MAGNOLIA PETROLEUM PLC
USA Focused Oil and Gas Company

Website

epic - MAGP

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.

Recent Analyst Report:

Magnolia Petroleum is an independent oil and gas company based in Tulsa, Oklahoma with non-operated interests in two of the most active unconventional resource plays in North America; the Bakken and the Woodford, and plans to acquire new acreage working as an operator in the nascent Mississippi Lime Play.

Earlier in 2011, Magnolia participated with Chesapeake in‘The Sundance Mississippian Lime’ well which paid back to Magnolia costs within three months of drilling.Magnolia’s recent funding which accompanied its move to AiM will allow the company to begin acquiring leases and to build a position in this upcoming play.

An early entrant into the Bakken and Woodford, Magnolia captured early value and has just scored its most successful well to date with the recent Drone 1-34-27H.This well has recorded excellent initial production rates of 1,199 barrels of oil per day and 441 MCF gas per day; albeit being ‘early days’, we believe it is sufficiently encouraging to suggest a near doubling of engineering projections for the well, with likely formal upgrades to follow.

An early estimate would be that this would generate between $146,000 and $228,000 of net revenue above baseline engineering projections to Magnolia over the well life – all other things being equal.The interesting bit is that this was Magnolia’s first 32- stage frac well and if it turns out to be the case that the success seen in the Drone well is repeated as more complex completions are regularly applied and as evidenced by the Skunk Creek and Stocke well announcements. This may fundamentally improve the underlying valuation of the company.

Our post-money corporate valuation is £10.3m which equates to 1.8p/share based on a sum of the parts valuation.

FULL REPORT HERE:

Hardmans Report 7th December 2011

onwards & upwards :-))

Participation in Additional Well in the Prolific Bakken Formation, North Dakota

Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and
production company, has received a proposal from, and has elected to
participate with, the operator, Slawson Exploration Co Inc., in the drilling of
the Drone 2-34-27H well (`Drone #2'), located in Sections 27 and 34-145N-93W,
Dunn Co., North Dakota. These same sections of the Middle Bakken were
successfully drilled by the Drone #1 well as announced on 4 November 2011 and
resulted in an increase in production attributable to Magnolia across all its
interests from 7 to approximately 20 barrels of oil equivalent per day.

As with Drone #1, Magnolia has a 1.3344% working interest in Drone #2. The
total cost of Drone #2 is estimated at US$9,109,075, at a cost to Magnolia of
approximately US$121,551. The estimated spud date for the well is 15 February
2012.

Magnolia COO, Rita Whittington said, "With the results of Drone #1 still fresh
in our minds we are hopeful that Drone #2 will replicate this success as we
focus on materially increasing our net production. We are now participating in
6 wells in the Bakken Formation, where production continues to increase,
highlighting its prospectivity; over half a million barrels of oil per day are
currently produced, as compared to 130,000 barrels of oil per day in 2003.
Indeed, a US Geological Survey's report estimated that the Bakken held between
3 - 4.3 billion barrels of undiscovered recoverable oil, which gives us much
confidence in the future of this project and our participation in other wells
in the Bakken.

"Outside of the Bakken, we remain highly active in the Three Forks Sanish
Formation in North Dakota, the Woodford/Hunton reservoirs in Oklahoma and the
oil rich Mississippi also located in Oklahoma and I look forward to providing
further updates on all our interests in due course."

Let's hope this keeps rising.

Just bought a few more just to keep going.

ditto

Magnolia Petroleum lifted after announcing participation in further North Dakota well - UPDATE


3:39 pm by Andre LambertiIn a note, broker Northland analyst Andrew McGeary said that while the firm had a small net interest in Drone-2, it was material to Magnolia

---Adds broker comments---

US focused oil and gas company Magnolia Petroleum (LON:MAGP) has elected to participate in a further well in the prolific Bakken Formation in North Dakota.

Operator Slawson Exploration Co Inc has invited Magnolia to take a 1.3344 per cent working interest in Drone-2, which is estimated to spud in mid-February and follows on from the success of the Drone-1 well at the end of last year.

Magnolia also holds a 1.3344 per cent interest in Drone-1, and its success resulted in an increase in production attributable to the group across all its interests from 7 to approximately 20 barrels of oil equivalent per day.

Total cost of Drone-2 is estimated at US$9.11 million, thus costing Magnolia approximately US$121,550.

