Operations Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 17 October 2014 Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations Update Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to provide an operations updateacross its portfolio of interests in proven US onshore formations including theBakken, North Dakota and Woodford and Mississippi Lime, Oklahoma. This updateis in line with the Company's strategy to rapidly build production throughdrilling and prove up the reserves on its leases. Commencement of production at the following wells: Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI% Formation Partagas Mississippi Cisco 192 bopd 3.76 7.2 bopd1-1H Lime, Oklahoma Coffman Mississippi Chesapeake 566.16 1.17 6.6 boepd26-27-11 1H Lime, Energy boepd Oklahoma Production from the above wells is expected to decline from initial elevatedlevels The Company is participating in the following wells at a net aggregate cost ofUS$383,579: Well Name Targeted Operator Magnolia's Net Cost to Status Formation WI/NRI% Magnolia Van Meadows Mississippi Dorado E&P 8.33/6.77 US$315,136 Waiting1H Lime, Oklahoma Partners to spud B&W 1-24H Mississippi Lime B&W 1.5%/1.23 US$41,918 Waiting /Woodford, to spud Oklahoma Woodrell Mississippi Greg Hall 3.51/2.64 US$26,525 Waiting1-15 Lime, Oklahoma Oil Co. on frac(vertical) Rita Whittington, COO of Magnolia, said, "The initial production rates of theCoffman and Partagas wells continue the recent run of excellent results we haveseen from wells drilled to the Mississippi Lime formation in Oklahoma. Webelieve this is down to our strategy of participating in wells targetingproductive wedges alongside proven operators. Thanks to the combination ofrelatively cheap drilling costs due to its shallow depths and less tightgeology compared with other US onshore formations, strong flow rates beingachieved for new wells and the liquids rich nature of the play, the MississippiLime has a low breakeven oil price and is therefore well suited to the currentvolatile price environment. With this in mind and as illustrated by the VanMeadows, Woodrell and B&W wells, we continue to receive multiple proposals todrill new wells across our 5,000 net acres in the play. "As a result of our focus on low cost proven US onshore formations such as theMississippi Lime, together with our cost-light corporate structure, Magnolia'scost to produce is very low at less than US$30 per barrel. Like all oilcompanies, we would prefer to see higher oil prices, but even with pressure onthe oil price Magnolia's margins are very healthy. We are therefore well placedto continue to roll-out our strategy of participating in new drilling to proveup the reserves on our leases and I look forward to providing further updateson our progress in due course." Existing well updates The Company has been informed by the relevant operator of a change in status inthe following well in which it is participating: Well Targeted Status NRI % Operator Formation Nighswonger Mississippi Lime, Drilling 2.42 SandridgeFarms 2 Oklahoma Energy Yani 1-31H Hunton, Oklahoma Drilling 2.32 Equal Energy The Company only provides details and updates for wells in which it has aworking interest of 1.5% or more. The Summary of Wells table at the end of eachrelease includes all wells in which Magnolia has an interest and is updated asand when a change in status occurs for all wells. ** ENDS ** Glossary `boe' means barrels of oil equivalent: a unit of energy based on theapproximate energy released by burning one barrel (42 US gallons or 158.9873litres) of crude oil. There are 42 gallons (approximately 159 litres) in one barrel of oil, whichwill contain approximately 5.8 million British Thermal Units (MBtus) or 1,700kilowatt hours (kWh). The value is necessarily approximate as various grades ofoil have slightly different heating values. BOE is used by oil and gascompanies in their financial statements as a way of combining oil and naturalgas reserves and production into a single measure. `boepd' means barrels of oil equivalent per day `bopd' means barrels of oil per day, Abbreviation for barrels of oil per day, acommon unit of measurement for volume of crude oil. The volume of a barrel isequivalent to 42 US gallons `IPR' means initial production rates `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 8750Rita 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 7382 1100 Limited Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177Frank 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 163 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 163 Waiting on first sales / IP rates 8 Being drilled / completed 10 Elected to participate / waiting to 50spud TOTAL 231