Magnolia Petroleum : Q4 2016 Operations Update

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

    16 January 2017

                 Magnolia Petroleum Plc ('Magnolia' or 'the Company')              

                               Q4 2016 Operations Update                           

    Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and
    production company, is pleased to announce a quarterly update for Q4 2016 ('the
    Quarter') on its operations across proven and producing US onshore hydrocarbon
    formations, including the Bakken/Three Forks Sanish in North Dakota, and the
    Woodford, Mississippi Lime and the Hunton in Oklahoma. 

    Q4 Highlights to 31 December 2016

      * Two new wells commenced production during the Quarter
      * 153 producing wells in the Company's portfolio as at end of Q4 2016
      * Elected to participate in five new wells during the Quarter
      * Nine wells currently at various stages of development
      * Raised £225,000 to fund drilling commitments on its US onshore leases (see
        announcement of 27 October 2016 for further details)

    Outlook

      * New wells due to come into production in Q1 2017
      * Participation with leading operators in new wells and infill drilling which
        are commercial at lower oil prices
      * Updated Reserves Report as at 1 January 2017 due in the near-term
      * On-going lease acquisition and management activity in line with strategy to
        grow and diversify portfolio

    Magnolia COO, Rita Whittington said, "Thanks to two new wells coming on stream
    during the Quarter and following the divestment of 67 producing wells with
    little or no economic value in 2016, Magnolia ended the year with a portfolio
    of 153 producing wells located in proven US onshore formations.

    "With WTI consistently trading above the US$50 level on the back of the recent
    OPEC meeting and our cost base almost a third lower than it was a year ago,
    Magnolia is well placed to step up our level of drilling activity once a
    recovery in sentiment has become firmly entrenched. With this in mind, we are
    encouraged by the noticeable pick up we are seeing in planned drilling by
    operators in our areas of focus; while on a wider level the near 10% month on
    month increase in the US rig count to 634 in December 2016 bodes well.  Our
    strategy and objective remains the same: to drill alongside established
    operators to prove up the reserves on our leases, and in the process generate
    value for our shareholders."

    Well Developments

    The full list of well developments occurring in the quarter is set out below.

           Well           Formation        Status        NRI %    Operator  
                                                                            
    Sympson 2-7-6XH    Woodford,          Drilled -      0.40    Continental
                       Oklahoma          waiting on              Resources  
                                         completion                         
                                                                            
    Sympson 4-6-7XH    Woodford,          Drilled -      0.40    Continental
                       Oklahoma          waiting on              Resources  
                                         completion                         
                                                                            
    Chalfant 2-7H      Woodford,          Drilled -      0.36    Continental
                       Oklahoma          waiting on              Resources  
                                         completion                         
                                                                            
    Sympson 10-6H      Woodford,          Drilled -      0.44    Continental
                       Oklahoma          waiting on              Resources  
                                         completion                         
                                                                            
    Sympson 8-7-6H     Woodford,       Waiting on spud   0.40    Continental
                       Oklahoma                                  Resources  
                                                                            
    Sympson 3-7-6XH    Woodford,       Waiting on spud   0.40    Continental
                       Oklahoma                                  Resources  
                                                                            
    Sympson 9-7-6XH    Woodford,          Drilling       0.40    Continental
                       Oklahoma                                  Resources  
                                                                            
    Sympson 5-6-7XH    Woodford,          Drilled -      0.40    Continental
                       Oklahoma          waiting on              Resources  
                                         completion                         
                                                                            
    Sympson 7-6-7XH    Woodford,       Waiting on spud   0.40    Continental
                       Oklahoma                                  Resources  
                                                                            
    Sympson 6-6-7XH    Woodford,       Waiting on spud   0.40    Continental
                       Oklahoma                                  Resources  
                                                                            
    Michele Abel       Springer,          Producing      0.13    Marathon   
    H1-2XH             Oklahoma                                             

    The information contained within this announcement constitutes inside
    information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

                                     * * ENDS * *                                  

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

    Steven Snead               Magnolia Petroleum Plc       +01918449 8750 
                                                                           
    Rita Whittington           Magnolia Petroleum Plc       +01918449 8750 
                                                                           
    Jo Turner / James Caithie  Cairn Financial Advisers     [phone] 
                               LLP                                         
                                                                           
    Colin Rowbury              Cornhill Capital Limited     [phone] 
                                                                           
    Lottie Brocklehurst        St Brides Partners Ltd       [phone] 
                                                                           
    Frank Buhagiar             St Brides Partners           [phone] 
                               Ltd                                         

    Notes

    Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration
    and production company.  Its portfolio includes interests in 153 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                                                           153
                                                                           
    Being drilled / completed                                             9
                                                                           
    Elected to participate / waiting to                                  27
    spud                                                                   
                                                                           
    TOTAL                                                               189