Magellan Drills Duster with Strumbo-1

Magellan Petroleum reports that the Strumbo-1 exploration well has reached a total depth of 728 meters RT in basement lithology and is currently preparing to run wireline logs. No significant hydrocarbon indications were encountered in the primary or secondary objectives, however, a review of the wireline logs will be undertaken prior to any decision to plug and abandon the well. The well was drilled using Diamond Offshore's semisubmersible, Ocean Epoch.

Interests in the Strumbo-1 well are Magellan Petroleum (WA) Pty Ltd (Operator) 35% and INPEX ALPHA, Ltd 65%.

The next well in which Magellan will participate is Gregory River-3 in ATP 613P in the onshore Maryborough Basin of Queensland, which is currently scheduled to spud in March. The well will twin the Gregory River-1 well, which was drilled by Shell in 1966 and encountered a 500 m gross gas column in low porosity sandstones. The Gregory River-3 well will be drilled under-balanced, using air/foam as the drilling fluid instead of conventional mud to minimise formation damage, thereby enhancing the prospects of achieving gas flows at commercial rates.