 Financing Review May, 2010 New York William H. Hastings Portland, Maine Exhibit 99.1 |
 Forward-Looking Statements Forward-Looking Statements Except for historical information, this presentation contains forward looking statements and information with respect to net reserve valuations and sums, gas sales in Australia and its valuation, oil and gas development projects, expense reduction plans and other potential development projects, exploration and drilling plans. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied from such information. The United States Securities and Exchange Commission (SEC) permits oil and gas filings with the SEC to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Investors are urged to consider closely the disclosures in Magellan’s periodic filings with the SEC available from us at the company’s website www.magellanpetroleum.com |
 Magellan; publicly listed E&P company • $112mm market Cap trading under the symbol : MPET No Sell-Side Research Coverage $38mm of Cash and no debt • Net of A$15 million spent for recent Evans Shoal property acquisition Owns onshore gas fields in Australia • $20mm of Proved PV-10 as of June 30, 2009 • Proved reserves understate physical reserves as Gas Contracts with Darwin are expiring • If full gas sales are achieved, PV-10 is $70-80 million. New management installed in 2008 New Strategic investor acquired 27% stake in 2009 Acquired two growth projects, • the Poplar Dome fields in Montana • the Evans Shoal gas field, offshore Australia • Together, the fields have 450 million BOE of net resource (adjusted for CO2 content) • 220 million BOE is planned for development by 2014 Overview Key Points |
 1954 1954 • • MPET listed as exploration-oriented oil company MPET listed as exploration-oriented oil company -oriented oil company oriented oil company 1960’s 1960’s • • Amadeus Basin Gas Fields in Central Australia discovered with partner, Santos. Amadeus Basin Gas Fields in Central Australia discovered with partner, Santos. rtner, Santos. 1980’s and 90’s 1980’s and 90’s • • Pipeline completed connecting gas fields and Darwin. Gas fields Pipeline completed connecting gas fields and Darwin. Gas fields produce 40 mmcfd produce 40 mmcfd mmcfd gross for more than gross for more than 25 years. 25 years. 2003 2003 • • Amadeus Amadeus Basin Basin Gas Gas Fields Fields lose lose tender tender for for renewal renewal of of 25 25 year year gas gas sales sales contract contract to to Darwin Darwin to to Eni’s Eni’ s ’s s Black Black Tip offshore field to spur development of this undeveloped field Tip offshore field to spur development of this undeveloped field December 2008 December 2008 • • Bill Bill Hastings Hastings is is hired hired as as new new CEO CEO with with mandate mandate to to reposition reposition company. company. July 2009 July 2009 • • YEP YEP Energy Energy Fund Fund completes completes $10mm $10mm strategic strategic investment investment and and adds adds Wilson Wilson and and Bogachev Bogachev to to Board Board October 2009 October 2009 • • Announced Announced HOA HOA and and Exclusivity Exclusivity with with Major Major Global Global Methanol Methanol producer producer October 2009 October 2009 • • Acquired Acquired control control of of 69% 69% (57.4% (57.4% effective) effective) interest interest in in Poplar Poplar Dome Dome Fields Fields in in Montana Montana for for MPET MPET stock stock April 2010 April 2010 • • Acquired Acquired 40% 40% interest interest in in from from 6.5 6.5 to to 8 8 TCF TCF (Santos (Santos 6.6 6.6 TCF) TCF) undeveloped undeveloped gas gas field field in in Australia Australia for for $91mm $91mm • • Announced Announced acquisition acquisition of of an an additional additional 26% 26% interest interest in in Poplar Poplar Dome Dome fields fields for for $5 $5 mm mm cash. cash. Background |
