Magellan Drills Dry Hole in Australia

The Palm Valley-11 ST development well reached a total depth of 2,214 meters without encountering a commercial gas flow from reservoir fractures. An open-hole flow test at total depth resulted in a weak air blow which died after 45 minutes with no gas to surface. The operation at 06:00 hours (Central Australian Time) today was building mud volume and laying out the bottom-hole assembly prior to wire-line logging, which will be carried out later today. Once wire-line logs have been acquired, the well will be plugged and abandoned.

The Palm Valley-11 ST well is located on the Palm Valley gas field approximately 120 kilometers west-southwest of Alice Springs, Northern Territory, in the north-central part of the Amadeus Basin.

Participants in the Palm Valley-11 ST well are Magellan Petroleum (N.T.) Pty Ltd as operator with 52.023% and Santos with the remaining 47.977%.