Quarterly Operations Update

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 2 April 2014 Magnolia Petroleum Plc (`Magnolia' or `the Company') Quarterly Operations Updatefor the Period Ended 31 March 2014 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 Mississippi Limeand the Hunton/Woodford in Oklahoma. Quarter Highlights * 151 producing wells as at end of Q1 2014 - an increase of 11 during the period * Elected to participate in 29 new wells including those with larger than average interests such as Rothermel 2MH (5.41%) in the Mississippi Lime Formation and Marion 1-23HW (5.41%) and Peters 1-27H (5.21%) targeting the Woodford Formation, Oklahoma * Significant increase in infill well proposals on the Company's leases held by production in North Dakota and Oklahoma to maximise recovery of reserves on individual spacing units * First proposal received to drill eight wells on one spacing unit in Oklahoma targeting Mississippi Lime and lower lying Woodford formations * Borrowing base limit of Credit Facility raised from US$1.6 million to US$2.1 million to accelerate drilling activity and prove up reserves on leases as a result of strong trading performance and increase in new well proposals Outlook * New wells due to come into production in Q2 2014 - several with higher than average interests including the Parmley 1-1WH well * Further participations in new wells and infill drilling with leading operators expected * 240% expected increase in full year revenues to approximately US$2.4 million, in line with market expectation, with full year EBITDA expected to be ahead of market expectations * On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio * Updated Reserves Report (`CPR') to be issued in Q2 2014 - to include estimates for the Company's average production rates and PDP reserves * + Reserves estimate covers approximately 5,500 net acres out of total of over 13,500 in proven formations, such as the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime, Woodford, Oklahoma Magnolia COO, Rita Whittington said, "During the quarter we added 29 new wellsat various stages of development to our US onshore focussed well inventory. Aswell as interests in 151 producing wells, a further 16 are being drilled orcompleted and 46 waiting to spud. Thanks to our excellent drilling success rateand a higher proportion of lower risk infill wells being drilled on alreadyproducing leases, our 62 wells undergoing development or waiting to spudrepresent a strong pipeline of future revenue growth, on top of the 240%increase for the year ended December 2013. "With operators such as Devon Energy increasingly looking to drill eight wellsper spacing unit in Oklahoma targeting the Mississippi Lime and Woodfordformations, we are confident our well count will continue to rise strongly. Inline with our strategy, the higher production and associated revenues, togetherwith our increased credit facility, will fund further drilling activity on ourleases as we continue to systematically prove up the reserves on our 13,500 netmineral acres in proven US onshore formations." Well Developments The full list of well developments occurring in the quarter is set out below. Well Formation Status NRI % Operator Parmley 1-1WH Mississippi Lime, Undergoing 12.187 Devon Energy Woodford, fracture Oklahoma stimulation Blaser 1-10H Mississippi Lime, Producing 9.375 Cummings Oklahoma Linda 1-4 Wilcox, Oklahoma Producing 9.375 MT. Dora Voise 1-24WH Mississippi Lime, Drilled and 6.4 Devon Energy Woodford, awaiting Oklahoma completion Peters 1-27H Woodford, Waiting to spud 4.2 Paul Gillham Oklahoma Marion 1-23HW Woodford, Completing 4.1 Devon Energy Oklahoma(formerly ?1-23HW) Rothermel 2MH Mississippi Lime, Waiting to spud 4.1 Devon Energy Oklahoma Jimmy1-28H Woodford, Waiting to spud 3.0 Red Fork Oklahoma Bolay #1-19HW Woodford, Undergoing 2.059 Devon Energy Oklahoma fracture stimulation SPS Lucy 1-14H Hunton, Oklahoma Waiting on IP 1.562 Paul Gillham rates Giles 1-6H Mississippi Lime, Producing 1.22 Red Fork Oklahoma Skunk Creek Three Forks Drilled and 0.675 Kodiak4-8-17-13H3 Sanish, North awaiting Exploration Dakota completion Skunk Creek Bakken, North Waiting to spud 0.675 Kodiak4-8-17-13H Dakota Exploration Skunk Creek Three Forks Waiting to spud 0.675 Kodiak4-8-17-14H3 Sanish, North Exploration Dakota Skunk Creek Bakken, North Completing 0.675 Kodiak4-8-17-14H Dakota Exploration 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. The four Skunk Creek wellsare included due to their combined costs and being located in North Dakota. Participation in new wells Well Name Targeted Formation Operator Magnolia's WI/ Net Cost to NRI Magnolia Rothermel Woodford, Oklahoma Devon Energy 5.41%/4.1% US$190,5941-3WH Cummings Mississippi Lime, Chesapeake 4.18%/3.34% US$141,64831-28-12-1H Oklahoma Energy Commencement of production Well Name Targeted Operator Gross IPR Magnolia's Net IPR NRI Formation Giles 1-6H Mississippi Red Fork 122 boepd 1.22% 1.5boepd Lime, Energy Oklahoma * * 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 / Alice Lane / Northland Capital Partners +44 20 7796 8800Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177 Frank 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 151 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 151 Being Drilled / Completed 16 Elected to participate / waiting to 46spud TOTAL 213