 Management Team Management Team 100 years + of oil industry experience (added last year) • William Hastings Joined in 2008, retired in 2007 from Marathon Oil Corporation after 27 years there. Last 8 years (off/on) involved with North Sea (Alvheim development) and Africa (EGLNG) Undergraduate and MBA degrees (Purdue and Indiana) • J. Tom Wilson Founded international group at Apache Corporation; managed first entry into Australia Board Member representing YEP Investment Fund CEO of Khanty Mansysk Oil (KMOC) sold to Marathon • Nikolay Bogachev Chairman and CEO of the two Companies that developed Yamal LNG; sold to GazProm in 2006 Board Member representing YEP Investment Fund Founder of Khanty Mansysk Oil • Hugh Roberts Commercial Advisor. Retired from Marathon Oil as Manager of Industry/Regulatory Affairs Past Vice Chairman of Gas Industry Standards Board • COO and CFO being recruited Advisory Roles • Les Thomas • Currently Group Director, Production Facilities, Wood Group. Formerly President, Marathon Oil UK Offices in Portland, Maine; Denver, Colorado; Brisbane, Australia |
 |
     Elm Coulee Bakken play “Brigham” Bakken play Magellan Poplar Dome Saskatchewan Power potential CO2 separation project Existing CO2 extraction and sale plant and pipeline (shown in solid red) Existing , successful CO2 flood properties Burlington Northern Mainli (black) Northern Border Gas Pipeli (light blue) |
 Poplar Dome Plans - Poplar Dome Plans - 2011 2011 • Drill Infill wells, Evaluate Bakken JV, Test CO2 factors Infill • Drill up to eight infill wells out of thirty-six infill locations • Probable reserves at 600k to 1.2 million barrels per well • Capital cost for eight wells will be $12 million • Finding and Development costs are $2.50 per barrel • Further geophysical work on correlations with emphasis on NW syncline and southwest nose Bakken • Evaluate farm-out and joint venture options for 23,000 ac. Bakken play • Existing well penetrations, good reservoir quality, source shale for other Poplar zones • Third party engaged to manage the process. Working partner issues. Target completion August, 2010 CO2 Flood • Complete three single well tracer operations to test Residual Oil saturation • CO2 effectiveness driven by saturation • Examine part-scale startup economics for northwest side of the field. |
 Growth Opportunity Growth Opportunity 2. Gas to Methanol development, offshore Australia Signed Agreement to acquire a 40% operating interest in the Evans Shoal field, offshore Australia with estimated gross contingent resources of 6.5 to 8 TCF (analysis dependent) and 50 mmbbls condensate. • Resource acquisition cost of $182 million equates to 5.7 cents/mcf in the ground or 33 cents/ barrel equivalent • Will pay $91 million to Santos at Closing • Contingent $45 million due on development plan approval: second contingent $45 million due at first gas • Partners are Shell (25%), Petronas (25%), and Osaka Gas (10%) Development plan addresses less than 25% of reserves • Significant Capital Project in partnership with large petrochemical companies • $3.7 billion gross including field, plant, and pipeline. $1.5 billion net or $2.00 per mcf • Methanol value yield $325 per Ton is $10.50/mmbtu at plant inlet gas (adjusted for plant shrinkage, but using CO2) Global Methanol demand expected to grow at 8% • From 2009 to 2014, demand sources from DME and MEOH fuel additive growth • Methanol demand has already increased by 250% since 1995 |
 Abadi 10-14.5 TCF Evans Shoal 8 TCF Heron /Blackwood 1.5 TCF Greater Sunrise 6+ TCF Black Tip 500 BCF Petrel & Tern 2 TCF Caldita - Barossa 6 TCF Turtle/Barnett (Undeveloped Oil) Chuditch 700 BCF Bayu Undan 8 TCF Ichthys 14 TCF Kelp 700 BCF Montara 2 TCF Saratoga & Prometheus 1.5 TCF Crux, Padthaway Complex 2 TCF Brewster 800 BCF Scott Reef & Brecknock 18 TCF Darwin Lynedoch 1 TCF Vienta, Waggon Creek, Weaber (Gas) Mapped; 82 TCF Frigate Deep 500 BCF Evans Shoal South 500 BCF |
 |
 Australia Gas to Methanol Overview Australia Gas to Methanol Overview • Development using excess CO2 in process |
