Placing of £1.5m

MAGNOLIA PETROLEUM PLC - Placing of £1.5m

PR Newswire

London, May 10

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

Magnolia Petroleum Plc, the AIM quoted US onshore focussed oil and gasexploration and production company, is pleased to announce that it has raised£1.5 million via the issue of 58,800,000 new ordinary shares (the `PlacingShares') in the Company at a price of 2.5 pence per share (the `Placing') and1,200,000 new ordinary shares (the `Subscription Shares') in the Company at thesame price to certain directors (the `Subscription'). Northland CapitalPartners Limited and Cantor Fitzgerald Europe were appointed by Magnolia inrespect of the Placing.

The net proceeds of the placing and subscription will be used to furtherexpedite the Company's existing growth and investment strategy. Specifically,the funds raised will go towards Magnolia's participation in new wells acrossits leases covering over 13,500 net mineral acres in proven US onshore plays,including the prolific Bakken/Three Forks Sanish formations in North Dakota, aswell as the liquids rich Mississippi Lime and Woodford/Hunton reservoirs inOklahoma. The Company is currently reviewing a number of well proposals and, asa result, the Directors anticipate announcing Magnolia's participation indrilling new wells in due course.

Rita Whittington, COO of Magnolia Petroleum, said, "As today's successfulplacing shows, we are not alone in recognising the potential to generatesignificant value by drilling wells with established operators on our acreagein proven US onshore formations. Our recent Competent Person's Report showed a422% increase in the value of our 3P reserves to US$94million and asixteen-fold increase in net production to 122.5 boepd, highlighting theconsiderable progress made during Magnolia's first year on AIM. The increase inreserves covered less than half of our net acreage and, with a portfolio ofover 600 potential drilling locations on our leases combined with the numerousdrilling proposals we continue to receive, we expect a similar step-up inproduction and reserves in our second full year on AIM."

Admission and dealings

The Placing Shares and the Subscription Shares will rank pari passu in allrespects with the Company's existing issued ordinary shares and will beequivalent to 6.6% of the enlarged issued share capital. Application will bemade for the admission of the Placing Shares and the Subscription Shares totrading on AIM and it is expected that admission will occur and that dealingswill commence at 8.00 a.m. on or around 17 May 2013. The Placing isconditional, inter alia, on Admission becoming effective and the PlacingAgreement becoming unconditional and not being terminated, in accordance withits terms.

For the purposes of the Financial Services Authority's Disclosure andTransparency Rules, the Company announces that following the issue of thePlacing Shares and the Subscription Shares, the Company will have 910,672,851Ordinary Shares in issue ("Enlarged Share Capital").

The Company has no ordinary shares held in treasury. The total number of votingrights in the Company will therefore be 910,672,851. This figure may thereforebe used by shareholders in the Company as the denominator for the calculationsby 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 theFSA's Disclosure and Transparency Rules.

Directors' Dealings

The table below sets out the number of shares subscribed for by the Directorsunder the Subscription and their subsequent holdings.

*Includes the interest in ordinary shares held by Snead Family LLC

For further information on Magnolia Petroleum Plc visitwww.magnoliapetroleum.com or contact the following:

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

This table 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.