It will target Oklahoma's Mississippi Lime formation and is expected to cost US$729,148.
Drilling is set to begin between November 10 and the year-end.
Rita Whittington, Magnolia's chief operating officer, said: "We are delighted to be on course to drill our first well as operator in Oklahoma before the year end.
"Along with the progress we continue to make in significantly increasing the number of wells in which we are participating in with established operators in proven oil rich formations, this is an exciting period in Magnolia's development as we look to build a significant oil and gas company."
The US-focused oil exploration company currently has interests in 84 wells targeting the Bakken and Three Forks Sanish in North Dakota and the Mississippi Lime and the Hunton and Woodford horizons in Oklahoma.
The plan is to progressively increase its interest in new wells.
Its highest working interest to date is in the Prucha well where it holds a 25% stake.
Today's announcement marks a step up to becoming the operator of a well.
And updated reserves report is expected to be commissioned in the first quarter of next year, which is expected to include average production rates.
It should also lead to the re-classification of its Three Forks Sanish reserves from 'possible' to 'proven undeveloped'.
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