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

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.
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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

And that placing explained the weakness in the share price. Smart move by management to raise funds after such a spike - even if it did stuff the price for a period. Hopefully this will put a floor under the stock. Onwards and upwards.

Acquisition of Acreage in the proven Mississippi Formation, Oklahoma &
Operations Update

Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and
production company, is pleased to announce a positive update across its
portfolio of interests focused on proven and producing US onshore hydrocarbon
formations, including the prolific Bakken / Three Forks Sanish Formations in
North Dakota and the Hunton / Woodford and Mississippi Formations in Oklahoma.

Highlights

* Acquisition of an oil and gas lease comprising a 12.5% working interest in
640 acres (80 net mineral acres), with a 9.375% net revenue interest. This
lease is located in Oklahoma, within the boundaries of the prolific
Mississippi play.

*
+ Operator of the acreage is Chesapeake Energy Corporation
(`Chesapeake'), who has already drilled, fracture stimulated and is
currently completing one well covering this lease. Production rates to
follow

+ Cost of $587,120 for acquiring the acreage including share of cost of
participation in Chesapeake well

* Participation in additional well targeting the Bakken, North Dakota, a
proven formation with an estimated 4.3 billion in recoverable reserves

* Zenyatta 2-6 well spudded, targeting the oil producing Hunton Formation,
Oklahoma - initial production rate to follow in the next few months

Magnolia COO, Rita Whittington said, "Today's land acquisition along with our
participation in two further wells adds to our highly prospective portfolio of
assets that comprises producing and non-producing interests in proven oil plays
such as the Bakken / Three Forks Sanish, North Dakota and the Hunton and
Mississippi Formations in Oklahoma. We currently have interests in 69 producing
assets and with our recently raised funds, we are well placed to significantly
increase this total and in turn achieve a step up in revenues generated."

Full Details

The Mississippi Formation

Magnolia acquired a 12.5% working interest in 640 acres (80 net mineral acres)
with a 9.375% net revenue interest. The Company has been informed that
Chesapeake has already drilled and fracture stimulated a well covering this
acreage. Chesapeake is currently finishing up the completion process and
installing production equipment to place this well on line for production. The
total cost of the acquisition is US$587,120 and includes Magnolia's share of
the cost of the Chesapeake well.

The Mississippi Formation is a proven commercial oil and gas system that has
been producing at shallow depths ranging from 4,500 to 7,000 feet below the
surface from several thousand vertical wells for more than 50 years. New
technology and horizontal drilling has reopened the oil play.

The Bakken, North Dakota

The Company has received a proposal and has elected to participate in the
drilling of Quill 2-10-3H. The well is to be drilled on the same spacing unit
as Quill 1 that is producing from the Bakken formation. The operator of the
well is Hunt Oil Company. The total cost of drilling the well is estimated to
be US$8,234,000. Magnolia has a 0.38786% working interest in the well and as a
result the Company's share of the costs is estimated at US$31,936.47.

Quill 1 was completed with an eight stage frac with an initial production of
756 barrels of oil per day and 492 MCF of gas per day. By comparison, the Quill
2-10-3H will be completed with a 30 stage frac, and as a result, the directors
believe that production from the new well should be substantially higher.

Hunton Formation, Oklahoma

Magnolia, with its 1.057% working interest, participated with Avalon Oil & Gas
III, LLC in an infill well, Zenyatta 2-6, located within the same spacing unit
as Zenyatta 1-6, to test the Upper Hunton interval. Further to its announcement
of 21 February 2012, the Company has been informed by the operator that the
drilling of Zenyatta 2-6 has now been completed. Production figures for the
well are expected to be received in due course.

The Zenyatta 1-6 well, located in Section 6-8N-2E, Pottawatomie County,
Oklahoma was drilled in the Hunton Formation. Production was established in
October 2011 during which time the well produced 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.

Anyone fancy a top up at the placing price? Plenty of stock on offer. Trying to raise funds for more, but what to sell?

Sounds too much like hawk for me, still counting the cost of that dabble.,.

Doubled up yesterday at 1.29p. I don't see this as a Hawk. This outfit may be very small, but it is the real deal.

Good RNS update today, more acrage aquired and plenty going on, should be hearing a lot more in the next few weeks.. So onwards and up!!!!..

Following the resounding success of our first two events, Mining and Resources Quarterly is proud to offer another chance for you to meet, hear from and ask questions of key senior management figures from carefully selected companies.



This event offers an unique opportunity not only to hear about the latest plans from some of the most exciting companies in the sector, but also to put your questions to the people that matter. What is more, there is a free drinks and canapés reception where you can mingle with industry leaders and your fellow investors. Make sure you don't miss this unique opportunity to get the answers you need from the people who make the market.

NEXT EVENT

Date: Wednesday 23rd May 2012

Venue: Novotel, London Tower Bridge, 10 Pepys Street, London, EC3N 2NR

Registration: 6.00pm

Presentations: 6.30pm followed by a drinks/canapés reception



Companies Presenting:



Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration and production company with interests in 70 producing properties and non-producing assets covering 16,515 gross acres and 3,000 net acres primarily located in the oil rich Mississippi play in Oklahoma, 4,850 gross acres and 375 net acres in the highly productive oil play in the Bakken/Three Forks Sanish fields in North Dakota as well as the substantial and proven Woodford and Hunton plays, in Oklahoma. The Company focuses on producing areas where the application of horizontal drilling and/or hydraulic fracturing and other techniques offers scope to significantly improve recovery/flow rates. Targeting proven areas lowers exploration risk, illustrated by Magnolia's tremendous success rate achieved so far - 27 out of the first 28 wells in which the Company has participated in have been commercially successful. In addition Magnolia focuses on fields that predominantly produce oil rather than gas securing higher revenues and margins as a result of the higher oil price.



Kea Petroleum (AIM:KEA) is an oil and gas explorer in New Zealand and Australia. Taranaki, New Zealand where Kea is currently exploring has a long history of proven reserves. In 2010 New Zealand Energy Corp and Tag Oil both struck oil resulting in share prices increasing 165% and 100% respectively.

2012 has seen the beginning of Kea’s most exciting and active year. On 10 April, it struck oil and is awaiting equipment to test a field with a potential between one and three million barrels. Two weeks later it commenced drilling its second 2012 well. Later drilling will include one co-funded by Methanex, the world’s largest supplier of methanol.

Ian Gowrie-Smith, Chairman will detail Kea’s exciting prospects.



Click here to go to Event
More companies to be announced

Wish I could be there to see it, but it is a long way to go - even to hear Rita speak.

lord this is a good company but bewar of dilutio it is coming

I don't think there'l be a fundraising in the near term unless they've seen something that they see as a must have!, the last fundraising was on the 2/3/12 when they raised £1.3mil.

I'm not saying there won't be a fundraising in the future, but if their past farmins and purchases of acrage is anything to go by then BRING IT ON!!!!!....

Dilution is a fact of life with investing in small oilers. The best anyone can hope for is that the company continues with the good news flow and that any future share offerings are at progressively higher prices.

Did anyone attend last night's presentation?

Sparkling performance today, it would seem that the presentation went well, although I didn't attend.
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Another good rise today.It seams that all 74 wells be it only a small % in each of them
are doing well.The sky's the limit.
Long may it continue.

Results from the Thomason well due any time now. It can only be this that is driving the volume and the share price. The buying is incessant.