The company has been forced to plug and abandon as a dry hole Myponga-1 after reaching total depth without encountering any significant hydrocarbons. Magellan held a 35% interest in the well with Beach 50% and Black Rock 15%.

Additionally it was UK-listed Black Rock's first well for many years, since new management was appointed at the start of the year in the form of managing director Ivan Burgess.

The next well in the Cooper Basin drilling program is Noarlunga-1 which will test an anticlinal structure located in PEL 95 in the Southern Cooper Basin, around 80km southeast of the Moomba facility. Beach Petroleum and Magellan will be equal partners in the well.

Magellan has had considerable difficulty with its Palm Valley-11 well and has been forced to conduct fishing operations in a bid to retract the drill string which was lost on the 17th of June. The company is currently preparing a forward program for sidetracking the well in case the fishing is unsuccessful.

Magellan owns a 52.023% in the well with Santos holding the remaining 47.977%.