Magellan Picks Up Exploration Permit Offshore Australia

Magellan has accepted an offer from the Commonwealth - Northern Territory Offshore Petroleum Joint Authority for the grant of an exploration permit for petroleum over Area NT09-1, offshore Northern Territory. Area NT09-1 was offered for competitive bid under the 2009 Release of Offshore Petroleum Exploration Areas. Bidding closed on December 3, 2009.

Release Area NT09-1 is located in the Malita Graben of the Bonaparte Basin 220 kilometers (137 miles) northwest of Darwin, and is within the area where Magellan is conducting feasibility work in partnership with a large methanol producer.

Water depths range from 10 m to 170 m. Area NT09-1 is in an area of proven gas-prone Early-Middle Jurassic (Plover Formation) source and reservoir rock and adjacent to fault-bounded gas accumulations. The NT09-1 permit covers 6,305 square kilometers (2,460 square miles).

Magellan's President and Chief Executive Officer, William H. Hastings said, "The Government's grant of an exploration permit over Area NT09-1 is another positive step for us toward our stated gas development strategy. We believe an important structural closure exists within this License area and are anxious to initiate a technical work program to study the area's potential. Commercially, any gas that can be found in NT09-1 is complementary to the development plans of our neighbours at Evans Shoal and Caldita."