Magellan Petroleum has completed a consolidation of interests at the East Poplar Unit and North West Poplar fields in Roosevelt County, Montana. On March 9, 2010, the Company entered into a Purchase and Sale Agreement with Hunter Energy LLC under which the Company assumed Hunter's 25.05% average working interests in those Montana fields. Magellan, itself and through its subsidiaries, now controls a 93.80% average working interests there.
As previously disclosed, on October 15, 2009, the Company acquired an approximate 83.5% controlling member interest in Nautilus Poplar, which holds a 68.75% undivided working interest in the East Poplar Unit and varied interests ranging from 60-75% in the Northwest Poplar field.
Nautilus will continue to serve as the operator of the Poplar Fields.
Magellan's President and Chief Executive Officer, William H. Hastings said, "The 93.80% working share gives Magellan a considerable controlling interest in this 23,000 acre structure. Work continues to consolidate the smaller remaining interests. We believe there remains redevelopment potential in this area using primary infill and enhanced recovery techniques. The Poplar Field transactions are consistent with our previously stated plans and add value. The Hunter purchase will also boost our current efforts to introduce new development partners and philosophies into area and field operations and to extend the scope of our investments in Montana and surrounding states."
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