 Evans Shoal Plans Evans Shoal Plans • Size and Gas quality testing, followed by development Fiscal 2011 Plan • Receive Co-owner vote to become Operator • $80 million gross capital expenditure • $32 million net • Two delineation wells with significant testing component • Transition seismic work across shallow shoal zone • Further geophysical work on correlations with emphasis on NW syncline and southwest nose Fiscal 2012 to 2014 Plan • Target FID (Final Investment Decision) for Q3 2012 • Minimum development plan (field only) ; $560 million gross • Nine total production wells • Shallow water, subsea tie backs to jackup production platform • Water and CO2 separation facilities as needed (Pipeline to shore requires all water be removed) Production startup, 360 mmcfd minimum, 2015 |
 Legacy Projects Legacy Projects • Existing onshore licenses and production Mereenie Oil Field, onshore Australia • $175 million PV-10 gross, Magellan is 35% • Additional 70mmboe of contingent resource on the western end (not in PV) • Proven reserves of 150BCF and 2 mmbbls • Significant Bakken-style drilling technology potential • Operator, Santos has their 65% for sale • Could sell given positive developments in Santos sale effort – else, takeover and develop Palm Valley Gas Field, onshore Australia • $45 million PV-10, Magellan is 52% and operates • Proven reserves of 50 BCF • New gas sales contract for remaining life of reserves • Could sell as part of Santos process United Kingdom drilling development • Offset drilling to existing oil production • Two or three near-term well candidates, development located in same basin as Wytch Farm • Deep Gas potential (farm-out discussions now) • Available for sale |
 Capital Plan Capital Plan • Financing Requirements Fiscal 2011 (30th June, 2010 to 30th June, 2011) Preliminary Budget Growth Projects Poplar Dome area, Montana Drill up to eight infill oil wells 12.0 $ Complete Single Well Tracer program on up to four wells 2.0 $ Evans Shoal Area, Australia Remaining Acquisition Payment 78.7 $ Drill two delineation wells 23.7 $ Complete Transition Seismic work on shallow shoal 2.0 $ Complete Geophysical correlation studies 1.0 $ Pre FEED work 5.0 $ Legacy Projects Drill and complete two onshore UK exploration wells 4.9 $ Complete Onshore well test / drilling strategy 2.0 $ Contingency 13.1 $ Total 144.3 $ Cash on Hand (38.0) $ 2011 to be Financed 106.3 $ |
 Comparison; Magellan (MPET) with Interoil (IOC) MPET is significantly undervalued Comparison of Interoil and Magellan Company Variables Interoil - IOC Magellan - MPET Shares Outstanding 44.85 51.90 Share Price 68.00 $ 2.16 $ Market Capitalization 3,049.8 $ 112.1 $ Cash 75.80 38.00 Debt 52.60 0.50 Value of Refinery & Proven Reserves 365.00 97.38 Mereenie/PV only Remaining Cost of Evans Shoal Acquisition 78.66 EV of Resources 2,661.60 55.88 Identified Net Resources (mmboe) 900 450 net of CO2 Identified Net Resources - to be developed by 2014 457 220 Location Papua NG Montana & Australia Commercialization LNG & NGL Methanol & CO2 flood EV/ Resource BOE 2.96 $ 0.12 $ EV/ Resources to be Developed 5.82 $ 0.25 $ |
 Additional Documents / Data |
 |
 Closest Supply Magellan Business Model Pacific Develop “discovered” resource for Asia Redevelop underdrilled, existing assets Reserves Available Entry costs from US$ .05/mcf and up (proven undeveloped) LNG and Methanol technologies usable Methanol Needed US$12 per mmbtu equivalent delivered Correlated to oil Methanol is the “Ethanol” of China. It is used as vehicle fuel supplements there by Government order. There are no new Pacific Methanol plants on the “drawing board” now |
 Browse / Bonaparte Basins Acquired 40% and Seeking operating interest Evans Shoal, 100% interest NT09-1 Contingent Resource 6-8 TCF+ Carnarvon Basin 3C 115 TCF ** Darwin Alice Springs Amadeus Basin 40mmcfd production level, two field, oil ring also in production Contingent Resource 300BCF and up to 70mmbbl gross after significant, successful development drilling |
 Central Darwin (pop 120,000) Bayu Undan LNG (complete) East Jetty (offtake connections) NT Power Plants Darwin Airport Methanol Plant Sites |