Magellan Begins 7-Well Drilling Program Down Under

Magellan Petroleum and its partners have mobilized the South Pacific Drilling Rig 1 to drill the Wawiri-1 exploration well in PEP 38753 in the Taranaki Basin in New Zealand. Wawiri-1 is targeting an oil play in the Mount Messenger Formation and will be drilled to a planned total depth of 1400 meters measured depth. The well is expected to spud on September 7th.
BR>Partners in PEP 38753 are Indo-Pacific as operator with 23.6%, Magellan Petroleum with 25%, Tap Oil with 25% and Krystal Corporation with the remaining 26.4%.

The spudding of Wawiri-1 marks the commencement of a seven well drilling program for Magellan in both New Zealand and Australia. Wawiri-1 will be immediately followed by a second Taranaki Basin well, Bluff-1. The Bluff-1 well will be drilled in exploration permit PEP 38746 and will also target oil in the Mount Messenger Formation.

In Australia, Magellan will participate in five wells in the South Australian and Queensland portions of the Cooper-Eromanga Basins. In South Australia, the Semaphore-1 (PEL 110 - Magellan 37.5%), Waitpinga-1 (PEL 94 - Magellan 50%) and Seacliff-1 (PEL 95 - Magellan 50%) wells will be drilled by the joint venture Operator, Beach Petroleum, in October and November. These wells are targeting oil plays in the Jurassic, Triassic and Permian sequences.

In the southwest Queensland sector of the Eromanga Basin, Magellan will participate in two wells in the recently acquired permits, PL 51 and ATP 267 P (Magellan - 40.936%) in the Nockatunga area. Magellan's participation is subject to the Queensland Government Minister's approval of the purchase of the Nockatunga interests from Voyager Energy, which was announced by Magellan on 14 July 2003. The Operator, Santos, is scheduled to drill the Thungo-8 infill development well to access un-drained oil reserves in the Thungo oil field and has proposed the Callisto-1 exploration well in ATP 267 P to target the Hutton Sandstone and Permian sections.