Magnolia chief operating officer Rita Whittington said: "We are now participating in six wells in the Bakken Formation, where production continues to increase, highlighting its prospectivity; over half a million barrels of oil per day are currently produced, as compared to 130,000 barrels of oil per day in 2003.

“Indeed, a US Geological Survey's report estimated that the Bakken held between 3 - 4.3 billion barrels of undiscovered recoverable oil, which gives us much confidence in the future of this project and our participation in other wells in the Bakken,” she added.

Magnolia listed on AIM last year. Its portfolio includes interests in 64 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the substantial and proven Woodford and Hunton formations and the oil rich Mississippi formation, in Oklahoma.

In a note, broker Northland analyst Andrew McGeary said that while the firm had a small net interest in Drone-2, it was material to Magnolia.

"Depletion rates may factor but If Drone 2 replicates the success of Drone 1, it would suggest to us payback on the modest investment in less than a year," the analyst pointed out.

As at 3.30pm today, shares in the firm were trading up 7.14 per cent, at 1.50 pence each

Another good rise this week.Looking for a push up 2p and with results out next week on the 15th Feb on Drone 2 thing are looking good.Up up and away.

Also a good report in this weeks share mag. Rated as a buy.

U.Boy

Yes I am enjoying this ride. Bought in and added all the way up. Blue sky!!!

Hopefully positive news will see this rise further. Potential multi bagger. imo

More than doubled in less than a month.
2517

More good news keep it going Magnolia.

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

Acquisition of Acreage in the proven Mississippi Formation, Oklahoma

Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and
production company, is pleased to announce that it has acquired a 100% interest
in 800 acres in the oil producing Mississippi Lime formation, Oklahoma and
minority interests in leases over a further 284 net acres.

The transaction is in line with the Company's growth strategy to operate wells
in the Mississippi Formation and follows the successful participation in the
Sundance well with Chesapeake.

Highlights

* The Mississippi Formation is a proven commercial oil and gas system that
has been producing from several thousand vertical wells for more than 50
years - new technology and horizontal drilling has reopened the oil play

* Acquisition of 100% working interests in 800 net acres, including the right
to drill

* Plans to drill at a minimum 3 vertical wells to test the Mississippi on
this acreage in the near future

* Ongoing leasing activity has acquired a further 284 net acres with an
average working interest of 3.4% with further acreage expected to be
acquired in due course

* Total aggregate costs of $230,000 for acquiring the 1,084 acres, in line
with the Company's expectations in the AIM admission document

Magnolia COO, Rita Whittington said, "Today's news represents a key milestone
for Magnolia. The new acreage lies on the Mississippi formation in Oklahoma,
recognised as having the potential to be the next big play in onshore US and
where many of the leading players operating in the Bakken have recently been
busy acquiring large tracts of land. Last year we participated in a well with
Chesapeake that was completed in the Mississippi formation in which we
recovered all of our costs in just three months. In addition, the cost of
drilling in the Mississippi is considerably less than that of the Bakken, and
so offers higher margins and a much reduced payback time. During our due
diligence process, we identified a number of prospects on the acreage and
following further analysis we aim to spud a first well by the end of this
year."

Detailed Information

Prior to the AIM admission, Magnolia entered into an agreement to participate
in the leasing on a series of prospects consisting of approximately 80 square
miles over five separate areas. The 284 net acres (8,400 gross acres), covering
33 individual sections and part of which is within the "Prospect A" area
identified in the Competent Persons Report within the AIM Admission document,
is the product of this agreement and it is anticipated that further acreage
will be acquired under this agreement in due course. The average working
interest acquired to date is 3.4%, but this is expected to change as further
acres are acquired with Magnolia targeting an average percentage of around 25%.

The acquisition of the 800 gross acres with a 100% working interest is outside
of the aforementioned agreement and follows the Company's intention to acquire
material working interests as an operator and so control the timing of the
drilling, proposing and producing of its oil and gas wells. The deal also
includes the right to drill in the Mississippi formation and purchase of
existing infrastructure currently on the site including, tanks, separators, an
injection well, and six "active" wells, producing from a shallower formation,
that could have recompletion and stimulation potential. Magnolia has future
plans to drill at a minimum three vertical wells to test the Mississippi on
this acreage in the near future.

