Magellan Petroleum Announces Weekly Drilling Report Muthero-5 & Telowie-1

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HARTFORD, Conn., Feb. 28 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET; ASX: MGN) ("Magellan") announced that its 100% owned subsidiary, Magellan Petroleum Australia Limited ("MPAL") advises the following drilling report.

Nockatunga Fields - Queensland

The Muthero-5 appraisal well in PL 51 southwest Queensland spudded on February 23, 2007 and drilled to a total depth of 1446 meters. Oil shows were recorded in the Murta Member and the Birkhead Formation. The operation at 06:00 hr was pulling out of the hole to run wireline logs.

Cooper Basin - South Australia

The Telowie-1 exploration well spudded in PEL 94 in South Australia on February 23. Surface casing was set at 583 meters. At 08:00 hr (EST) on February 28 the well was at a depth of 1321 meters and drilling ahead to its programmed total depth of 1367 meters. Minor oil shows were recorded in the Murta Member.

The Telowie-1 exploration well is located on the southern flank of the Cooper Basin, and is designed to test a simple anticlinal structure located on the north-eastern end of the Milpera Horst. The well is approximately 4.8 kilometers northeast of Maslins-1 which recovered oil from the Murta Member. Telowie-1 is programmed to a total depth of 1367 meters RT. The primary objective is the Namur Sandstone and the McKinlay Member with secondary potential in the Murta Member. The Operator assesses the mean potential resource in the Namur Sandstone at 2.1 MMSTB of oil.

    Muthero-5 Details:

    Petroleum Title:        PL 51, Queensland
    Location:               Approximately 260 meters South of Muthero 3
    Coordinates:            Latitude: 27 degrees 42' 52.80" South
                            Longitude: 142 degrees 36' 47.33" East (GDA 94)
    JV Operator:            Santos Limited
    Drilling Rig:           PDI 721
    Total Depth:            1446 meters RT
    Objectives:             Primary - Birkhead Formation
                            Secondary - Murta Member
    Operations for period:  Muthero-5 spudded on February 23,  2007 and was
                            drilled in 10-5/8" hole to 220 meters. 8-
                            5/8" surface casing was set at 217 m. The well was
                            then drilled in 7-7/8" hole to a total depth of
                            1446m. POOH to run wireline logs.
    Progress for Period:    1446 meters.

    Participants in Muthero-5 are:

    Magellan Petroleum Corporation      38.994%
    Santos Limited Group (Operator)     61.006%

    Telowie-1 Details:

    Petroleum Title:        PEL 94 South Australia
    Location:               Approximately 4.8 km northeast of Maslins-1
    Coordinates:            Latitude: 28 degrees 51' 47.31" South
                            Longitude: 140 degrees 03' 36.76" East (GDA 94)
    JV Operator:            Beach Petroleum Ltd
    Drilling Rig:           Century Rig 3
    Proposed Total Depth:   1367 meters RT
    Objectives:             Primary - Namur Sandstone / McKinlay Member
                            Secondary - Murta member
    Operations for period:  The well spudded on February 23, 2007 and was
                            drilled in 12-1/4" hole to the surface casing
                            depth of 586 m. The well was then drilled in 8-
                            1/2" hole and at 08:00 hr (EST) on February 28,
                            2007 was at a depth of 1,321 meters and drilling
                            ahead.
    Progress for Period:    1,321 meters.

    Participants in Telowie-1 are:

    Magellan Petroleum Corporation      35%
    Beach Petroleum Ltd (Operator)      50%
    Victoria Petroleum NL               15%

    Forward Looking Statements

Statements in this release which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. These statements about Magellan and MPAL may relate to their businesses and prospects, revenues, expenses, operating cash flows, and other matters that involve a number of uncertainties that may cause actual results to differ materially from expectations. Among these risks and uncertainties are the extent of the recoverable reserves at those properties and the risk that any wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. Any forward-looking information provided in this release should be considered with these factors in mind. Magellan assumes no obligation to update any forward- looking statements contained in this release, whether as a result of new information, future events or otherwise.

SOURCE Magellan Petroleum Corporation

Released February 28, 2007