Magellan Petroleum Corporation Announces First Quarter Earnings

HARTFORD, Conn., Nov. 14 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported consolidated net income of $399,000 ($.01 per share) on gross revenues of $9.3 million in its fiscal first quarter ended September 30, 2007, as compared to net income of $1,030,000 ($.02 per share) on revenues of $6.8 million in last year's first quarter.

Magellan's president, Daniel Samela said, "Results were mixed for the quarter, but we are pleased with the increase in the volume of oil sales. With all ten new wells in the Nockatunga project tied in, sales volume increased 337% to almost 35,000 barrels this quarter from this field." Samela continued by saying, "in October a two- well drilling program was undertaken at Nockatunga, resulting in an additional well, Maxwell 5, cased and suspended as a future oil producer."

Exploration and dry hole costs for the 2007 quarter increased 366% over the 2006 quarter, due mostly to increased drilling costs of $1.5 million related to PEL 93 in the Cooper Basin, Australia.

The Company had $31.9 million of cash and marketable securities at September 30, 2007 and no long-term debt.

Statements in this press release which are not historical in nature are intended to be, and are hereby identified as, forward looking statements for purposes of the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements. Among these risks and uncertainties are the ultimate outcome of the MPAL tax audit by the Australian Taxation Office, pricing and production levels from the properties in which the Company has interests, and the extent of the recoverable reserves at those properties. In addition, the Company has a large number of exploration permits and faces the risk that any wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. The Company undertakes no obligation to update or revise forward- looking statements, whether as a result of new information, future events, or otherwise

Comparative, consolidated results for the three month periods are shown in the following consolidated statements of income:



                                                       THREE MONTHS ENDED
                                                          SEPTEMBER 30,
                                                       2007            2006
      Oil sales                                   $  4,732,820  $  2,925,514
      Gas sales                                      3,989,184     3,403,398
      Other production related revenues                599,929       494,252
      Total revenues                                 9,321,933    6,8 23,164
      Production costs                               2,098,026     1,791,139
      Exploratory and dry hole costs                 2,013,474       431,983
      Salaries and employee benefits                   444,509       315,130
      Depletion, depreciation and amortization       3,161,256     2,001,952
      Auditing, accounting and legal services          237,051       175,805
      Accretion expense                                170,208       131,767
      Shareholder communications                        47,066        76,547
      Gain on sale of field equipment                   (9,653)            -
      Other administrative expenses                    869,913       522,612
      Total costs and expenses                       9,031,850     5,446,935
    Operating income                                   290,083     1,376,229
      Interest income                                  489,217       345,121
    Income before income taxes                         779,300     1,721,350
    Income tax provision                              (380,770)     (691,213)
    Net income                                        $398,530    $1,030,137
    Average number of shares:
       Basic                                        41,500,138    41,500,138
       Diluted                                      41,500,138    41,500,138
    Net income per share (basic and diluted)             $0.01         $0.02

SOURCE Magellan Petroleum Corporation