Magellan Petroleum announced its production and exploration activities for the quarter ended March 31, 2009.
PRODUCTION AND DEVELOPMENT ACTIVITIES
Palm Valley Gas Field (PL 3) - Amadeus Basin NT (52.023% Interest)
The Palm Valley gas field which is operated by Magellan produced an average of approximately 7.3 million cubic feet per day (MMcf/D) of natural gas for sale during the quarter. The Palm Valley Joint Venture's objective is to maximise gas production from the existing facilities while maintaining a safe and efficient operation, conducted in accordance with good oil field practice.
Mereenie Oil and Gas Field (PL 4 & 5) - Amadeus Basin NT (35% Interest)
The Mereenie oil and gas field which is operated by Santos Ltd produced an average of approximately 36 MMcf/D of natural gas and 712 barrels of oil and condensate per day for sale during the March quarter. No major projects were undertaken on the Mereenie field during the quarter.
Nockatunga Oil Fields (PLs 33, 50, 51, 244, 245 & ATP 276P) - Cooper Basin Qld (40.936% Interest)
The Nockatunga oil fields which are operated by Santos Ltd produced an average of approximately 501 barrels of oil per day (BOPD) for sale during the March quarter.
Advice was received that Petroleum Leases 244 and 245 were granted with effect from 1 December 2008 over the Currambar oil field and Noccundra/Maxwell South area. The Currambar field, which was discovered in ATP 267P in 2007, has been producing petroleum under a special order from the Minister.
The Maxwell-Kaos 3D seismic survey was conducted during the period. The 254 square kilometer survey covered PL 50 & PL 245 over the Maxwell field and Noccundra lease as well as a significant portion of the ATP-267-P exploration block. Processing of the data acquired is in progress.
Kiana Oil Field (PPL 212) - Cooper Basin SA (30% Interest)
Production from the Kiana-1 well averaged 19 BOPD during the quarter. The well is currently producing from only the upper Patchawarra Formation zone.
Aldinga Oil Field (PPL 210) - Cooper Basin SA (50% Interest)
Aldinga-1 well was shut-in during the period, waiting on repairs. There are no current plans to develop the field further.
Kotaneelee Gas Field, YT (2.67% interest)
Magellan has a 2.67% carried interest in the Kotaneelee gas field in the Yukon Territory of Canada. Devon Canada Corporation is operator of this partially developed field which is connected to a major pipeline system.
Exploration evaluation of ATP 267P (Magellan 40.936% - refer above), PEL 94 (Magellan 35% interest), PEL 95 (Magellan 50% interest), PEL 107 (Magellan 20% interest) and PEL 110 (Magellan 60% interest) is ongoing. Beach Petroleum withdrew from the PEL 110 joint venture and license, and as a consequence Magellan's interest in the area increased from 37.5% to 60%.
UNITED KINGDOM EXPLORATION
In the Weald Basin, Magellan (40% interest) will participate in the Markwells Wood-1 exploration well in PEDL 126 in 2009. Northern Petroleum, operator of the PEDL 126 Joint Venture, has commenced site construction for the well. The Markwells Wood-1 well will target a prospect that is interpreted to be an eastward extension of the currently producing Horndean oil field.
Analysis of data from, and between, the Horndean and Singleton oil fields which lie some 15 km apart indicates they are in essence the same interconnected oil accumulation. Markwells Wood is the first of two locations within the license where structures have been mapped above the interpreted common oil-water contact.
Northern Petroleum, operator of the PEDL 155 Joint Venture (Magellan 40%), has also received planning approval from the Hampshire County Council to drill the Havant-1 well, which will target an oil prospect in the Great Oolite Formation. The Horndean oil field to the north of the Havant prospect produces from the Great Oolite Formation.
Magellan holds interests (ranging from 22.5% to 50%) in seven other exploration licences in the Weald-Wessex Basin (PEDLs 098, 125, 152, 153, 154, 155 and 240), which are also operated by Northern Petroleum. Elsewhere in the Weald Basin, PEDLs 135, 136, 137, 242 and 246 are held and operated by Magellan with a 100% interest. Well sites have been selected and applications for local council planning consents for the drilling of two prospects, one in PEDL 135 and one in PEDL 137 are being progressed. Magellan also operates recently granted PEDLs 231, 232, 234 and 243 with a 50% interest.
Expenditures incurred on exploration, appraisal and development activities during the March 2009 quarter, totalled $1,592,000. All figures are unaudited.
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