Magellan Petroleum Announces Contract for 3-D and 2-D Seismic
Survey over Australian Offshore Block
DENVER, Nov. 1, 2012 /PRNewswire/ -- Magellan
Petroleum Corporation (NASDAQ: MPET) today announced that it has
executed a contract with Seabird Exploration FZ-LLC for the seismic
recording vessel Voyager Explorer to undertake a 75 square mile 3-D
and an 84 square mile 2-D seismic survey within Magellan's NT/P82
Exploration Permit ("NT/P82"), offshore Australia. The
seismic survey is expected to commence during the second week of
December 2012 and to take
approximately two weeks to complete. Magellan plans to
process and analyze the seismic data over the following three
months to assess the presence and recoverability of hydrocarbons in
NT/P82.
NT/P82 is an exploration license located in the Bonaparte Basin,
160 miles northwest of Darwin, Northern Territory, Australia, in which Magellan owns a 100%
interest. The water depths over the license are relatively
shallow, ranging from 55 to 400 feet. Under the terms of the
license and pending the results of the seismic survey, Magellan is
required to drill a well by May 2015.
The Company expects to incur a total of approximately
$4.5 million on shooting, processing,
and analyzing the seismic survey data.
"This is an important milestone in Magellan's strategy to prove
up the value of its assets. Acquiring 3-D seismic for this
block will give us a much better understanding of the nature and
size of the potential hydrocarbon resources and will allow us to
seek value from this asset. Magellan expects to provide
further information related to the results of this seismic survey
and its plans for the future development of this license by the end
of April 2013," commented Tom
Wilson, President and CEO of Magellan.
CAUTIONARY INFORMATION ABOUT FORWARD LOOKING
STATEMENTS
Statements in this release 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. Statements as to
our strategy, plans or future financial or operating performance,
and other statements that express management's expectations or
estimates of future performance constitute "forward-looking
statements". The words "believe", "expect", "will",
"anticipate", "contemplate", "target", "plan", "continue",
"budget", "may", "intend", "estimate", and similar expressions
identify forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic, and competitive uncertainties
and contingencies. The Company cautions the reader that such
forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual
financial results, performance, or achievements of Magellan to be
materially different from the Company's estimated future results,
performance, or achievements expressed or implied by those
forward-looking statements, and the forward-looking statements are
not guarantees of future performance. These statements may
relate to Magellan's businesses, prospects, and other matters that
involve a number of risks and uncertainties that may cause actual
results to differ materially from the results expressed or implied
in the forward-looking statements. Among these risks and
uncertainties are: (i) operational risks in development,
exploration, and production; (ii) delays or changes in plans with
respect to exploration or development projects or capital
expenditures; (iii) risks associated with equipment procurement and
equipment failure; (iv) fluctuations in oil and gas prices; (v)
access to capital markets and other uncertainties related to
funding; and (vi) those set forth in the Risk Factors sections of
Magellan's most recent 10-K and subsequent 10-Qs filed with the
SEC.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except as required by
applicable law.
ABOUT MAGELLAN
Magellan is an independent energy
company engaged in the exploration, development, production, and
sale of crude oil and natural gas from currently held assets in
the United States, Australia, and the United Kingdom.
Traded on NASDAQ since 1972, the Company conducts its operations
through two wholly owned subsidiaries, Nautilus Poplar LLC, which
owns interests at Poplar, a highly attractive oil field in the
Williston Basin, and Magellan Petroleum Australia Limited, a
successful independent oil and gas company in Australia and the UK in existence since
1964. 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 at 720.484.2404
SOURCE Magellan Petroleum Corporation