Magellan Petroleum Records Third Quarter Profit

Magellan Petroleum Corporation (Nasdaq: MPET) said it had a consolidated net profit of $142,000 - - one cent a share, basic and diluted -- on gross revenues of $5.1 million in its fiscal third quarter ended Mar. 31, as compared to a profit of $230,000 (one cent a share) on revenues of $4.1 million in last year's third quarter.

For the nine-month period ended Mar. 31, the company posted net income of $703,000 (three cents a share) on $15.7 million in revenues compared to a loss of $526,000 (two cents a share) on revenues of $11.1 million in the prior period last year, the Company said.

Magellan, which reports on a consolidated basis with its 55%-held Australian subsidiary, Magellan Petroleum Australia Limited, said last year's nine-month results included a cumulative effect charge of $738,000 associated with the adoption of the new accounting standard for Asset Retirement Obligations. There was a net profit of $212,000 before the cumulative effect charge, or one cent a share for the 2003 nine-month period.

Mr. James R. Joyce, the Company's President stated that Palm Valley No. 11 development well, which is located in the Amadeus Basin in the Northern Territory of Australia, is planned to spud on May 17, 2004.

The Company also announced that effective March 1, 2004, the Company's board of directors elected Mr. Daniel Samela as Treasurer of the Company. Mr. Samela, 56, a Certified Public Accountant has held various senior level financial positions during his career. Most recently he was Chief Financial Officer of Evercel, Inc., a publicly held energy related company. Prior to that position, he was Controller and Chief Accounting Officer of Trigen Energy Corporation, a publicly held thermal and electric cogeneration company. Effective July 1, 2004, Mr. Samela will assume the roles of Chief Financial Officer and Acting President and Chief Executive Officer of the Company.