Weald-Wessex Basins Focus Area

Magellan also has interests in 11 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 hydrocarbons. 7 more are currently being awarded. Varying interests are held in each permit as listed below. The licenses have been built up over a period of 7 years and drilling will commence in PEDL 126 in the fourth quarter of 2008. The well, Markwells Wood-1, is interpreted to address an extension of the Horndean oil field to the west. Four other wells, Horse Hill-1 (PEDL 137), Manor Farm-1 (PEDL 135), Prospect A (PEDL 099) and Prospect B (PEDL 125) are currently moving through planning approval with the various UK government entities. Due to the timeframes involved in receiving planning approvals these wells are likely to be drilled during 2009/10.