Disclaimer

2. Disclaimer This presentation is being made by or on behalf of Magnolia Petroleum Plc (“Company”). This presentation has not been approved for issue as a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and is being supplied in the United Kingdom only to (i) persons who have professional experience in matters relating to investments (being "investment professionals" within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO")) or (ii) persons falling within Article 49(2) ("high net worth companies, unincorporated associations etc") of the FPO or (iii) persons who are otherwise permitted by law to receive it. The information contained in the presentation is not intended to be viewed by, passed on or distributed (directly or indirectly) to, any other category of persons . Daniel Stewart & Company plc (“DS”) is authorised and regulated by the Financial Services Authority and will be acting as nominated adviser and broker to the Company in connection with the proposed placing of ordinary shares in the capital of the Company and admission of those ordinary shares to trading on the AIM market of London Stock Exchange plc. Neither the presentation, nor any part of it, nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in any connection with or act as an inducement in relation to a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities. Recipients of this presentation who decide to subscribe for the new ordinary shares in the Company are reminded that any application to so subscribe may only be made on the basis set out in the formal placing letters and not on the information contained in this presentation. In the particular, details included in this presentation are subject to updating, revision, verification and amendment and refer to events as having occurred which have not occurred at the date of this presentation but which are expected to happen in the future. This presentation does not constitute a recommendation regarding the securities of the Company. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or on its completeness. No representation or warranty, express or implied, is given by the Company or DS or their respective directors, officers, employees, agents or advisers as to the accuracy, fairness, sufficiency or completeness of the information, opinions or beliefs contained in this presentation and, save in the case of fraud, no responsibility or liability is accepted by any of them for any loss, cost or damage suffered or incurred as a result of the reliance on such information, opinions or beliefs. 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3. Magnolia Petroleum Plc is an AIM listed oil and gas exploration and production companythat acquires and develops oil and gas properties located onshore in the United States in proven fields including the Bakken / Three Forks Sanish Formations located in North Dakota and the Mississippi Lime and Hunton / Woodford Formations located in Oklahoma

4. Overview • AIM quoted cash generative oil and gas exploration and production company focussed on oil • Strategy to acquire leases in US onshore hydrocarbon formations such as the Bakken (North Dakota) Mississippi Lime and Woodford/Hunton (Oklahoma) where technology has transformed recovery/flow rates • Holds 5,180 net acres on which there are currently 74 producing wells • Further significant growth in 2012 – to participate in and operate wells with larger working interests in the re-opening Mississippi Lime Formation (Oklahoma) • Commercial relationships with leading oil and gas companies such as ExxonMobil, Marathon Oil and Chesapeake Energy • Highly experienced management team skilled in the acquisition and development of oil and gas properties – leases secured at discounts to market value

5. Board of Directors

6. Key Data

7. Two Phase Growth Strategy

8. Existing Interests Bakken / Three Forks Sanish Formations, North Dakota Mississippi Lime / Woodford / Hunton Formations, Oklahoma Gas wells Oil wells

9. The Bakken / Three Forks Sanish Formations (North Dakota) • The Bakken: • 3.0 - 4.3 billion boe estimated recoverable oil reserves (U.S. Geological Survey - USGS) • Covers 200,000 square miles of the subsurface • Horizontal drilling and fracture stimulation technology has reopened the play • Daily production estimated to exceed 700,000 bopd by 2013 and 1.2 MMbopd by 2019 • 4,000 active wells – the majority drilled in last five years • Largest Bakken field produces circa 30,000 bopd from 60 wells • Three Forks Sanish (TFS): • Two billion boe estimated recoverable oil reserves (USGS) • A separate reservoir beneath the Bakken • At early stage of development • Three possible shelves • Initial production rate of first TFS well 2,303 bopd, a record for the Company

10. 3-D visual of TFS & Bakken

11. Activity in the Bakken / Three Forks Sanish 4 wells preparing to be drilled on Magnolia’s acreage – yet to elect to participate

12. Magnolia’s Bakken / Three Forks Sanish Land Package • 33,920 gross acres across 28 sections – 557 net acres • Average working interest 1.46% – average net revenue interest 1.10% • Acreage acquired at $1,500 per net mineral acre – current price $7,000 • Benefits of early mover advantage • 197 Proven development locations on current Bakken (92) and TFS acreage (105) • Low exploration risk • Scope to drill four wells per unit in each formation due to TFS lying beneath the Bakken

13. Magnolia’s Current Production in Bakken / TFS • 21 oil and / or gas producing properties located in Bakken and TFS • Over 800 bopd – average initial production on wells drilled on this acreage in various drilling and completion stages • Seven new wells drilled • On course for significant step change in annualised daily production attributable to Magnolia by end of 2012 • Working interests up to 3.12% – net revenue interests 2.35% • Majority of acreage in fairway of Marathon Oil’s Bakken Shale development • Marathon operator of majority of wells “delivering on phase one” In March 2012 North Dakota became the number 2 oil producing state after Texas

14. Woodford / Hunton Formations (Oklahoma) Oklahoma Magnolia Project Area – Canadian, Pottawatomie, Grady, Cleveland, Seminole and Stephens Counties

15. The Woodford / Hunton Formations (Oklahoma) • The Woodford contains 1,281 producing wells after only four years of active drilling – majority in the dry gas window • Horizontal drilling and fracture stimulation technology have reopened these reservoirs • Activity in the Woodford Oil window play increasing – Continental Resources and Newfield, two leading independent oil and gas companies, among the most active • Magnolia elected to participate in two wells with Cimarex, a leading independent oil and gas exploration and production company focussed on the US • Ability to drill multiple wells in each formation per unit “These plays fit our criteria of good investment returns and solid long-term growth potential.” Thomas Jorden, CEO of Cimarex Energy Co. (Source: Tulsa World)

