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DENVER, CO --(Marketwired - March 02, 2016) - Magellan Petroleum Corporation (NASDAQ: MPET) ("Magellan" or the "Company") today announced updated results of a flow test of the Horse Hill-1 well located in the Weald Basin, onshore UK, which is operated by Horse Hill Development Limited ("HHDL") and in which Magellan has a 35% interest.
UK Oil & Gas Investments PLC ("UKOG"), listed on the AIM of the London Stock Exchange, owns direct and indirect interests totaling approximately 20% in the Horse Hill-1 well. On March 1, 2016, UKOG announced that HHDL had informed them of the results of the flow test of the Upper Kimmeridge limestone interval, which followed the previously announced flow test of the Lower Kimmeridge limestone interval, indicating that 100% dry, light, 40-degree API, sweet oil has flowed naturally to the surface from the Upper Kimmeridge limestone interval at a rate of approximately 900 bopd.
The Horse Hill-1 well lies within the license area of PEDL 137. Pursuant to a farmout agreement executed in December 2013, HHDL is the operator of and owns a 65% interest in both the license and the well, and Magellan is carried 100% for its 35% share of the costs of this well, including drilling, testing, and completion costs.
J. Thomas Wilson, President and CEO of the Company, commented, "We continue to be encouraged with the results of the flow test of Horse Hill, which provided evidence of free flowing oil from two of the three formations planned to be tested. We believe that the results from the Lower and Upper Kimmeridge limestone formations are particularly relevant considering that these formations extend throughout the Weald Basin. The next step of the flow test consists of testing the Portland sandstone formation."
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of securities laws. The words "believe", "expect", "intend", "plan", "potential", and similar expressions are intended to identify forward-looking statements. These statements involve a number of known and unknown risks which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include factors such as the uncertain nature of the flow test results for the Horse Hill-1 well, which are subject to further testing, analysis, and interpretation, and are not necessarily indicative of future production or ultimate recovery of oil from the well, PEDL 137, or the Weald Basin; the uncertainty of drilling and completion conditions and results; possible geologic or other obstacles to the further development of, and obtaining commercially acceptable levels of production from, the Horse Hill-1 well, PEDL 137, and the Weald Basin; uncertainties inherent in projecting future rates of production from the Horse Hill-1 well; the uncertain nature of oil and gas prices in the UK, including uncertainties about the duration of the currently depressed oil commodity price environment and the related impact on the ability to obtain project development financing; the Company's limited amount of control over activities on its non-operated properties; the uncertain nature of the anticipated value and underlying prospects of the Company's UK acreage position; government regulation and oversight of drilling and completion activity in the UK, including possible restrictions on hydraulic fracturing that could adversely affect the ability to realize value from unconventional resource projects; the uncertain nature of the overall political and social environment in the UK with respect to conventional and unconventional oil and gas developments; uncertainties regarding the Company's ability to maintain sufficient liquidity and capital resources to fund operations or otherwise continue as a going concern; and other matters discussed in the "Risk Factors" section of the Company's 2015 Form 10-K and any updates thereto in subsequent reports filed with the SEC. The forward looking statements in this press release speak as of the date of this release. Although the Company may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.
Magellan Petroleum Corporation is an independent oil and gas exploration and production company focused on CO2-EOR projects in the Rocky Mountain region. Historically active internationally, Magellan also owns significant exploration acreage in the Weald Basin, onshore UK, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia. Our strategy is to enhance shareholder value by maximizing the value of our existing assets. Our portfolio of operations includes several early stage oil and gas exploration and development projects, the successful development of which requires significant capital, as well as significant engineering and management resources. Magellan routinely posts important information about the Company on its website at www.magellanpetroleum.com.
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