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

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.

Yes it all looks very positive, my reservation would be that with so many, sometimes miniscule interests, the management could be spreading themselves too thinly.
2517

I don't see it that way George. These small interests require a bit of number crunching that can be done instantly on a spread sheet. If the numbers stack up management says 'yes', signs a cheque and issues the RNS. What takes the time and the effort is assembling the interests in the first place - probably from old family holdings where the families concerned are either unwilling or unable to take up their participation entitlement.

Lord Gnome-----I was thinking more from the viewpoint of management meetings, both within MAGP and also with their various partners.
2517

Significant Increase in Net Daily Production

Magnolia Petroleum Plc, the AIM listed US focussed oil and gas exploration and
production company, is pleased to report a significant increase in net daily
production, following receipt from the respective operators of initial
production rates for three wells targeting the Bakken / Three Forks Sanish
formations, North Dakota, one of which, at 2,303 bopd, is a record for the
Company.

Two Skunk Creek wells located in the Bakken/Three Forks Sanish formations, Dunn
County, North Dakota

Magnolia participated with a 0.5977% working interest and 0.4482% net revenue
interest in the drilling of each well with Kodiak Exploration.

* Skunk Creek 15H targeting the Three Forks Sanish

* Initial Production Rate 2,303 bopd

* 10 bopd net to Magnolia

* Demonstrates the benefit of multi-stage fracking

* Expected to result in significant upgrade in Magnolia's Three Forks Sanish
reserves

* Skunk Creek 14H targeting the Bakken

*
+ Initial Production Rate 212 bopd, within expectations

+ 1 bopd net to Magnolia

Stocke 1-4-9H well, located in McKenzie County, North Dakota

Magnolia participated with Hunt Oil Company with a 3.17% working interest and
2.57% net revenue interest.

* Initial Production Rate 295 bopd, within expectations

* 7 bopd net to Magnolia

* 21 stage frac drilling

* Expecting payout after three years despite mechanical issues leading to
cost overrun

At current levels, the three wells have increased net daily production
attributable to Magnolia by 18 bopd. Based on previously reported production
figures of 20 bopd (7 December 2011), this would increase Magnolia's production
to an estimated 38 bopd. As with all producing wells, production rates are
expected to decline over the life of the wells and the aggregate actual
production figure may be slightly less than the estimated figure of 38 bopd.

Magnolia Petroleum COO, Rita Whittington said, "The 2,303 bopd initial
production rate of the Skunk Creek 15H well is our best ever and graphically
illustrates the enormous potential of this emerging play. Lying beneath the
Bakken, the US government estimates Three Forks Sanish could hold up to 2bn boe
in recoverable oil reserves. The record production rate is highly encouraging
for the three additional Three Forks Sanish and three Bakken wells that are to
be drilled within the same 1,280 acre spacing unit as Skunk Creek.

"While we are advancing our plans to operate our first well in the Mississippi
later this year, we also remain committed to our proven strategy of acquiring
properties in well-known oil plays such as the Bakken / Three Forks Sanish, and
then participating in wells with leading oil and gas companies. As the Skunk
Creek and Stocke wells show, this strategy has the potential to generate
considerable returns on relatively modest capital outlays. Today's jump in net
production and resultant revenues will help fund our participation in
additional wells as well as pursue our ongoing leasing activity. With this in
mind, I look forward to updating the market on our progress."

Detailed Information

Reports have now been received from the operator in respect of the initial
production rates of the two Skunk Creek Wells, located in Dunn County, North
Dakota. Magnolia participated with a 0.5977% working interest in the drilling
of each of these two wells with Kodiak Exploration. The costs of drilling were
in line with original expectations.

According to the operator, the Three Forks Sanish and Bakken Skunk Creek wells
are currently producing at 2,303 bopd and 212 bopd respectively. The production
rate for the Three Forks Sanish well is a record for the Company and
significantly ahead of expectations. The production rate from the Bakken Skunk
Creek well is within the expectations of the Moyes & Co Competent Persons
Report ("CPR").

At the time of the CPR, Magnolia did not have any Three Forks Sanish wells on
its leases and as a result Moyes attached a high risk category to the Three
Forks Sanish reserves. In the CPR, Moyes & Co. singled out the successful
drilling of the Skunk Creek well, being the Company's first Three Forks Sanish
well, as being a trigger for a potential increase in Magnolia's reserve
categories. The successful drilling and subsequent production at the Skunk
Creek 15H well should lead to an upgrade in Magnolia's reserves through the
reclassification of the Three Forks Sanish reserves from "possible" to
"probable". The Company needs to wait at least 6 months before commissioning a
new competent person's report and may wait until after the year end in order to
include results from other wells being drilled in 2012.

