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Magnolia Petroleum One2One Investor Presentation - Proactive ...

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Extracts from Competent Person’s Report<br />

October 2011<br />

“A well diversified portfolio of producing properties that provide a stable long<br />

life cash flow to underpin the company. It has a small, but well positioned<br />

presence in two of the most active unconventional resource plays in North<br />

America.”<br />

“A state study evaluating oil reserves in the Three Forks Formation in western<br />

North Dakota concluded that there could be as much as 2 billion barrels of<br />

recoverable oil… based on more than 200 well measurement logs and 85 sets<br />

of testimony from technical experts.”<br />

“The development of the horizontal drilling technology and the multistage<br />

fracture stimulation… have transformed once known, but marginal plays into<br />

highly profitable plays.”<br />

“The North Dakota leasehold position has the potential… to double the<br />

expected recovery of hydrocarbons from the existing asset base providing<br />

significant upside to <strong>Magnolia</strong>.”<br />

36<br />

| MAGNOLIA PETROLEUM PLC | September 2012

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