Magnolia Petroleum

• 22/05/12

  Final Results

• 17/05/12

  Participating in Three Additional Wells & Upda

• 14/05/12

  Production Update

• 12/04/12

  Acreage Acquired in Proven Oil Formations

• 30/03/12

  Total Voting Rights

• 

  22/02/12

  Magnolia outlines plans to build on its Oklahoma success

  The recent drilling success in Oklahoma points the way forward for Magnolia Petroleum. Its participation in the Sundance well with industry giant Chesapeake repaid the initial investment in just three months.

• 22/05/12

  Magnolia Petroleum on track to hit 100 wells target by end-2012

• 26/03/12

  Magnolia Petroleum expects reserve upgrade in first quarter of 2013 - UPDATE

• 26/03/12

  Magnolia Petroleum expects reserve upgrade in first quarter of 2013

• 19/03/12

  Magnolia Petroleum increases interest in Mississippi Lime oil and gas field - UPDATE

• 27/02/12

  Magnolia Petroleum reports significant increase in oil production - UPDATE

Magnolia Petroleum plc is an AIM listed oil and gas production company focused on the acquisition, exploitation and development of oil and gas properties primarily located onshore in the United States. Lead by a highly skilled management team with over 100 years combined experience in the on shore oil and gas industry, the Company already has interests in over 60 producing properties and significant acreage in two major project areas, the potentially game-changing and highly productive Bakken shale in North Dakota and the proven Woodford and Hunton formations in Oklahoma. The Company is also currently targeting the Mississippi Formation in Oklahoma, a known play with proven and substantial reservoirs.

Magnolia Petroleum targets prime areas of onshore US oil and gas development in North Dakota and Oklahoma. The Company has a diverse portfolio of revenue-generating assets including leases on 91,520 gross acres in the potentially game-changing and highly productive Bakken/Three Forks Sanish Formation in North Dakota and the proven Woodford/Hunton oil formations in Oklahoma. Magnolia is also targeting acreage on the Mississippi Formation in Oklahoma, a known play with proven substantial reservoirs.

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Bakken/Three Forks Sanish

Magnolia’s Bakken/Three Forks Sanish Interests target the Bakken formation, which comprises three separate reservoirs, and the Three Forks Sanish Formation which sits above. The interests comprise of leases covering approximately 33,920 gross mineral acres (557 net mineral acres) distributed across a total of 28 sections all of which are located in Dunn, Williams and McKenzie Counties, North Dakota. Of Magnolia’s 64 producing interests, 13 are located in the formations. The Board expects to see four new wells drilled on its acreage in 2012 and 10 in 2013.

The Bakken is being infill drilled to four wells per 1,280 acres spacing unit by other operators. The leases grant Magnolia the right to participate in 92 identified well locations (78 increased density locations) targeting the Bakken as well as 107 identified well locations (82 increased density locations) targeting the Three Forks Sanish.

Magnolia has the opportunity to produce oil on the same lease from both separate formations. The operator is entitled to drill 4 wells on each of the Bakken and Three Forks Sanish formations in each section. At the time of acquisition of the Company’s interests in the Bakken it was unknown that the Three Forks Sanish formation was a separate and distinct reservoir. It is now thought that the Three Forks Sanish formation could be equally or more productive than the Bakken formation.

Based on the current pace of development, the Directors expect it to take several years to develop fully Magnolia’s Bakken/Three Forks Sanish Interest; operators in this area expect to drill 4 wells per unit in each of the Middle Bakken and Three Forks Sanish formations. Magnolia has experienced average stabilised production rates of 400 barrels of oil per day on its multi-stage frac wells. Therefore, based on four wells where drilling is underway and 4 currently planned wells, the Directors expect that the annualised run rate from Magnolia’s planned 8 wells at the end of 2012 will be approximately 34 bopd, based on Magnolia’s net revenue interest.

The leases in the Bakken/Three Forks Sanish Interests have expiry dates between February 2012 and July 2013 (or, where the acreage has a producing well at the end of the primary term, the cessation of commercial production). Should it be in Magnolia’s interest, the Company expects to be able to negotiate extensions.

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Woodford/Hunton Formation

Woodford is an established and proven reservoir located in south east Oklahoma. The reservoir was thought to be mostly depleted until the introduction of horizontal drilling and stimulation technology, which has opened up exciting ventures for Magnolia and other participating companies. These formations have not been exploited to the same extent as the Bakken to date, but several qualified independent exploration companies have now begun aggressive drilling programmes.

Magnolia holds leases in respect of approximately 57,600 gross mineral acres (702 net mineral acres), giving rights to participate in the drilling of wells in 87 sections located in 26 counties in central Oklahoma. The Company has an average working interest of approximately 1.57% and an average net revenue interest of approximately 1.18%.in the 87 sections. Magnolia has received proposals from operators proposing to drill 87 of these sections, and is evaluating its opportunities to participate. These proposed wells are likely to be drilled over the next two to three years, and the Company will focus its participation in the wells that are targeting the oil play.

