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MAGELLAN PETROLEUM SUBSIDIARY REPORTS GAS FLOW

 HARTFORD, Conn., June 2 /PRNewswire/ -- Magellan Petroleum Corporation (NASDAQ: MPET) said its 51 percent-owned subsidiary, Magellan Petroleum Australia Limited, has recorded a substantial gas flow -- 15 million cubic feet per day -- from its Palm Valley No. 9 development well.
 The stabilized, open-hole flow was encountered at a depth of 7,360 feet in the P-2 sequence of the Pacota sandstone reservoir formation, the company said, noting that none of the previous Palm Valley wells have logged a commercial gas flow from the P-2 zone.
 Also noted was a previously recorded flow of 4.1 MMCFD from an overlying formation at a depth of approximately 6,000 feet.
 James R. Joyce, Magellan's chief financial officer, said the well is now about 164 feet above its planned total depth on the P-3 strata and is being readied for a resumption of drilling.
 Palm Valley, Australia's largest single onshore gas field, is now producing about 25 MMCFD on average, principally for electric power generation in Darwin. Proved and probable reserves thus far established are 1.36 trillion cubic feet, as adjusted for production to date.
 As previously reported, Sagasco Holding Ltd. has made a tender offer for all Magellan's shares at $1.50 per share. According to Joyce, the PV-9 gas flows support last week's recommendation by Magellan's board of directors that now is certainly not the time to sell the company, and that shareholders should not tender their shares to Sagasco.
 "Magellan's interest in the Palm Valley field is a strategic asset in the energy future of central and south Australia -- an asset that Sagasco desperately wants," said Joyce. "Only additional production and development will reveal the full extent of Palm Valley's reserves."
 -0- 6/2/93
 /CONTACT: Arthur B. O'Donnell of Magellan Petroleum Corporation, 203-525-1202/
 (MPET)


CO: Magellan Petroleum Corporation ST: Connecticut IN: OIL SU:

TM -- NY005 -- 4274 06/02/93 08:01 EDT
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Publication:PR Newswire
Date:Jun 2, 1993
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