As previously reported, application has been made to the North Dakota
Industrial Commission to drill an additional three Bakken wells and three Three
Forks Sanish wells within the same spacing unit. The Skunk Creek wells are in
line with Magnolia's CPR which indicates that the Bakken is being infill
drilled to four wells per 1,280 acres spacing and that 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 the 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 with a 3.17%
working interest. The Stocke well reached total depth on 2 December 2011 and
received a 21 stage frac treatment. The operator has confirmed an initial
production rate of 295 bopd. Due to mechanical issues, the cost of drilling the
well was up to 40% higher than the original estimate. However, as a result of
Stocke's current production levels, the Company still expects the well to
payout after a period of three years.

And yet the share price drops down a touch. Tells me that we have run out of steam and that we have a few stale bulls selling into any strength that appears. Looks like we could be in for the long haul from here.

Completion of Fundraising of £1.3m

Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and
production company, is pleased to announce that it has raised approximately £
1.3 million via the issue of 95,653,740 new ordinary shares (the "Placing
Shares") in the Company at a price of 1.3 pence per share (the "Placing") and
4,461,530 new ordinary shares (the "Subscription Shares") in the Company at the
same price to certain directors (the "Subscription"). The Placing was
significantly oversubscribed.

The net proceeds of the Placing and the Subscription will be used to further
expedite the Company's existing growth and investment strategy as set out at
the time of Admission in November 2011.

Following the recent announcements, the Company intends to seek out further
acquisitions of both producing and non-producing interests in the highly
productive Bakken / Three Forks Sanish hydrocarbon formations in North Dakota
as well as in the substantial and proven Woodford/Hunton reservoirs in Oklahoma
and the oil rich Mississippi Formation located in Oklahoma.

In addition, the Company is reviewing a number of well proposals and will be
participating in new drilling as appropriate.

Magnolia currently has interests in 64 oil and/or gas producing properties. The
Company owns leases in respect of 2,743 net acres in North Dakota and Oklahoma,
1,484 of which were recently acquired with working interests of up to 100% in
Oklahoma where Magnolia also holds a licence to operate.

Rita Whittington, COO of Magnolia Petroleum, said, "It is an indication of the
extraordinary activity taking place in US onshore hydrocarbon plays that we are
receiving multiple proposals to participate in wells each month. Today's fund
raising will go towards our participation in further drilling in prolific plays
such as the Three Forks Sanish where earlier this week we reported our best
ever initial production rate that has, on its own, increased our net barrels of
oil per day by 50%. In addition, we continue to evaluate opportunities to
increase our acreage across all the formations in which we have a presence,
particularly the reopening Mississippi oil play in Oklahoma where we recently
acquired 1,484 net acres with working interests of up to 100% and where we
remain on track to operate our first well later this year.

"The positive response to today's Placing from both new and existing investors
is hugely encouraging and represents an endorsement of the tremendous potential
of our two-pronged growth strategy: participating with leading oil and gas
companies in proven hydrocarbon formations such as the Bakken in North Dakota;
and operating wells ourselves where we hold significantly larger interests. I
look forward to providing the market with updates on our progress in due
course."

Admission and dealings

The Placing Shares and the Subscription Shares will rank pari passu in all
respects with the Company's existing issued ordinary shares and will be
equivalent to 15.0% of the enlarged issued share capital. Application has been
made for the admission of the Placing Shares and the Subscription Shares to
trading on AIM and it is expected that admission will occur and that dealings
will commence at 8.00 a.m. on 9 March 2012.

For the purposes of the Financial Services Authority's Disclosure and
Transparency Rules, the Company announces that following the issue of the
Placing Shares and the Subscription Shares, the Company will have 668,880,985
Ordinary Shares in issue ("Enlarged Share Capital").

The Company has no ordinary shares held in treasury. The total number of voting
rights in the Company will therefore be 668,880,985. This figure may therefore
be used by shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their interest in,
or a change in their interest in, the share capital of the Company under the
FSA's Disclosure and Transparency Rules.

Directors Dealings

The table below sets out the number of shares subscribed for by the Directors
under the Subscription and their subsequent holdings.

Director Subscription Subsequent % of Enlarged Outstanding
Shares Holding Share Capital number of
options and
warrants

Steven Snead 1,538,460 198,974,820 29.75 14,110,000

Ronald Harwood 2,923,070 27,541,250 4.12 1,660,000