Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 24 October 2012 Magnolia Petroleum Plc (Magnolia or the Company) Rig contract signed for drilling first operated well before year end Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce on 22 October it secured a rig to drill its first well as operator in Oklahoma into the Mississippi Lime formation.

Drilling is expected to commence before the year end at a cost of approximately $729,148.00. In accordance with standard industry practice, the Company has completed a Surface Use Agreement with the relevant surface owner and the site is currently being prepared for drilling.

It is anticipated that the spud date for the well will be between 10 November 2012 and the year end. Magnolia COO, Rita Whittington said, "We are delighted to be on course to drill our first well as operator in Oklahoma before the year end.

Along with the progress we continue to make in significantly increasing the number of wells in which we are participating in with established operators in proven oil rich formations, this is an exciting period in Magnolias development as we look to build a significant oil and gas company." ** 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 / James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550 John Howes / John-Henry Wicks Northland Capital Partners Limited +44 (0) 20 7796 8800 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
Notes Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration and production company.

Its portfolio includes interests in 84 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the substantial and proven Woodford and Hunton formations in Oklahoma. Summary of Wells Category Number of wells Producing 84 Being Drilled / Completed 10 Elected to participate / waiting to spud 14 TOTAL 108
Notes *This table excludes four out of six wells acquired as part of the acquisition of 800 gross acres with a 100% working interest in Osage County, Oklahoma, as announced on 10 February 2012.

These four wells are currently shut in and will require a workover programme at some point in the future to bring back into production.
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