16. Magnolia’s Woodford / Hunton Land Package & Production • 57,600 gross acres across 87 sections – average working interests up to 2.65% – average net revenue interest 2.36% • 19 oil and / or gas producing properties located in Woodford / Hunton covering Oklahoma, Texas • 7 new wells now producing in the play • Formations not exploited to the same extent as the Bakken • 87 well proposals received on current acreage • Likely to be drilled over the next two to three years • Magnolia to focus on participating in wells targeting the oil play • Estimated Ultimate Recoverable Reserves (EUR) per well reported in excess of 400,000 boe • Initial production on well drilled on this acreage was over 300 bopd “delivering on phase one”

17. Magnolia’s Woodford/Hunton Acreage Zenyatta 2-6 Well, operated by Avalon, targets the Hunton Formation. Magnolia has a 1.057% working interest ● Magnolia’s Acreage

18. Magnolia’s Current Producing Assets • 74 oil and / or gas producing properties • Excellent success rate: • Prior to AIM admission - positive return on capital on 22 out of first 23 wells as per the CPR – US$503k invested in 23 wells – currently valued at US$1,512,000 (the last five wells not included as just completed) • $105,000 revenues per quarter generated which excludes new wells – revenues cover corporate overheads • 24 months average payout on wells drilled • 1st well in Mississippi Lime Formation – 3 months • Producing assets volumetrics (as per CPR, prior to AIM admission): • 46.6MBO and 198.2MMCF proved reserves • 68.7MBO and 249.8MMCF proved and probable reserves (2P) • 975.6MBO and 1,175 MMCF proved, probable and possible reserves (3P) “delivering on phase one”

19. Phase Two: “The next play” – The Mississippi Lime Formation • An oil and gas bearing, liquids rich formation in central Oklahoma • Identified by management as the next big play in onshore US • Field has been producing from several thousand vertical wells for more than 50 years • Horizontal drilling and fracture stimulation technologies have reopened these fields • Short-term payouts with long-term reserve potential • Participated in a horizontal well with Chesapeake Energy – 3 month payout • Initial production on wells drilled on this acreage reported up to 750 bopd

20. 3-D map of Mississippi Lime Formation

21. The Mississippi Lime Formation • Exhibits good reservoir characteristics ideally suited to horizontal drilling • Horizontal wells and modern fracture stimulation treatments unlocks the commercial viability of identified prospects • Relatively low drill costs between $2.4-$3.5 million: • Horizontal wells have relatively short lateral lengths of between 2,500ft and 5,000ft • Fracture stimulated in 6-12 stages – less than those in the Bakken play • Relatively shallow depths – 4,500ft to 7,000ft below surface • Current drilling times approximately 17-28 days from spud to total depth • Magnolia’s operatorship allows control of timing the proposing, drilling, and producing of its wells in Oklahoma

22. Magnolia’s Mississippi Formation Interests • Acquired 3,540 net acres with larger average working interest through ongoing leasing activity • Plans to drill a minimum three vertical wells on this acreage in the near term • 2 wells currently producing • 1 new well • 3 wells in various stages of drilling and/or completion • 5 wells elected to participate and waiting to be spud • At least an additional 5 wells expected in 2012

23. Magnolia’s Mississippi Acreage ● Magnolia’s Acreage

24. Participating in Four Mississippi Formation Wells Initial production rates awaited from operator Chesapeake for Thomason well in which Magnolia has 9.375% Net Revenue Interest

25. Milestones to date       

26. Future Milestones

27. Value Drivers

28. Summary • Low risk / high return business model focused on proven onshore US oil plays with low overheads • US predicted to become “the world’s largest producer of hydrocarbon liquids by 2020” (Citi Global Perspective & Solutions, April 2012) • Already producing and generating revenues • Established commercial relationships with leading oil and gas companies including ExxonMobil, Marathon Oil and Chesapeake Energy • 74 producing wells – 3 further wells in drilling / completion – 7 waiting to spud • To operate first well in 2012 with larger working interest – expected to lead to step change in net production and revenues generated • Plenty of newsflow expected – drilling results; ongoing leasing activity • Highly experienced management team with proven track record

29. Contact For further information please contact: Rita Whittington Chief Operating Officer Magnolia Petroleum PLC 18452 E 111th St Broken Arrow, OK 74011 T: +01 918 449 8750 F: +01 918 449 0180 www.magnoliapetroleum.com Frank Buhagiar/Lottie Brocklehurst St Brides Media & Finance Ltd Telephone +44 20 7236 1177

30. Appendix: Summary of Magnolia Reserves

31. Appendix: Extracts from Competent Person’s Report “A well diversified portfolio of producing properties that provide a stable long life cash flow to underpin the company. It has a small, but well positioned presence in two of the most active unconventional resource plays in North America.” “A state study evaluating oil reserves in the Three Forks Formation in western North Dakota concluded that there could be as much as 2 billion barrels of recoverable oil… based on more than 200 well measurement logs and 85 sets of testimony from technical experts.” “The development of the horizontal drilling technology and the multistage fracture stimulation… have transformed once known, but marginal plays into highly profitable plays.” “The North Dakota leasehold position has the potential… to double the expected recovery of hydrocarbons from the existing asset base providing significant upside to Magnolia.”