Located in PL 51 in Queensland's Eromanga Basin Thungo 8 was 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.

Wireline logs and pressure data have been acquired and confirmed that the well intersected the formation above the oil water contact although Magellan general manager Gwynn Davies said there were no production figures at present.

Production casing has since been run and cemented and the rig released with Davies confirming the future plan will be to fracc the well and conduct a production test.

The Thungo field is also conveniently located around 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.