Background Information on the Mississippi Formation, Oklahoma

The Mississippian oil trend is an expansive carbonate stratigraphic trap
producing at shallow depths ranging from 4,500 to 7,000 feet below the surface.
The reservoirs lie at the regional Pennsylvanian/Mississippian unconformity, as
a result of uplift, alteration and erosion of shallow marine Mississippian
carbonates.

The uppermost Mississippian member is a widespread debris-flow deposit formed
through a combination of uplift and erosion of the Mississippi Limestone,
consisting of varying amounts of weathered chert, limestone and dolomite called
the "Mississippi Chat". The "Mississippi Lime" underlies the chat and also
exhibits good reservoir characteristics. The formation was subject to
weathering and digenesis and erosion at the regional unconformity. This results
in greatly varying reservoir properties both horizontally and vertically. Where
the digenesis and weathering have enhanced the reservoir properties, the
porosity is generally 15-20% and can be more than 100 feet thick. Where it has
not been enhanced, the porosity is only 4-6% and has low permeability. This
results in lateral discontinuous reservoirs that are ideally developed with
horizontal drilling technology.

The horizontal wells drilled in the play have lateral lengths of between 2,500
feet and 5,000 feet and are fracture stimulated in 6-12 stages. The fracture
stimulation treatments are not as large as those in the Bakken play or the
other unconventional resource plays such as the Eagle Ford. Because of the
shallow depths and smaller fracture stimulation treatments, the typical
completed well cost ranges from $2.4-$2.9 million. Current drilling times are
approximately 17-28 days from spud to total depth.

The active operators in the play have published significant information on
their results and expectation on the performance of wells in the play.
SandRidge currently has over 650,000 acres under lease and the company has
completed over 60 wells in the play. They estimate they have over 3,000
potential drilling locations. SandRidge's published type curve for well
performance is 409 Mboe with expected well recoveries ranging from 300,000 to
500,000 boe at an average drill and complete cost of $2.7 million including
allocated salt water disposal well costs.

The Competent Persons Report analysed the performance of 56 Mississippi Lime
horizontal wells that were completed between 2007 and early 2011. The wells had
30 day average initial rates ranging from 60 bopd to 750 bopd. The average
estimated oil recovery was 366 Mbo from this sampling of wells

Sold out today with a very nice return. Possibly a mistake but I will return on any dip in SP. Good Luck to all who hold.

http://www.stockopedia.co.uk/content/magnolia-petroleum-coo-interview-q1-fy12-63955/

Excellent read.A slight down turn on friday but I do expect the shares to continue to rise a lot higher in the coming weeks.Good luck to all that hold.

Indeed a good read. Nothing that existing holders didn't already know, but it is a nice read when it is all put together.

Why the big drop today???

Balerboy, a slight pull back was always on the cards - Nothing to worry about imo.

I actually bought back in earlier having sold last week at 1.92.

Good luck

Fast approaching 10:1 in favour of buyers.
2517

Results out in the next couple of days so I would say a rise is in order.

Magnolia Petroleum has acquired an additional 480 gross acres with an average 83.33% working interest in the oil producing Mississippi Lime Formation, Oklahoma.

Also waiting for the test results from Drone #2 well should be in shortly.

With the extra acres and more wells to drill this year this hopefully can only go one way up up up.

Good luck.

Exciting times ahead and still waiting for Drone#2 well results.

Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and
production company, announces it will be participating with leading oil and gas
company, Chesapeake Exploration LLC (`Chesapeake') in four horizontal wells
targeting the Mississippi Formation, Oklahoma, a proven and reopening oil play.
Three of the wells are being drilled within the same spacing unit as the
successful Sundance well.

In addition, and further to the Company's announcement on 20 December 2011, the
Company has received confirmation from the operator that drilling has now begun
on the Zenyatta 2-6 well targeting the Hunton Formation, Oklahoma.

Mississipian Formation Wells

Well # 1

On 10 February 2012 the Company announced ongoing leasing activity had acquired
284 net acres in the Mississippi Formation with an average of 3.4% interest. On
one of the 33 sections, Chesapeake, as operator, has now proposed the drilling
of a horizontal well in which Magnolia holds a 2.3% working interest. The
completed well costs are estimated at US$3,719,505 and Magnolia estimates the
cost to the Company of participating in this well will be approximately
US$85,548.

