UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

(Mark one)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended                 December 31, 2000
                               -------------------------------------------------

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ____________________

Commission file number     1-5507
                       --------------

                         MAGELLAN PETROLEUM CORPORATION
 ................................................................................
             (Exact name of registrant as specified in its charter)

            DELAWARE                                            06-0842255
 ................................................................................
 (State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                             Identification No.)

149 Durham Road, Madison, Connecticut                            06443
 ................................................................................
(Address of principal executive offices)                       (Zip Code)

                                  203-245-7664
 ................................................................................
              (Registrant's telephone number, including area code)

 ................................................................................
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
l934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.
                                                         |X|  Yes      |_|   No

         The number of shares outstanding of the issuer's single class of common
stock as of February 11, 2001 was 24,985,726.






                         MAGELLAN PETROLEUM CORPORATION

                                    FORM 10-Q

                                DECEMBER 31, 2000

                                      INDEX

                         PART I - FINANCIAL INFORMATION


ITEM 1   Financial Statements                                              Page

         Consolidated balance sheets at December 31, 2000
         and June 30, 2000                                                  3

         Consolidated statements of operations for the three and six
         months ended December 31, 2000 and 1999                            4

         Consolidated statement of changes in stockholders' equity for the
         six months ended December 31, 2000                                 4

         Consolidated statements of cash flows for the six months
         ended December 31, 2000 and 1999                                   5

         Notes to consolidated financial statements                         6

ITEM 2   Management's Discussion and Analysis of Financial Condition and
         Results of Operations                                              9

ITEM 3   Quantitative and Qualitative Disclosure About Market Risk         19

                           PART II - OTHER INFORMATION

ITEM 4   Submission of Matters to a Vote of Security Holders               20

ITEM 5   Other Information                                                 20

ITEM 6   Exhibits and Reports on Form 8-K                                  21

         Signature                                                         22








                         MAGELLAN PETROLEUM CORPORATION

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

Item 1.      Financial Statements

                           CONSOLIDATED BALANCE SHEETS

                                                                                     December 31,              June 30,
                                                                                         2000                    2000

                                        ASSETS                                         (unaudited)                  (Note)
                                        ------
        Current assets:
                                                                                                         
          Cash and cash equivalents                                                    $11,696,170             $13,890,834
          Accounts receivable                                                            4,214,524               3,873,398
          Marketable securities                                                          1,804,127               1,581,730
          Reimbursable development costs                                                   212,121                 138,077
          Inventories                                                                      343,530                 289,743
          Other assets                                                                     236,433                 265,462
                                                                                     -------------            ------------
                  Total current assets                                                  18,506,905              20,039,244
                                                                                       -----------             -----------

        Marketable securities                                                            1,470,299               1,476,449

        Property and equipment (successful efforts method)                              43,882,585              45,766,007
          Less accumulated depletion, depreciation and amortization                    (23,744,401)            (24,025,493)
                                                                                       ------------            ------------
        Net property and equipment                                                      20,138,184              21,740,514
                                                                                       -----------             -----------

        Other assets                                                                       673,698                 719,510
                                                                                    --------------          --------------
        Total assets                                                                   $40,789,086             $43,975,717
                                                                                       ===========             ===========
               LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS' EQUITY
        Current liabilities:
          Accounts payable                                                            $  2,739,531            $  3,024,604
          Accrued liabilities                                                              759,798                 751,399
          Income taxes payable                                                             580,221               1,216,995
                                                                                    --------------          --------------
                  Total current liabilities                                              4,079,550               4,992,998
                                                                                     -------------           -------------

        Long term liabilities:
          Deferred income taxes                                                          3,983,355               4,255,096
          Reserve for future site restoration costs                                        959,081                 934,790
                                                                                      ------------           -------------
                  Total long term liabilities                                            4,942,436               5,189,886
                                                                                       -----------            ------------

        Minority interests                                                              13,590,453              14,696,267

        Stockholders' equity:
          Common stock, par value $.01 per share:
            Authorized 250,000,000 and 50,000,000 shares
            Outstanding 25,041,226 and 25,108,226 shares                                   250,412                 251,082
          Capital in excess of par value                                                43,521,078              43,586,606
                                                                                      ------------            ------------
          Total capital                                                                 43,771,490              43,837,688
          Accumulated deficit                                                          (16,545,373)            (16,914,420)
          Accumulated other comprehensive loss                                          (9,079,470)             (7,826,702)
                                                                                     --------------          --------------
                  Total stockholders' equity                                            18,146,647              19,096,566
                                                                                      ------------            ------------
        Total liabilities, minority interests and stockholders' equity                 $40,759,086             $43,975,717
                                                                                       ===========             ===========

                                           Note: The balance sheet at June 30, 2000 has been derived
                                        from the audited consolidated financial statements at that date.








