MAGELLAN PETROLEUM CORPORATION

Company Business

Magellan Petroleum Corporation (the "Company" or "MPC") is engaged in the sale of oil and gas and the exploration for and development of oil and gas reserves. The Company's principal asset is a 100% equity interest in its subsidiary, Magellan Petroleum Australia Limited ("MPAL").

MPAL owns interests in various oil and gas properties in Australia, New Zealand and the United Kingdom. MPAL's major Australian assets are two petroleum production leases covering the Mereenie oil and gas field (35% working interest), three petroleum production leases covering the Nockatunga oil field (41% working interest) and one petroleum production lease covering the Palm Valley gas field (52% working interest). Both the Mereenie and Palm Valley fields are located in the Amadeus Basin in the Northern Territory of Australia. The Nockatunga field is located in the Cooper Basin located in South Australia. Santos Ltd., a publicly owned Australian company, owns a 48% interest in the Palm Valley field and a 65% interest in the Mereenie field.

In Canada, the Company has a direct 2.67% carried interest in the Kotaneelee gas field in the Yukon Territory of Canada.