MAGELLAN PETROLEUM CORPORATION - ASX: MGN

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Description

Magellan Petroleum Corporation, through its wholly owned subsidiary, Magellan Petroleum Australia Limited and its majority controlling interest in Nautilus Poplar LLC, is engaged in the sale of oil and gas and the exploration for and development of oil and gas reserves worldwide. The Company engages in oil and gas exploration and production in Australia, the United Kingdom, and North America and has focus areas for conventional oil and gas as well as the developing methanol market in Asia.

Kotaneelee Field Focus Area

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

Amadeus Basin Focus Area

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.

Weald-Wessex Basins Focus Area

Magellan also has interests in 11 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. 7 more are currently being awarded. Varying interests are held in each permit as listed below. The licenses have been built up over a period of 5 years and drilling will commence in PEDL 126 in the fourth quarter of 2008. The well, Markwells Wood-1, is interpreted to address an extension of the Horndean oil field to the west. Four other wells, Horse Hill-1 (PEDL 137), Manor Farm-1 (PEDL 135), Prospect A (PEDL 099) and Prospect B (PEDL 125) are currently moving through planning approval with the various UK government entities. Due to the timeframes involved in receiving planning approvals these wells are likely to be drilled during 2009/10.

Mine For

oil, gas

Location of operation(s)

Canada, Northern Territory, Queensland, South Australia, UK

Australian Basins

Cooper, Maryborough

Address

Level 10, 145 Eagle St
BRISBANE, QLD, Australia

Phone

(61 7) 3224 1600

Email

Website

http://www.magpet.com

Last Updated

17/4/2008