Directorate Appointment and Issue of Equity

MAGNOLIA PETROLEUM PLC - Directorate Appointment and Issue of Equity

PR Newswire

London, June 29

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas

30 June 2015

Magnolia Petroleum Plc (‘Magnolia’ or ‘the Company’)

Directorate Appointment and Issue of Equity

Magnolia Petroleum Plc, the AIM-quoted, US onshore-focused oil and gas exploration and production company, is pleased to announce the appointment of Mr. Thomas Wagenhofer to the Board as a Non-executive Director with immediate effect. Mr. Wagenhofer is a highly respected petroleum engineer and oil and gas investment specialist with over 20 years’ experience in the global E&P sector.

Mr. Wagenhofer is a founder and Technical Lead of Giant Capital (‘Giant’), a leading provider of growth capital to high-quality, undervalued oil and gas companies. Giant funds the acquisition, appraisal, and development of hydrocarbon reserves. Thomas is a member of Giant’s investment committee and also acts as Technical Advisor on E&P investments to many investor clients. At Giant, he is responsible for conducting technical and commercial due diligence on potential investment opportunities and also works closely with the management of investee companies to assist with capital deployment.

Prior to founding Giant in 2011, Thomas was Senior Managing Director of Metals and Energy Capital at Macquarie Bank Limited, where he acted as Technical Lead on oil and gas transactions. Other positions he previously held include: Vice President of Ryder Scott Company (1999-2004) where he was responsible for third party reserves studies and reservoir development projects; and Research Engineer at Atlantic Richfield Company (1996-1998) where his duties included asset valuation and production optimisation studies. Thomas is a certified Professional Engineer in Texas, US. He holds an MSE in Petroleum Engineering from the University of Texas and a BS in Petroleum Engineering from the University of Alaska.

Rita Whittington, COO of Magnolia, said, “We are delighted to welcome Thomas to the Board. His extensive experience and proven expertise in the oil and gas sector from a technical as well as a transactional perspective will prove invaluable, as we look to scale up Magnolia’s growth profile. With Thomas’ industry background in mind, we view his decision to join the Board, and invest in the Company, as an endorsement of Magnolia’s existing portfolio of proven reserves of 985 Mbbls of oil and 2,905 MMcf of gas which have been independently valued at US$26.65 million, as well as the growth strategy we have put in place. This is an exciting period for Magnolia with drilling due to commence shortly on our own operated wells in which we have 94% working interests, and I look forward to providing further updates on our progress.”

Mr. Thomas Wagenhofer, aged 44, currently holds or has held the following directorships and partnerships in the last five years:

There are no further disclosures in relation to Mr Wagenhofer pursuant to Schedule 2(g) of the AIM Rules for Companies.

Issue of Equity

Mr. Wagenhofer has elected to receive the majority of his annual fee in new ordinary shares of the Company. Pursuant to this arrangement the Company has agreed, subject to his on-going appointment as a Director of the Company, to issue 428,571 new ordinary shares on a quarterly basis to Mr. Wagenhofer for the first year of his appointment. Pursuant to this arrangement the Company has today issued 428,571 new ordinary shares (‘Fee Shares’) to Mr. Wagenhofer.

Furthermore, Mr. Wagenhofer has today invested in Magnolia Petroleum subscribing for 2,857,142 new ordinary shares of the Company at 0.7p per share (‘Subscription Shares’), being the same price as the last fundraising completed by the Company.

Mr. Wagenhofer has an interest in 3,285,713 ordinary shares, representing approximately 0.3 per cent of the issued share capital of the Company.

 Admission

The Fee Shares and the Subscription Shares will rank pari passu in all respects with the Company's existing issued ordinary shares. Application will be made for the admission of the Fee Shares and the Subscription Shares totalling 3,285,713 ordinary shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 4 July 2015. The issue of the Fee Shares and the Subscription Shares is conditional, inter alia, on Admission becoming effective.

For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules, the Company announces that following the issue of the Fee Shares and the Subscription Shares, the Company will have 1,056,815,707 Ordinary Shares in issue (‘Enlarged Share Capital’).

The Company has no ordinary shares held in treasury. The total number of voting rights in the Company will therefore be 1,056,815,707. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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For further information on Magnolia Petroleum Plc visit http://www.magnoliapetroleum.com/ or contact the following:

Notes

Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration and production company. Its portfolio includes interests in 195 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