In addition to the 3 wells currently being drilled, Magnolia expects to participate in a further 5 wells in 2012, with an average working interest of 1.57%. The Directors believe that larger interests in these wells could be available if additional funds become available to the Group.

Magnolia leased, or was assigned, the Woodford Interests from US energy company Enerlex and receives 75% net revenue interests on these assets. The majority of these leases will expire on 1 August 2013 or, if the acreage has a producing well at that date, the cessation of production. If production has not been established by the expiration date, Enerlex has agreed to grant Magnolia an additional three year lease on its mineral interest.

Mississippi Lime Play

Magnolia is currently targeting opportunities in the highly prospective Mississippi formation, a known play with proven and substantial reservoirs in Oklahoma. The Company has also executed an agreement with a geologist to use his data and analysis covering 21,000 gross acres to evaluate other potential sections.

Magnolia has identified 5 prospects across 80 sections (square miles). During 2012, the Company expects to acquire acreage on one or more of these prospects and then, subject to available finance, drill and operate 2 wells on this acreage, with an average working interest of 25 per cent. It is anticipated that these 2 wells will set up an additional 22 drilling locations. There are two objectives in the prospect areas: the Mississippi Chat and the Mississippi Carbonates. Both sections have been productive in and around the prospect areas via vertical well completions, but the vertical well completions were marginally economic. Horizontal wells and modern fracture stimulation treatments will be key to the economic viability of the identified prospect areas.

The Mississippi formation was historically considered tapped out by vertical drilling decades ago. It is only in the last two years that horizontal drilling has established the opportunity for further exploitation of the reservoir. Magnolia’s successful participation with oil and gas major, Chesapeake, in the Sundance well, where the Company recovered all of its costs in just three months, strengthens the Board’s belief that the Mississippi formation has the potential to develop into another transformational oil play.

Magnolia has been granted a permit to become an operator, and it is the intention of the management to acquire more material working interests (of up to 50%) in sections in this formation and other potentially productive formations. As an Oklahoma operator, the Company will be able to control the timing of the drilling, proposing and producing of its oil and gas wells in the State of Oklahoma. The Company will offer the opportunity to participate to the non-operator working interest owners.

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Rita Fern Whittington

Chief Operations Officer

Mrs Whittington is a petroleum landman with more than 32 years’ experience in acquisitions, operations and management of oil and gas properties. She joined Primary Natural Resources I and II as a senior member of the asset management team, where she was jointly responsible for company growth. Both companies were sold in an aggregate eight-year period generating a 3:1 return on equity.

Steven Otis Snead

Chief Executive Officer

Mr Snead is a petroleum landman with 35 years’ experience in the US onshore oil and gas industry. During this period he has owned and operated successful oil and gas operating and services companies. He founded and still owns Enerlex Inc. for the purpose of acquiring and managing royalty interests. He has extensive experience in oil and gas lease acquisition, drilling, development and operations.

John Malcolm Cubitt

Non-Executive Chairman

Dr Cubitt has more than 31 years of commercial experience in the oil exploration and production industry, following a period in academic research and graduate/post-graduate education in the UK and USA. He is a registered Chartered Geologist (CGeol) and his experience includes asset evaluation and project management, as well as board-level strategic and operational direction. He is Managing Director of Woburn Energy Plc (formerly Black Rock Oil & Gas Plc), an AIM-listed oil and gas exploration company, and also a director of various private oil industry consultancy and software companies.

Ronald Sanford Harwood

Non-Executive Director

Mr Harwood has had active involvement in originating and developing projects in oil and gas exploration and production since 1981. He founded Bellwood Petroleum Corporationin 1985, Bellwood Petroleum LL Cin 2007 and Colony Petroleum, LLC in 1990. Colony secured US and international investors to participate in oil and gas exploration and production ventures originated and operated by American and Canadian independent oil and gas companies.

Gavin John Burnell

Non-Executive Director

Mr Burnell has 11 years’ experience of corporate finance, specialising in small-cap companies, and is a director of corporate finance at Northland Capital Partners Limited. He is also the founder and/or director of several companies in varying sectors including Globo Plc (AIM:GBO), Hot Rocks Investments Plc (PLUS:HRIP), Hellenic Capital Plc (PLUS:HECP) and Woodland Capital Limited.

Major Shareholders
As of 2 March 2012 the Company is aware of the following who hold, directly or indirectly, voting rights representing 3% or more of the issued share capital of the Company to which voting rights are set out below.

Shareholder      Number of Ordinary Shares      % of Issued Share Capital

Steven O. Snead198,974,82029.747417%

Sunvest Corporation Limited25,000,0003.737586%

Ronald S. Harwood27,541,2504.117511%

Pershing Nominees Limited22,108,8303.305346%

Director Shareholdings

Shareholder      Number of Ordinary Shares      % of Issued Share Capital

Steven O. Snead198,974,82029.747417%

Ronald S. Harwood27,541,2504.117511%

Gavin Burnell13,950,5032.085648%

Rita Whittington11,400,0001.704339 %

John Cubitt384,6140.07%

The percentage of shares not in public hands is 44.31%.

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