MAGELLAN PETROLEUM CORPORATION - ASX: MGN

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Description

Magellan Petroleum Corporation (the “Company” or “MPC”) is engaged in the sale of oil and gas and the exploration for and development of oil and gas reserves. The Company’s principal assets are a 100% equity interest in its subsidiary, Magellan Petroleum Australia Limited (MPAL) and 83.5% controlling interest in Nautilus Poplar, LLC (Nautilus).

MPAL owns interests in various oil and gas properties in Australia and the United Kingdom. MPAL’s primary Australian assets are Mereenie and Palm Valley fields located in the Amadeus Basin in the Northern Territory of Australia. MPAL has a 52% interest in, and is the operator of, the Palm Valley gas field, and has a 35% interest in the Mereenie oil and gas field.

Magellan Petroleum Corporation has an 83.5% controlling interest in Nautilus, based in Denver, Colorado. Nautilus owns and operates oil development assets in Roosevelt County, Montana known as the East Poplar Unit and the Northwest Poplar field.

In Canada, the Company has a direct 2.67% carried interest in the Kotaneelee gas field in the Yukon Territory of Canada.

Amadeus Basin, Northern Territory

Magellan operates the Palm Valley gas field in the Amadeus Basin which in calendar 2007 supplied 3.7 PJ (3.2 Bcf) of natural gas to markets in the Northern Territory, principally to Darwin and Alice Springs. Gas sales to Alice Springs commenced in 1983 and to Darwin in 1986. Proved ultimate recoverable gas reserves at Palm Valley are estimated at 226 Bcf and cumulative production to 31 December 2007 totalled 148.5 Bcf. Magellan holds a 52.023 percent working interest in the field and its share of remaining proved and probable recoverable gas reserves at 31 December 2007 was 42 Bcf. During the calendar 2007 the field produced sales gas at the rate of approximately 10 TJ (9 MMcf) per day. The Company holds a 35 percent working interest in the Mereenie oil and gas field, also in the Amadeus Basin, which is operated by Santos Ltd. The Mereenie field commenced crude oil production in 1984 and gas sales in 1987. A total of 62 wells have been drilled on the field and during calendar 2007 oil and condensate production was approximately 0.336 MMSTB and gas sales were approximately 17 PJ (15 Bcf). The field produced oil and condensate at the rate of approximately 920 BOPD and sales gas at the rate of around 47 TJ (41 MMcf) per day during calendar 2007. Magellan's share of proved and probable remaining recoverable reserves at 31 December 2007 was 1.1 MMSTB of oil and condensate and 45 Bcf of gas. A retention lease is held over the Dingo gas discovery. The development of the 13 Bcf gas resource is currently believed to be uneconomic and is therefore classified as contingent resources.

Bonaparte Basin - Evans Shoal - NT/P48 & NT09-1 Exploration Permit, Northern Territory

Evans Shoal is a large, yet to be developed natural gas field with previously announced, estimated contingent gas resource in excess of 6.6 TCF (trillion cubic feet), including CO2 content. This resource is dependent upon completion, submission, and approval of a development plan and upon further drilling which Magellan believes will support the field?s potential. The field has had a complete 3D seismic program covering 2,150 square kilometers or 840 square miles within the permit. Seismic analysis has confirmed the field?s structural closure to cover in excess of 320 square kilometers or 125 square miles. As point of reference here, a typical Gulf of Mexico license block is 23 square kilometers or 9 square miles.

Release Area NT09-1 is located in the Malita Graben of the Bonaparte Basin 220 kilometers (137 miles) northwest of Darwin, and is within the area where Magellan is conducting feasibility work in partnership with a large methanol producer.

Water depths range from 10 m to 170 m. Area NT09-1 is in an area of proven gas-prone Early-Middle Jurassic (Plover Formation) source and reservoir rock and adjacent to fault-bounded gas accumulations. The NT09-1 permit covers 6,305 square kilometres (2,460 square miles).

Weald-Wessex Basins, England

Magellan has interests in 17 exploration and development licenses in the onshore portion of the Weald and Wessex Basins, in southern England in the United Kingdom, where it is exploring for hydrocarbons. Varying interests are held in each permit as listed below. The licenses have been built up over a period of 5 years and drilling commenced in PEDL 126 in the fourth quarter of 2010. The well, Markwells Wood-1, is interpreted to address an extension of the Horndean oil field to the west. Drilling of a other wells are being planned and government drill approvals sought.

Kotaneelee Field Focus Area, Canada

MPC has a direct 2.67% carried interest in the Kotaneelee gas field in the Yukon Territory of Canada.

Poplar Field - East Poplar and NorthWest Poplar field

Mine For

oil, gas

Location of operation(s)

Northern Territory, England, Canada, USA

Australian Basins

Amadeus, Bonaparte

Address

Level 10, 145 Eagle St
BRISBANE, QLD, Australia

Phone

(61 7) 3224 1600

Email

Website

http://www.magellanpetroleum.com

Last Updated

14/1/2011