Magellan Petroleum
-2006-
  Magellan Petroleum Australia Limited (Magellan) is a wholly-owned subsidiary of the US company Magellan Petroleum Corporation. The Company engaged in oil and gas exploration and production, principally in Australia. Magellan operates the Palm Valley gas field in the Amadeus Basin which in the calendar year 2006 supplied 4.1 PJ (3.6 Bcf) of natural gas to markets in the Northern Territory, principally to Darwin and Alice Springs. Gas sales to Alice Springs commenced in 1983 and to Darwin in 1986. Proved ultimate recoverable gas reserves at Palm Valley are estimated at 226 Bcf and cumulative production to 31 December 2006 totalled 145 Bcf. Magellan holds a 52.023 percent working interest in the field and its share of remaining proved and probable recoverable gas reserves at 31 December 2006 was 44 Bcf. In 2006 the field produced sales gas at the rate of approximately 11 TJ (10 MMcf) per day. The Company holds a 35 percent working interest in the Mereenie oil and gas field, also in the Amadeus Basin, which is operated by Santos Ltd. The Mereenie field commenced crude oil production in 1984 and gas sales in 1987. A total of 62 wells have been drilled on the field and during 2006 oil and condensate production was approximately 0.33 MMSTB and gas sales were 16.4 PJ (14.0 Bcf). The field produced oil and condensate at the rate of approximately 920 BOPD and sales gas at the rate of around 45 TJ (38 MMcf) per day during 2006. Magellan’s share of proved and probable remaining recoverable reserves at 31 December 2006 was 1.2 MMSTB of oil and condensate and 50 Bcf of gas. The Company has interests in five production leases and five exploration licences in the Cooper-Eromanga Basin, Australia’s most prolific onshore hydrocarbon province. Production from the Nockatunga production leases in Queensland, which are operated by Santos Ltd totalled approximately 390 BOPD during 2006. Magellan has a 40.936% interest in the production leases and its share of proved and probable remaining recoverable reserves at 31 December 2006 was 0.8 MMSTB of oil. Magellan has a 30% interest in the Kiana oil field in South Australia, which is operated by Beach Petroleum and its share of proved and probable remaining recoverable reserves at 31 December 2006 was 0.1 MMSTB of oil. Magellan also has interests in 13 exploration and development licenses in the onshore portion of the Weald and Wessex Basins, in southern England in the United Kingdom, where it is exploring for oil. Magellan’s growth strategy is to actively seek new exploration and acquisition opportunities, principally in its two core areas of the Cooper-Eromanga Basin of Australia and the Weald Basin of southern UK, to augment its proven and probable reserves of 20 million barrels and its annual sales of 1.4 million barrels of oil equivalent.
Updated : January 2007 |
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