Acquisition of 985 Net Acres in Bakken Formation

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 gasexploration and production company, is pleased to announce that it has agreedto acquire 985 net mineral acres in Montana for a cash consideration ofUS$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 inNovember 2012 into Daniels County, Montana, we are pleased to further extendour interest in the area with the acquisition of a further 985 net mineralacres.

"We believe the area has the potential to become a significant extension forproduction from the Bakken/Three Forks Sanish formations and a number ofcompanies 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 +44 (0) 20 7796 8800 Limited Lottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177 Ltd NotesMagnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas explorationand production company. Its portfolio includes interests in 86 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 WellsCategory Number of wells Producing 86 Being Drilled / Completed 15 Elected to participate / waiting to 13spud TOTAL 114

This summary excludes four out of six wells acquired as part of the acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.