Magellan Farms Out Exploration Permits in Cooper Basin

Magellan Petroleum has reached a heads of agreement with Black Rock Oil & Gas to farmout a 15% interest in Petroleum Exploration License No. 94 and a 10% interest in Petroleum Exploration License No. 110. Both permits are located in the Cooper Basin of South Australia. The farmout is subject to Black Rock listing on the Australian Stock Exchange, as well as the necessary Government and joint venture consents.

Black Rock has advised that it hopes to list on the Australian Stock Exchange by mid-year.

Black Rock will fund part of the cost of the upcoming 85 kilometer Malleus 2D seismic survey in PEL 94 and part of the cost of the next well drilled in each of the two permits to earn the interests. Magellan currently holds a 50% interest in PEL 94 and a 37.5% interest in PEL 110, and these interests will reduce accordingly.

The partners will be drilling the Murta and Cadnaowie Formations which are producing in the adjoining Aldinga discovery by Magellan/Beach in the adjacent PEL 95 permit and, Santos Wanchoocha Field to the north.