoma asthe Marion 1-23 HW well, in which Magnolia has a 4.1% interest, to maximise therecovery of reserves from both the Mississippi Lime formation and the lowerlying Woodford. This is the first time Magnolia will be participating ineight wells on a single section in Oklahoma. The Directors expect to receivesimilar proposals for other leases and are therefore confident that the stronggrowth in production and reserves seen to date will continue. The Marion 1-23 HW (`Marion') spacing unit will see four wells drilled to theMississippi Lime formation and a further four (including the Marion) to thelower lying Woodford. The Marion 1-23 HW is currently drilling to the Woodfordand Magnolia has elected to participate in the Rothermel 2MH well (`Rothermel')on the same spacing unit, which will be drilled by Devon Energy to theMississippi Lime. As with the Marion well, Magnolia has a 5.41% workinginterest and a 4.1% net revenue interest in Rothermel. The estimated cost ofthe well is US$3,669,000 with Magnolia's share of costs estimated atUS$198,486. Devon Energy has informed the Company that, in addition to Marionand Rothermel, a further six infill wells, three per formation, will be drilledon the spacing unit to maximise the recovery of reserves from the MississippiLime and Woodford formations. Rita Whittington, COO of Magnolia, said, "With the Woodford formation lyingbelow the Mississippi Lime, we believed it was only a matter of time before wereceived proposals from operators to drill eight wells per spacing unit on ourleases in Oklahoma. Just as it has become established practice to drill eightwells on a single unit to maximise the recovery of reserves from both theBakken and the lower lying Three Forks Sanish formation in North Dakota, webelieve more and more operators will do the same in Oklahoma, targeting theMississippi Lime and Woodford. This has the potential to significantly increasethe number of drilling locations on our leases in Oklahoma, as was the casewith our North Dakota leases, which in turn has positive implications for ourproduction and reserves growth going forward." Existing well updates The Company has been informed by the relevant operators of a change in statusin the following wells in which it is participating: Well Targeted Status NRI % Operator Formation Parmley 1-1WH Mississippi Lime, Undergoing fracture 12.187 Devon Woodford, stimulation Energy Oklahoma Bolay #1-19HW Woodford, Undergoing fracture 2.059 Devon Oklahoma stimulation Energy Giles 1-6H Mississippi Lime, Undergoing fracture 1.22 Red Fork Oklahoma stimulation Early Expiration of Equity Financing Facility (`EFF') The Company mutually agreed with Darwin Strategic to bring forward theexpiration of the EFF to close of business on 14 February 2014. The higherrevenues associated with increased production, together with the recentlysecured US$5 million Reserve Based Lending facility, provide Magnolia withadditional capital to fund participation in new wells across its leases. TheEFF was an important source of finance during the earlier stages of theCompany's growth and the Board of Magnolia would like to thank Darwin for itssupport during that phase. ** ENDS ** Glossary `NRI' means net revenue interest `WI' means working interest For further information on Magnolia Petroleum Plc visitwww.magnoliapetroleum.com or contact the following: Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Jo Turner / James Caithie Cairn Financial Advisers LLP +44 20 7148 7900 John Howes / Alice Lane / Northland Capital Partners +44 20 7796 8800Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177 Notes Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas explorationand production company. Its portfolio includes interests in 142 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma. Summary of Wells Category Number of wells Producing 142 Being Drilled / Completed 16 Elected to participate / waiting to 45spud TOTAL 203