Magellan: Sale of Cooper Basin Assets Pending

Magellan Petroleum announced the pending sale of all its assets located in the Cooper Basin, Australia, subject to closing of final sale agreements.

The Cooper Basin assets, including the Nockatunga, Kiana, and Aldinga oil fields and other miscellaneous exploration licenses will be sold (subject to final sale agreements) in a series of transactions totaling A$9.5million (US$8.8 million) net of fees and subject to final accounting adjustments. It is expected that the Company will record a gain in the current fiscal year as a result of these transactions. The offers accepted represent approximately A$34 (US$31.45) per barrel valuation on P1 developed reserves.

Magellan's President and Chief Executive Officer, William H. Hastings said "These assets are non-core to our strategies and are better suited to being consolidated into other portfolios. We are satisfied with the results of the bidding process and will apply the proceeds into ongoing near-term strategic efforts."