Quarterly Operations Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 8 April 2015 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Update for the Period Ended 31 March 2015 Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, is pleased to announce a quarterly update on its operationsacross proven and producing US onshore hydrocarbon formations, including theBakken/Three Forks Sanish in North Dakota and Montana, and the Woodford,Mississippi Lime and the Hunton in Oklahoma. Quarter Highlights * Eight new wells commenced production bringing the total to 184 producing wells as at end of Q1 2015 - a further 33 at various stages of development * Elected to participate in 12 new wells in low cost formations including the Mississippi Lime and Woodford formations in Oklahoma * Updated Reserves Report demonstrates strong reserves growth between 1 July 2014 and 1 January 2015: + 37% and 39% increase in total net proved reserves (`1P') to 985 Mbbl of oil and condensate and 2,905 MMcf gas respectively + US$26.653 million value assigned to P1 reserves as at 1 January 2015 + 10% and 6% increase in net proved and developed producing reserves (`PDP') to 178 Mbbl of oil and condensate and 572 MMcf gas respectively + 39% and 35% increase in total net proved and probable reserves (`2P') to 1,044 Mbbl of oil and condensate and 3,114 MMcf gas respectively 27% and 29% increase in total net proved, probable and possible reserves (`3P') to 1,114 Mbbl of oil and condensate and 3,290 MMcf gas respectively * 30% reduction in corporate overheads and operating costs achieved as part of management's focus on realigning the business in the lower oil price environment * Taking advantage of low oil prices by increasing leasehold in future areas of development * Funding continued growth from Company's own cash-flow where possible, despite volatile oil price environment - participated in new wells totalling US$1.4 million since close of Bank Loan in August 2014 * Increased production - net production stood at 281 boepd as at 1 January 2015 compared to 257 boepd on 1 July 2014 Outlook * New wells due to come into production in Q2 2015 * Planning underway to operate and drill one vertical well in Oklahoma, with a second well possible depending on product and service prices: Both wells, the Roger Swartz #2 and the Shimanek #2 targeting multiple conventional payzones, including the Mississippi Lime/Chat, Redfork Sand and the Lower Skinner Sand * Additional participations with leading operators in new wells and infill drilling which require low breakeven oil prices * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio Magnolia COO, Rita Whittington said, "To ensure Magnolia is well placed forcontinued reserves growth in the current volatile oil markets while maintainingthe Company's financial stability, we have set ourselves three objectives for2015: reduce our cost base; focus on areas with low economic risk; andparticipate in profitable drilling. With this in mind, Q1 has seen muchprogress made and we are proud to have delivered on our objectives fromcash-flows. We have reduced our costs by 30% and elected to participate in 12wells on our leases in proven US onshore formations where the economic case isrobust at today's prices. "We are planning to drill at least one well as operator by year end, with asecond well possible depending on product and service costs. Both wells havelow breakeven oil prices and the potential to materially add to our existingproduction and reserves. With the US rig count close to a three year low, weare taking advantage of current market conditions to secure significant savingsin drilling and service costs, which will enhance each well's alreadyattractive payback credentials. Thanks to the steps we have taken and the assetbacking provided by the US$26.6 million value assigned to our P1 reserves inJanuary 2015, not only will Magnolia ride out the oil price storm, but willalso continue to deliver on its objective to prove up the reserves on its USonshore leases and generate value for shareholders." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Buckner 2 Woodford Waiting to spud 1.71% AEP Loretta 1-30 Various Waiting to spud 8.20% Basis Jana 1-10H Woodford Waiting to spud 1.56% Petroquest Gray 1H Mississippi Waiting to spud 1.86% AEP Bowen 1-30 Various Waiting to spud 8.20% Basis McLain 2 Woodford Waiting to spud 1.90% AEP Buckner 1 Woodford Completing 1.71% AEP McLain 1 Woodford Producing 1.90% AEP Nighswonger Farms 2 Mississippi Fraccing 2.42% Sandridge Lois 1-6H Woodford Producing 1.50% Petroquest Nighswonger Farms 3 Mississippi Producing 2.42% Sandridge The Company only provides details and updates for wells in which it has aworking interest of 1.50% or more. The Summary of Wells table at the end ofeach release includes all wells in which Magnolia has an interest and isupdated as and when a change in status occurs for all wells. The four SkunkCreek wells are included due to their combined costs and being located in NorthDakota. * * ENDS * * 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 Northland Capital Partners +44 20 7796 8800 Limited Lottie Brocklehurst St Brides Partners Ltd +44 20 7236 1177 Frank Buhagiar St Brides Partners 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 183 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 183 Waiting on first sales / IP rates 2 Being drilled / completed 5 Elected to participate / waiting to 26spud TOTAL 216