Magellan Petroleum Announces Drilling Report - Rainbird 1 PEL 93 - Cooper Basin SA

HARTFORD, Conn., Aug. 20 /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.

The Rainbird 1 exploration well in PEL 93 reached a total depth of 2,154 meters after encountering a thicker section of Patchawarra Formation than prognosed. Wireline logs were run, which indicated that there were no commercial hydrocarbons in the Cretaceous or Jurassic-aged objective horizons.

Residual oil is interpreted in the Patchawarra Formation associated with the gas anomalies previously reported. The well is being plugged and abandoned.

Magellan participated in Rainbird 1 under a farmin agreement with Stuart Petroleum, Cooper Energy and Red Sky Energy. The Company would have earned a 24.5% participating interest in the Rainbird area in the event of a commercial discovery.

    Rainbird 1 Details:

    Petroleum Title:     PEL 93, South Australia
    Location:            approximately 8 km SSW of the Worrior oil field.
    Coordinates:         Latitude: 28 degrees 29' 09.45" South
                         Longitude: 139 degrees 45' 56.8" East (GDA 94).
    Drilling Rig:        Ensign Rig 20
    Total Depth:         2,154 meters RT
    Objectives:          Primary - the McKinlay Member of the Murta Formation
                         and the Birkhead Formation.
                         Secondary - the Patchawarra Formation and the Epsilon

    Operations:          Rainbird 1 spudded on August 7. After 9-5/8" casing
                         was run and set at 660 meters, the well was drilled
                         in 8-1/2" hole to a total depth of 2,154 meters.
                         Wireline logs were run. The well did not encounter
                         commercial hydrocarbons in the objectives and is
                         being plugged and abandoned.
    Progress for Period: 150 meters.

    Participants in Rainbird 1 are:

      Magellan Petroleum Corporation                      24.5%
      Stuart Petroleum Limited (ASX: STU)(Operator)       36.0%
      Red Sky Energy Limited (ASX: ROG)                   24.5%
      Cooper Energy Limited (ASX: COE)                    15.0%

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