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Magnolia Petroleum Plc - Proposed Disposal of North Dakota Assets

14 June 2018

/ Index: AIM / Epic: MAGP / Sector: Oil & GasMagnolia Petroleum Plc

(‘Magnolia’ or ‘the Company’)Magnolia Petroleum plc

Proposed Disposal of North Dakota Assets

, the US focused oil and gas exploration and production company announces it has signed a non-binding agreement with a third party for the sale of all its wells in which it has varying interests in (together ‘the North Dakota Assets’), being approximately 31 wells, for a total consideration of (‘the Proposed Disposal’).  In addition, the Company announces the sale of its 100% interest in the Roger Swartz #1 well in for approximately .Magnolia Petroleum plcNorth DakotaOklahomaUS$1.5 millionUS$30,000

The Proposed Disposal is in line with the Company’s debt reduction programme and, subject to shareholder consent and completion, will substantially clear a large portion of the outstanding balance of the reserve-based lending facility (‘the Lending Facility’) of its wholly owned operating subsidiary, (‘Magnolia Inc’). As detailed in the Company’s announcement of , the Company embarked on a debt reduction programme in response to the Bank’s decision not to extend the Lending Facility and its requirement that the full outstanding amount be repaid or refinanced by .US$2 millionMagnolia Petroleum, Inc.7 June 20189 July 2018

The Proposed Disposal is conditional on the granting of approval of the Board’s asset disposal programme at the Company’s general meeting which is to be held at ( local time) on at the offices of , , Suite 900, 74103, (‘the General Meeting’).15:30 p.m. BST09:30 a.m.22 June 2018Pray Walker P.C.100 West Fifth StreetTulsa, OKUSA

In the event that the Lending Facility is not repaid or refinanced, it is expected that either the Bank will repossess and sell assets to pay off the debt, which is likely to be at a lower value for Shareholders than the Company could achieve, or the Directors will be required to commence Chapter 11 bankruptcy proceedings with respect to This would also likely lead to a loss of control of the debt reduction programme and reduced value being achieved by the Company for its portfolio of wells. In this scenario, shareholders are unlikely to receive any value for the Company’s portfolio of wells with all proceeds of sales being used to settle creditors and the costs of the Chapter 11 proceedings.Magnolia Inc.

The Company’s current portfolio comprises interests in 108 wells and further details of the interests in wells and their economics were included in the Company’s operations update on and in the circular of .16 April 20187 June 2018

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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

Rita Whittington          Magnolia Petroleum Plc       +01918449 8750

Jo Turner / James Caithie Cairn Financial Advisers LLP +44207213 0880

Daniel Gee                Cornhill Capital Limited     +44207710 9610

Lottie Wadham             St Brides Partners Ltd       +44207236 1177

Frank Buhagiar            St Brides Partners Ltd       +44207236 1177

Quick facts: Magnolia Petroleum PLC

Price: -

Market: AIM
Market Cap: -
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