The program has been designed to increase gas deliverability from the basin, which contains a naturally fractured gas reservoir.

The second step of the program will see Magellan participate in two gas development wells at the Mereenie oil and gas field in the Amadeus Basin, to be drilled by Santos using the same rig as Palm Valley-11.

Elsewhere in Australia the company will take part in two exploration wells in the South Australian Cooper-Eromanga Basin and one in the southern Browse Basin, offshore Western Australia.

In South Australia the Myponga-1 (PEL 94 – Magellan 35%) and Noarlunga-1 (PEL 95 – Magellan 50%) wells will be drilled by the joint venture operator Beach Petroleum in June targeting oil plays in the Jurassic, Triassic and Permian sequences of the Cooper-Eromanga Basin.

The South Galapogas-1 offshore well (WA-306-P – Magellan 12.5%) will be drilled by Antrim Energy following a farm out agreement which saw Magellan pass on a 37.5% interest in the permit to Antrim, who is now responsible for funding the well.

Magellan also holds interest in Tap Oil’s Miromiro-1 exploration well in New Zealand’s onshore Taranaki Basin and Northern Petroleum’s Sandhills-2 well as part of the PEDL 113 joint venture in the UK.