🕐07.12.11 - 09:27 Uhr

MAGNOLIA PETROLEUM PLC - OPERATIONS UPDATE FROM HIGHLY PRODUCTIVE AND POTENTIAL
LY GAME CHANGING BAKKEN/THREE FORKS SANISH HYDROCARBON FORMATIONS, NORTH DAKOTA



Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 7 December 2011 Magnolia Petroleum Plc (Magnolia or the Company) Operations Update in the Highly Productive Bakken/Three Forks Sanish hydrocarbon formations, North Dakota Magnolia Petroleum Plc, the AIM listed US focussed oil and gas exploration and production company, is pleased to announce a positive update on its operations in North Dakota where the Company has a portfolio of interests in the potentially game-changing and highly productive Bakken/Three Forks Sanish hydrocarbon formations. Overview
* Successful drilling of the two Skunk Creek Wells located in the Bakken/Three Forks Sanish formations, Dunn County, North Dakota * Magnolia participated with a 0.59% interest in the drilling of each well with Kodiak Exploration * Highly encouraging initial shows and subsequent application made to drill an additional three Bakken wells and three Three Forks Sanish wells within the same 1,280 acre spacing unit * On completion of these further six wells, a substantial increase in overall production attributable to Magnolia is expected * Completion of both wells expected to commence by end of 2011 - between 23 and 24 multi stage frac techniques are to be performed on the two wells * Stocke 1-4-9H well, located in McKenzie County, North Dakota, now reached total depth, awaiting completion * Magnolia participating with Hunt Oil Company with a 3.17% working interest Magnolia Petroleum COO, Rita Whittington said, "We are delighted to be able to provide our shareholders with such a positive update on our operations so close to our listing on AIM last month.

The successful drilling of the two wells at Skunk Creek and reaching total depth in the Stocke well provides us with huge encouragement as we continue to participate in drilling in the highly productive Bakken/Three Forks Sanish formations.

We are particularly excited about the Skunk Creek Three Forks Sanish well, as Moyes & Co.

our Competent Person singled out this well as a trigger for a significant shift in Magnolias reserve categories once the well has been successfully drilled and is producing. "Modern technology such as multi-stage frac techniques used in the completion of horizontal wells has increased production tremendously in non-conventional oil and gas plays.

Magnolias participation in the Drone well, completed as a 30 stage frac, yielded an initial production of 1,199 barrels of oil per day, and nearly trebled Magnolias net production interests to approximately 20 barrels per day.

We are extremely pleased with the Companys participation in successful drilling programmes to date and our highly experienced Board anticipates the Stocke and Skunk Creek wells will prove to be highly productive and will add to our outstanding success rate to date.

With this in mind, I very much look forward to updating shareholders on our progress."
Detailed Information
Reports have now been received from the operator in respect to the Skunk Creek Wells, located in Dunn County, North Dakota.

Magnolia participated with a 0.59% interest in the drilling of each of these two wells with Kodiak Exploration.

The primary targets for these wells were the Three Forks Sanish and the Bakken Formations.

Both wells have successfully been drilled and are awaiting completion.

According to the operator, they are highly encouraged by the shows and have applied to the North Dakota Industrial Commission to drill an additional three Bakken wells and three Three Forks Sanish wells within the same spacing unit.

Multi-stage frac techniques between 23 and 24 stages are to be performed on these wells.

This information is in line with Magnolias Competent Persons Report (announced 25 October 2011 and contained, in full in the AIM admission document) which indicates that the Bakken is being infill drilled to four wells per 1,280 acres spacing and the Three Forks Sanish is also starting to be developed in the area at four wells per 1,280 acre spacing unit.

This infill drilling would allow for an additional 78 Bakken and 107 Three Forks Sanish locations for a total of 108 wells in the Bakken and 108 wells in the Three Forks Sanish.

Once permission is obtained and these initial six wells are drilled, the Company expects that its overall production interests will increase substantially.
In addition, Magnolia participated with Hunt Oil Company in the drilling of the Stocke 1-4-9H well, located in McKenzie County, North Dakota.

The Stocke well reached total depth on 2 December 2011 and is awaiting completion.

This well will have a 21 stage frac treatment.

Magnolia has a 3.17% working interest in this well, which is nearly two and a half times larger than Magnolias 1.34% working interest in the Drone well which yielded total initial production of 1,199 barrels of oil per day (as announced on 4 November 2011). Completion on the Skunk Creek and Stocke wells described above are expected to start by year-end. * * ENDS * * For further information on Magnolia Petroleum plc visit www.magnoliapetroleum.com or contact the following: Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Antony Legge Daniel Stewart & Company Plc +44 (0) 20 7776 6550 Charles Vaughan Northland Capital Partners Limited +44 (0) 20 7796 8800 Hugo de Salis St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
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