Magellan Reports Update on Rainbird 1

Magellan Petroleum reports that the Rainbird 1 exploration well in PEL 93 was at a depth of 2004 meters in the Patchawarra Formation and drilling ahead to basement. Gas anomalies were noted while drilling in the Patchawarra Formation, and these will be further evaluated by wireline logs and drill stem testing (if required).

Magellan is participating in Rainbird 1 under a farm-in agreement with Stuart Petroleum, Cooper Energy and Red Sky Energy. The Company will earn a 24.5% participating interest in any commercial discovery and subsequent Petroleum Production License.

Rainbird 1 Details:

Petroleum Title:	PEL 93, South Australia
Location:		approximately 8 km SSW of the Worrior oil field.
Coordinates:		Latitude: 28° 29' 09.45" South
Longitude:		139° 45' 56.8" East (GDA 94).
Drilling Rig:		Ensign Rig 20
Prognosed Total Depth:  2019 meters RT
Objectives:		Primary – the McKinlay Member of the Murta Formation and the Birkhead Formation. Secondary – the Patchawarra Formation and the Epsilon Formation.
Operations:		Rainbird 1 spudded on 7 August and was drilled in 12¼" hole to a depth of 660 meters RT. 9⅝" casing was run and set. The well was then drilled in 8½" hole and at 06:00 hrs (CST) on 16 August was at a depth of 2004 meters and drilling ahead to basement. 
Progress for Period:	2004 meters.

Participants in Rainbird 1 are:

Magellan Petroleum Corporation 			24.5% *
Stuart Petroleum Limited (ASX:STU)(Operator)	36.0%
Red Sky Energy Limited (ASX:ROG)		24.5% *
Cooper Energy Limited (ASX:COE)			15.0%
(* subject to a commercial discovery)