Australian FIRB OKs Magellan's Acquisition

Magellan Petroleum announced that Australia's Foreign Investment Review Board (FIRB) has indicated they have "no objection" to Magellan's acquisition of Santos' 40% interest in the Evans Shoal natural gas field (NT/P48). The Board examines proposals by foreign interests to undertake direct investment in Australia and makes recommendations to the Government on whether those proposals are suitable for approval under the Government's policy.

Closing of the purchase, which is subject to regulatory and other approvals including this FIRB approval, is targeted for completion in late 2010.

On March 25, 2010, the Company announced the execution of an agreement by its wholly-owned subsidiary, Magellan Petroleum Australia (MPAL), with Santos to purchase Santos' 40% interest in the Evans Shoal natural gas field (NT/P48), located in the Bonaparte Basin offshore Northern Australia. The Evans Shoal field is very large with estimated contingent natural gas resource of between 6.5 and 8 TCF (trillion cubic feet), including CO2 content and gas condensate resource totaling more than 30 million barrels. Value from this resource is dependent upon completion, submission and approval of a development plan and upon further drilling which we believe will support the field's potential. To further advance the development of the field, the Company has completed a presentation to its future joint venture partners which outlined a work plan that would begin to quantify resources in place and lead to the development of the field for Asian markets.

Magellan plans to advance its work plan, as endorsed by the joint venture partners, by obtaining additional funding after completing evaluation of the various funding options available to the Company. The Company expects to shortly conclude a definitive purchase and sale agreement for the sale of its common stock to its strategic investor, Young Energy Prize, S.A. (YEP), as previously announced.

Periodic updates will be issued on progress in advancing the development of the Evans Shoal field.