Amadeus Basin Focus Area

Magellan operates the Palm Valley gas field in the Amadeus Basin which in calendar 2007 supplied 3.7 PJ (3.2 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 2007 totalled 148.5 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 2007 was 42 Bcf. During the calendar 2007 the field produced sales gas at the rate of approximately 10 TJ (9 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 calendar 2007 oil and condensate production was approximately 0.336 MMSTB and gas sales were approximately 17 PJ (15 Bcf). The field produced oil and condensate at the rate of approximately 920 BOPD and sales gas at the rate of around 47 TJ (41 MMcf) per day during calendar 2007. Magellan’s share of proved and probable remaining recoverable reserves at 31 December 2007 was 1.1 MMSTB of oil and condensate and 45 Bcf of gas.

A retention lease is held over the Dingo gas discovery. The development of the 13 Bcf gas resource is currently believed to be uneconomic and is therefore classified as contingent resources.

Key

MMcf	Million cubic feet	Bcf	Billion cubic feet
PJ	Peta (10¹⁵)Joules	BOPD	Barrels of oil per day
MMSTB	Million stock tank barrels	TJ	Tera (10¹²) Joule

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use terms on this web site, such as recoverable barrels of oil, oil-in-place, recoverable oil reserves and probable and possible reserves, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our SEC filings on EDGAR. The Company's Form 10-K can be obtained by writing to the Company at 7 Custom House St., 3rd Floor, Portland, ME 04101. You can also obtain this form from the SEC by calling 1-800-SEC-0300.

The information furnished in this Website by the Company may not be the latest and most current data available. Although the Company will use its best efforts to keep this information current, it does not undertake any duty to continuously update all of the information contained herein.