Thungo 8 is designed to access un-drained oil in the northeastern portion of the Thungo field. The primary target of the well is the Murta Formation, which is the productive reservoir in the field.

The well is situated around 420m to the northeast of the Thungo 7 well in the Thungo field, which is 20km southeast of the Jackson Oil Facility in southwest Queensland.

Magellan's stake in the field was acquired in its purchase of Voyager's Nockatunga oil producing assets in southwest Queensland, leaving the company with a 40.936% working interest in the ATP 267P, PL 33, PL 50 and PL 51 permits in the Eromanga Basin

Thungo-8 will be immediately followed by the Callisto 1 exploration well located in the northern portion of ATP 267 P and will target both Jurassic oil and Permian gas potential.

Additional oil development wells on both the Thungo and Maxwell fields are also being considered for 2004.