Magellan Petroleum Corporation (MPET)

Operations

United Kingdom

In the UK, oil and gas plays are currently developing in several onshore geologic basins that contain significantly large shale and tight reservoirs.  Through the use of unconventional drilling technology developed in the US, the substantial hydrocarbon resources contained in these reservoirs can now be produced economically.  In addition, high commodity prices and national security considerations in the UK are creating a macro-economic environment that further encourages the development of these plays.

Magellan's onshore UK acreage position is located in the Weald Basin, which is geographically situated southwest of London and which contains multiple unconventional and conventional oil and gas prospects.  In the central Weald Basin, Magellan co-owns equally three licenses (PEDLs 231, 234, and 243) with Celtique Energie, representing 124 thousand net acres, that are prospective for unconventional oil and gas development from the Kimmeridge Clay and Liassic formations and may be prospective for conventional development in other formations.  Celtique Energie operates these licenses.  On the periphery of the Weald Basin, Magellan maintains non-operated interests in five additional exploration licenses, representing an additional 39 thousand net acres, that may be prospective for conventional oil and gas targets.

For more information or updates about drilling and operating oil and gas permits in the UK, please visit the United Kingdom Onshore Operators Group ("UKOOG").

The map below illustrates the position of our various PEDLs. The table below the map provides selected information about each PEDL.

Magellan's UK Acreage Position

Permit Geologic Basin Expiration Date Operator Ownership Interest Gross Acres Net Acres
Central Weald licenses prospective for unconventional development
PEDL 231 Weald 6/30/16 Celtique 50% 98,800 49,400
PEDL 234 Weald 6/30/16 Celtique 50% 74,100 37,050
PEDL 243 Weald 6/30/16 Celtique 50% 74,100 37,050
        Subtotal 247,000 123,500
Licenses containing Horse Hill conventional Triassic play
PEDL 137 Weald 9/30/14 Angus 35% 24,525 8,584
PEDL 246 Weald 6/30/15 Angus 35% 10,769 3,769
        Subtotal 35,294 12,353
Other licenses on periphery of Weald Basin
PEDL 232 Weald 6/30/14 Celtique 50% 23,342 11,671
PEDL 126 Weald 6/30/15 Northern 40% 30,124 12,050
P1916 Wessex 1/31/16 Northern 23% 11,535 2,595
        Subtotal 65,001 26,316
        Total 347,295 162,169

 

Notes:
Formal transfer of 65% ownership in, and operatorship of, PEDLs 137 and 246 subject to Angus funding and drilling a first obligation well.
PEDLs 155 and 256 have been relinquished effective March 31, 2014, due to a determination by the joint venture of limited development prospectivity within the license areas.
PEDL 240, which was located on the Isle of Wight, was relinquished effective March 6, 2014, due to inability to secure a suitable drill site.