Magellan to Spud Yanerbie-1 in Cooper Basin South Australia

Magellan Petroleum Australia reports that the Yanerbie-1 exploration well in exploration permit PEL 110 is due to spud this week. The well is located some 150 km north of Moomba in South Australia.

Yanerbie-1 will target reservoirs in the Hutton Sandstone and the Triassic Tinchoo Formation in a robust structural closure approximately 20 kilometers north of the Keleary oil field where the Tinchoo and Basal Jurassic Poolowanna Formations are oil productive. The Poolowanna Formation at Yanerbie-1 is a secondary target.

Yanerbie-1 is being drilled by PEL 110 operator, Beach Petroleum, and will utilize the Century Rig 3. It is anticipated that the well will take approximately 14 days to drill to its planned total depth of 2,554 meters and evaluate the sequence.

Magellan advises that it has reached agreement with Enterprise Energy NL to farmout a 6.25% interest in the Yanerbie Prospect. As a result of this farmout, Magellan's equity in the Yanerbie Prospect will reduce to 31.25%. Magellan will retain a 37.5% interest in the remainder of PEL 110. However the terms of the farmout agreement with Enterprise also gives that company an option to earn a 6.25% in the entire tenement by committing to funding further exploration expenditure after Yanerbie-1.