DENVER, Jan. 28, 2013 /PRNewswire/ -- Magellan
Petroleum Corporation ("Magellan" or the "Company") (NASDAQ: MPET)
(ASX: MGN) today announced several updates with respect to its
Australian operations.
NT/P82, Bonaparte Basin
In December 2012, Magellan
successfully conducted, via a third-party contractor, a 3-D and 2-D
seismic survey over its NT/P82 Exploration Permit in the Bonaparte
Basin, offshore Northern Territory, Australia. The seismic recording vessel
Voyager Explorer, operated by Seabird Exploration FZ-LLC,
acquired a total of 76 square miles of 3-D full fold data and 65
miles of 2-D full fold data. The survey was completed on time and
approximately $500 thousand under
budget. Currently, the seismic data is being processed by
CGGVeritas. The results of processing and interpreting the seismic
data are expected to be available in or around May 2013.
Dingo Gas Field, Amadeus Basin
The Company remains focused on developing and executing a plan
to bring Dingo gas to market in order to generate sustainable
revenue from this asset. The Company is in active discussions
with potential customers regarding long-term gas supply from Dingo.
In parallel to the marketing effort, Magellan has recently
commissioned a preliminary front-end engineering and design
("Pre-FEED") study from GPA Engineering Pty Ltd of Adelaide, Australia, to evaluate the cost and
logistics of treating and tying-in Dingo gas to existing pipeline
infrastructure near Alice Springs in Central Australia.
Magellan is planning to use the existing two wells at Dingo to
supply gas from the field and would not be required to drill any
new wells in the medium term.
Palm Valley Gas Field, Amadeus Basin
With the termination of the long-term gas supply contract with
Power and Water Corporation in January
2012, Magellan successfully re-marketed Palm Valley's
gas.
The Palm Valley field is expected to increase its run rate
production to approximately 1.3 Bcf per year in the quarter ending
March 31, 2014, and to produce at its
full entitlement under the existing contract of 1.5 Bcf per year
during the quarter ending June 30,
2015, when customers already under contract are scheduled to
ramp-up demand for gas deliveries. Current net sales volumes
average approximately 0.6 MMcf per day, representing approximately
15% of the field's current production capacity. In an effort
to accelerate full production from Palm Valley, Magellan remains in
active discussions with other potential customers who may be able
to take gas deliveries prior to that date.
Tom Wilson, president and CEO of
Magellan, commented, "Since the end of Palm Valley's long-term
sales contract one year ago, we have been working diligently to
return Palm Valley to full production and bring Dingo gas to
market. Meanwhile, we have been focused on pushing forward
with exploration of NT/P82. We are beginning to experience
some encouraging results from these efforts, and we believe we are
on the right path for delivering value to our shareholders from
these assets."
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. These statements
about Magellan may relate to its 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) whether the processing and
interpretation of seismic data will be concluded in or around
May 2013; (ii) whether Dingo gas can
be brought economically to market; (iii) whether Palm Valley can be
fully contracted by September 2014;
and those set forth in the Risk Factors sections of Magellan's most
recent 10-K and subsequent 10-Qs filed with the SEC.
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 the
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