Wells # 2, 3, 4

Chesapeake has notified the Company that it has commenced plans to drill three
horizontal increased density wells to test the Mississippi Formation within the
same spacing unit as the successful Sundance well, in Woods County Oklahoma.
The Sundance well resulted in payout being achieved in three months, a record
for the Company. Sundance has proved 2P reserves of 431.62Mbbl of oil and
152.52MMcf in gas. Magnolia holds a 0.796% working interest and a 0.597% net
revenue interest in the well. As a result the net 2P reserves attributable to
Magnolia are 2.58Mbbl and 0.91MMcf. The Company is awaiting confirmation from
the operator of the total completed costs associated with the wells.

Zenyatta 2-6 Well, Hunton Formation, Oklahoma

Magnolia has been informed by Avalon Oil & Gas III, LLC, the operator, that the
Zenyatta 2-6 well spudded on 20 February 2012, a few weeks later than
originally anticipated. The Zenyatta 2-6 is an infill well located within the
same spacing unit as the producing Zenyatta 1-6. Zenyatta 2-6, in which
Magnolia has a 1.057% working interest, is targeting the Upper Hunton interval.

Production from the Zenyatta 1-6 well, located in Section 6-8N-2E, Pottawatomie
County, Oklahoma, was established in October 2011 and the well is currently
producing an average of 79.66 barrels of oil per day and 118.18 MCF of gas per
day. The well has gross proved reserves of 77.90 Mbbl.

Rita Whittington, COO of Magnolia Petroleum, said, "The four wells in which we
have chosen to participate with Chesapeake highlight the rapidly growing
interest among leading oil and gas companies in the Mississippi Formation. We
are not alone in the industry in believing the Mississippi has the potential to
become the next big oil play in the US and that it could well prove to be a
reservoir of similar magnitude to the prolific Bakken in which we have both
producing and non-producing interests. This belief lies behind our intention to
operate our first well in the oil play later this year following our recent
acquisition of 1,484 net acres with working interests of up to 100%. Along with
others such as Chesapeake, Magnolia really is at the vanguard of reopening the
Mississippi through the application of modern drilling techniques."

Background Information on the Mississippi Formation, Oklahoma

The Mississippian oil trend is an expansive carbonate stratigraphic trap
producing at shallow depths ranging from 4,500 to 7,000 feet below the surface.
The reservoirs lie at the regional Pennsylvanian/Mississippian unconformity, as
a result of uplift, alteration and erosion of shallow marine Mississippian
carbonates.

The uppermost Mississippian member is a widespread debris-flow deposit formed
through a combination of uplift and erosion of the Mississippi Limestone,
consisting of varying amounts of weathered chert, limestone and dolomite called
the "Mississippi Chat". The "Mississippi Lime" underlies the chat and also
exhibits good reservoir characteristics. The formation was subject to
weathering and digenesis and erosion at the regional unconformity. This results
in greatly varying reservoir properties both horizontally and vertically. Where
the digenesis and weathering have enhanced the reservoir properties, the
porosity is generally 15-20% and can be more than 100 feet thick. Where it has
not been enhanced, the porosity is only 4-6% and has low permeability. This
results in lateral discontinuous reservoirs that are ideally developed with
horizontal drilling technology.

The horizontal wells drilled in the play have lateral lengths of between 2,500
feet and 5,000 feet and are fracture stimulated in 6-12 stages. The fracture
stimulation treatments are not as large as those in the Bakken play or the
other unconventional resource plays such as the Eagle Ford. Because of the
shallow depths and smaller fracture stimulation treatments, the typical
completed well cost ranges from $2.4-$2.9 million. Current drilling times are
approximately 17-28 days from spud to total depth.

The active operators in the play have published significant information on
their results and expectation on the performance of wells in the play.
SandRidge currently has over 650,000 acres under lease and the company has
completed over 60 wells in the play. They estimate they have over 3,000
potential drilling locations. SandRidge's published type curve for well
performance is 409 Mboe with expected well recoveries ranging from 300,000 to
500,000 boe at an average drill and complete cost of $2.7 million including
allocated salt water disposal well costs.

The Competent Persons Report analysed the performance of 56 Mississippi Lime
horizontal wells that were completed between 2007 and early 2011. The wells had
30 day average initial rates ranging from 60 bopd to 750 bopd. The average
estimated oil recovery was 366 Mbo from this sampling of wells.