Magellan Announces Plans for Two UK Wells in 2014
June 03 2014 - 6:05AM
Marketwired
Magellan Announces Plans for Two UK Wells in 2014
DENVER, CO--(Marketwired -
June 03, 2014) - Magellan Petroleum Corporation (NASDAQ: MPET) ("Magellan" or the "Company")
today announced plans for two exploration wells to be drilled
during 2014 within the Company's license areas in the UK. The
Company's partner Angus Energy ("Angus") has announced plans to
spud in July 2014 an exploration well on the Horse Hill prospect
located within the Petroleum Exploration and Development License
("PEDL") 137 area. Angus will carry 100% of Magellan's costs for
this well, after which the Company will retain a 35% working
interest in the well and the PEDL. Later in 2014, the Company
plans to fund its 50% share of a well to be drilled by its partner
Celtique Energie ("Celtique") at Broadford Bridge, located within
the license area of PEDL 234.
Both wells will be drilled vertically and completed without the
use of hydraulic fracturing and ultimately target conventional
Triassic gas plays. However, during drilling, Magellan will
have the opportunity to core and log various shale and tight
formations in the Cretaceous and Jurassic sections of the Weald
Basin.
The Weald Basin, which is located southwest of London, underlays
substantially all of Magellan's 347,000 gross (162,000 net) acres
of exploration and development licenses in the UK. Three of
these licenses, PEDLs 231, 234, and 243, which the Company co-owns
equally with Celtique, cover the depocenter of the basin. A
map delineating the Company's acreage position can be found at
www.magellanpetroleum.com/operations/united-kingdom. On May
23, 2014, the British Geological Survey ("BGS"), in association
with the UK Department of Energy and Climate Change ("DECC"),
publicly released a report (the "BGS Report") on the hydrocarbon
resource potential of the Jurassic shale formations in the Weald
Basin. The BGS Report estimated that a combined total of
between 2.2 billion and 8.6 billion barrels of oil are in place in
five shale formations within the basin, with a median estimated
quantity of oil in place of 4.4 billion barrels. The BGS
Report did not study or assess the hydrocarbon resource potential
of tight formations.
J. Thomas Wilson, President and CEO of Magellan, commented, "The
median estimate of 4.4 billion barrels of liquid resource in the
Weald is, in our opinion, a very encouraging target. Magellan
believes that this figure may be supplemented with additional
resources contained in tight formations present between the thick
shale packages of the Jurassic and Cretaceous sections. The
two wells planned in 2014, in addition to providing us exposure to
attractive conventional plays, will provide invaluable data for
validating the BGS's findings on the shale formations and our
expectations for the tight formations."
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
Statements in this press release, including forecasts or
projections that 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.
The words "anticipate", "assume", "believe", "budget", "estimate",
"evaluate", "expect", "forecast", "intend", "should", "initial",
"plan", "project", and similar expressions are intended to identify
forward-looking statements. These statements about the Company may
relate to its businesses and prospects, planned capital projects
and expenditures, increases or decreases in oil and gas production
and reserves, estimates regarding resource potential, revenues,
expenses and 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 following: whether the BGS Report accurately estimates the
hydrocarbon resource potential of the Weald Basin; the potential of
hybrid plays, tight rock formations, and conventional Triassic
plays in the Weald Basin; the value of our UK acreage position; the
success of coring and logging programs; the uncertain nature of oil
and gas prices in the United States; uncertainties inherent in
projecting future rates of production from drilling activities; the
uncertainty of drilling and completion conditions and results; the
availability and cost of drilling, completion, and operating
equipment and services; and other matters discussed in the "Risk
Factors" section of The Company's most recent Annual Report on Form
10K and most recent Quarterly Report on Form 10Q. Any
forward-looking information provided in this release should be
considered with these factors in mind. The Company assumes no
obligation to update any forward-looking statements contained in
this report, whether as a result of new information, future events,
or otherwise.
ABOUT MAGELLAN Magellan Petroleum Corporation is an independent
oil and gas exploration and production company focused on the
development of a CO2-enhanced oil recovery ("CO2-EOR") program at
Poplar Dome in eastern Montana and the exploration of
unconventional hydrocarbon resources in the Weald Basin, onshore
UK. Magellan also owns an exploration block, NT/P82, in the
Bonaparte Basin, offshore Northern Territory, which the Company
currently plans to farm-out; and an 11% ownership stake in Central
Petroleum Limited (ASX: CTP), a
Brisbane based junior exploration and production company that
operates one of the largest holdings of prospective onshore acreage
in Australia. Magellan is headquartered in Denver, Colorado. The
Company's mission is to enhance shareholder value by maximizing the
full potential of existing assets. Magellan routinely posts
important information about the Company on its website at
www.magellanpetroleum.com.
For further information, please contact: Matthew Ciardiello
Manager, Investor Relations 720.484.2404
IR@magellanpetroleum.com
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