Magellan Petroleum Announces Drilling Report - Patron 1
PEL 93 - Cooper Basin SA
HARTFORD, Conn., Sept. 27 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (NCM: MPET; ASX: MGN) ("Magellan") announced that its 100% owned subsidiary, Magellan Petroleum Australia Limited ("MPAL") advises the following drilling report.
Patron 1, an exploration well, the second well drilled under the PEL 93 farmin agreement, spudded in PEL 93 in the Cooper Basin of South Australia on September 20.
Patron 1 is located approximately 14.5 kilometers south of the Worrior oil field and 3.5 kilometers northwest of the Padulla oil field. The Patron prospect is located on the northwest flank of the Dirkala Ridge, adjacent to the Padulla oil field, on a smaller parallel faulted ridge.
The primary oil reservoir objectives in Patron 1 are the McKinlay Member of the Murta Formation and the Birkhead Formation, with secondary gas objectives in the Epsilon Formation and the Patchawarra Formation. The Patron 1 well, which is being operated by Stuart Petroleum, will take approximately 12 days to drill and evaluate, and is programmed to have a total depth of approximately 1,800 meters. RT. Magellan is funding 49% of the Patron 1 drilling costs.
MPAL entered into a farmin agreement with Stuart Petroleum, Cooper Energy and Red Sky Energy in July 2007, under which MPAL has the option to participate in exploration drilling in part of the PEL 93 area during the current term of the PEL 93 license. The Company will earn a 24.5% participating interest in any commercial discovery made by the drilling and any subsequent Petroleum Production License by funding 49% of the drilling costs.
Patron 1 Details: Petroleum Title: PEL 93, South Australia Location: approximately 14.5 km S of the Worrior oil field and 3.5 km northwest of the Padulla oil field Coordinates: Latitude: 28 degrees 34' 04.8" South Longitude: 139 degrees 49' 18.4" East (GDA 94). Drilling Rig: Century Rig 3 Proposed Total Depth: 1,800 meters RT Objectives: Primary oil - the McKinlay Member of the Murta Formation and the Birkhead Formation. Secondary gas - the Patchawarra Formation and the Epsilon Formation. Operations: Patron 1 spudded on August 20 and was drilled in 121/4" hole to a depth of 672 meters RT. 95/8" casing was run and set at 670 meters. The well was then drilled in 81/2" hole and at 06:00 hrs (CST) on September 26 was at a depth of 1,289 meters RT; pulling out of hole to conduct a drill stem test over an oil show in the Murta Formation. Progress for Period: 1,289 meters. Participants in Patron 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% (* subject to a commercial discovery)
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. For further information, please contact Daniel Samela at (860) 293-2006.
SOURCE Magellan Petroleum Corporation
Released September 27, 2007