HARTFORD, Conn., April 29 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (NASDAQ:MPET)(AMEX:MGN) ("Magellan") announced its production and exploration activities for the quarter ended March 31, 2008.
OIL & GAS SALES Natural Gas The Company's share of natural gas sales during the quarter ended March 31, 2008 decreased by 7 percent from the March 2007 quarter, as detailed below: Field (Magellan Share) Million Cubic Feet Terajoules Variance
Total Daily Mereenie 1,277 14 1,492 -6%
Palm Valley 388 4 442 -13%
Total Gas 1,665 18 1,934 -7%
Crude Oil and Condensate The Company's share of crude oil and condensate sales during the quarter ended March 31, 2008 increased by 6 percent from the March 2007 quarter, as detailed below: Fields (Magellan Share) Barrels Kilolitres Variance
Total Daily Mereenie 26,790 294 4,259 -11%
Nockatunga 27,100 298 4,309 +41%
Kiana 944 10 150 -64%
Aldinga 815 9 129 +19% Total Crude Oil
and Condensate 55,649 611 8,847 +6%
PRODUCTION AND DEVELOPMENT ACTIVITIES AUSTRALIAN PRODUCTION Palm Valley Gas Field (PL 3) -- Amadeus Basin NT (52.023% Interest)
The Palm Valley gas field which is operated by Magellan produced an average of approximately 8.2 million cubic feet per day (MMcf/D) of natural gas for sale during the March quarter. The Palm Valley Joint Venture's objective for the field is to maximise gas production from the existing facilities while maintaining a safe and efficient operation, conducted in accordance with good oil field practice.
Mereenie Oil and Gas Field (PL 4 & 5) -- Amadeus Basin NT (35% Interest) The Mereenie oil and gas field which is operated by Santos Ltd produced an average of approximately 40 MMcf/D of natural gas and 842 barrels of oil and condensate per day for sale during the March quarter. No major projects were undertaken on the Mereenie field during the quarter.
Nockatunga Oil Fields (PLs 33, 50 & 51, ATP 276P) -- Cooper Basin Qld (40.936% Interest) The Nockatunga oil fields which are operated by Santos Ltd produced an average of approximately 721 barrels of oil per day (BOPD) for sale during the March quarter.
The Kamel-1 well which was drilled in Petroleum Lease 51 as part of the 10-well exploration, appraisal and development drilling campaign during the March 2007 quarter was tied into the Thungo field facilities and brought online in early January 2008. The well produces oil from the Murta Member.
The Maxwell 5 appraisal well which was drilled in October 2007 on the Maxwell oil field in PL 50, approximately equidistant from Maxwell 3 and Maxwell 4, was tied into the field facilities and brought online in April 2008. The well produces oil from the Murta Member.
Kiana Oil Field (PPL 212) -- Cooper Basin SA (30% Interest) Production from the Kiana-1 well averaged 29 BOPD during the March quarter, which was below expectation as the well was shut-in for pump repairs during March. The well is currently producing only from the upper Patchawarra Formation zone.
Aldinga Oil Field (PPL 210) -- Cooper Basin SA (50% Interest) Production from the Aldinga-1 well is continuing at around 13 BOPD. There are no current plans to develop the field further.
CANADIAN PRODUCTION Kotaneelee Gas Field, YT (2.67% interest)
Magellan has a 2.67% carried interest in the Kotaneelee gas field in the Yukon Territory of Canada. Devon Canada Corporation is operator of this partially developed field which is connected to a major pipeline system.
EXPLORATION ACTIVITIES AUSTRALIAN EXPLORATION Exploration evaluation of PEL 94 (Magellan 35% interest), PEL 95 (Magellan 50% interest), PEL 107 (Magellan 30% interest) and PEL 110 (Magellan 37.5% interest) is ongoing.
In ATP 613P in the Maryborough Basin of Queensland, evaluation of the coal seam gas potential of the seams in the Burrum Coal Measures in the Burrum Syncline Farmin area (Magellan 10%) is continuing.
UNITED KINGDOM EXPLORATION Magellan (40% interest) will participate in the Markwells Wood-1 exploration well in PEDL 126 and the Leigh Park-1 exploration well in PEDLs 099/155 of the Weald Basin of southern England later in 2008/early in 2009. Well sites and planning consents are being sought for the drilling by Northern Petroleum, operator of these joint ventures. Both wells will target oil in the Great Oolite Formation, and Markwells Wood-1 will test a possible eastern extension of the currently producing Horndean oil field.
Magellan holds interests (ranging from 22.5% to 50%) in five other exploration licences in the Weald-Wessex Basin (PEDLs 098, 125, 152, 153 and 154), which are also operated by Northern Petroleum. PEDL 112 (Magellan 33.3%) in the eastern Weald Basin expired at the end of its 6-year initial exploration period in January 2008. Elsewhere in the Weald Basin, PEDLs 135, 136 and 137 are held and operated by Magellan with a 100% interest. Planning for the drilling of two prospects identified in PEDL 135 and PEDL 137 in 2009 has commenced.
EXPENDITURES Expenditures incurred on exploration, appraisal and development activities during the March 2008 quarter, totalled US$725,000. All figures are unaudited.
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 pricing and production levels from the properties in which Magellan and MPAL have interests, the extent of the recoverable reserves at those properties, the future outcome of the negotiations for gas sales contracts for the remaining uncontracted reserves at both the Mereenie and Palm Valley gas fields in the Amadeus Basin, including the likelihood of success of other potential suppliers of gas to the current customers of Mereenie and Palm Valley production. In addition, MPAL has a large number of exploration permits and faces 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. DATASOURCE: Magellan Petroleum Corporation CONTACT: Daniel Samela for Magellan Petroleum Corporation, +1-860-293-2006
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