PORTLAND, Maine, March 15, 2012 /PRNewswire/ -- Magellan Petroleum Corporation ("Magellan" or the "Company") (NASDAQ: MPET) (ASX: MGN) today reported several positive developments from its operations in the East Poplar Unit in the Williston Basin, Montana.
The Company, through the efforts of its contract partner, VAALCO Energy, Inc. ("VAALCO") (NYSE: EGY), has successfully completed a vertical well (the EPU #120 well) in the deeper formations of the East Poplar Unit. VAALCO has run a production liner in this well and is in the process of evaluating the pressure, log, and core data to determine the best testing and completion procedure, which they expect to perform within the next four to eight weeks. Data collected in the Bakken, Three Forks, Nisku, Red River, and Winnipeg formations suggests each of these formations may be prospective for commercial production. Magellan was fully carried through the drilling of the well and upon completion will own an undivided 35% of the EPU #120 well and any production therefrom. VAALCO has also announced its intention to drill the second commitment well in the deeper formations of Poplar as a horizontal Bakken well in 2012.
"This Unit on the Poplar Dome has produced for decades and continues to provide outstanding opportunities in a variety of different intervals. This well substantiates the Company's belief that lower Paleozoic production will underlay much of the Poplar structure," said Tom Wilson, President and CEO.
In addition, the Company reported that in the 100% owned shallow formations of Poplar its previously announced Amsden discovery (the EPU # 117 well) has continued to flow oil since the end of January and the Company intends to place this well on pump by early April. Magellan continues to evaluate this well and looks forward to confirming this discovery with either a new well or a recompletion within an existing well in the near future.
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