                         MAGELLAN PETROLEUM CORPORATION

                         PART I - FINANCIAL INFORMATION

Item 1.      Financial Statements

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

                                                                   Three months ended                  Six months ended
                                                                      December 31,                       December 31,
                                                                  2000             1999              2000             1999
   Revenues:
                                                                                                        
     Oil sales                                                $ 1,309,782       $ 1,220,774       $2,498,584        $2,033,032
     Gas sales                                                  2,066,663         2,936,405        4,226,250         5,380,764
     Other production related revenues                            201,778           279,709          465,284           467,875
     Interest income                                              244,427           185,224          500,257           370,145
                                                              -----------       -----------      -----------       -----------
                                                                3,822,650         4,622,112        7,690,375         8,251,816
                                                               ----------        ----------       ----------        ----------
   Costs and expenses:
     Production costs                                           1,081,311         1,376,359        1,925,012         2,341,358
     Exploration and dry hole costs                             1,077,295           853,824        1,209,280         1,133,898
     Salaries and employee benefits                               430,526           389,467          872,881         1,016,754
     Depletion, depreciation and amortization                     643,801         1,214,547        1,318,160         1,848,243
     Auditing, accounting and legal services                       54,913            74,169          156,749           230,856
     Shareholder communications                                    92,875           107,925          121,297           139,226
     Other administrative expenses                                193,149           192,444          430,805           429,334
                                                               ----------        ----------       ----------        ----------
                                                                3,573,870         4,208,735        6,034,184         7,139,669
                                                                ---------         ---------        ---------         ---------
   Income before income taxes and minority interests              248,780           413,377        1,656,191         1,112,147
     Income tax provision (benefit)                               113,611          (530,641)         592,073          (302,953)
                                                               ----------       ------------      ----------      -------------
   Income before minority interests                               135,169           944,018        1,064,118         1,415,100
     Minority interests                                           156,972           614,581          695,071           942,335
                                                              -----------       -----------      -----------       -----------
   Net income (loss)                                         $    (21,803)      $   329,437      $   369,047       $   472,765
                                                             =============      ===========      ===========       ===========

   Average number of shares outstanding
     Basic                                                     25,091,476        25,108,226       25,098,655        25,108,226
                                                               ==========        ==========       ==========        ==========
     Diluted                                                   25,091,476        25,130,373       25,098,655        25,130,373
                                                               ==========        ==========       ==========        ==========

   Net income (loss) per share( basic and diluted )                $-              $ .01             $ .01              $.02
                                                                   ==              =====             ======             =====



            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (unaudited)
                                                                                       Accumulated
                                                     Capital in                           other                      Comprehensive
                            Number      Common       excess of       Accumulated      comprehensive                     income
                          of shares     stock        par value         deficit             loss            Total        (loss)
                          ---------     -----        ---------         -------             ----            -----        ------

                                                                                                  
July 1, 2000               25,108,226   $251,082   $43,586,606      $(16,914,420)     $(7,826,702)     $19,096,566
  Repurchase of common
  stock                       (67,000)      (670)      (65,528)                -                -          (66,198)
  Net income                        -          -             -           369,047                -          369,047    $   369,047
  Currency translation
    adjustments                                                                        (1,252,768)      (1,252,768)    (1,252,768)
                           ----------   --------    ----------      ------------       -----------      -----------    -----------
  Comprehensive loss                                                                                                    $(883,721)
                                                                                                                         ==========
December 31, 2000          25,041,226   $250,412   $43,521,078      $(16,545,373)     $(9,079,470)     $18,146,647
                           ==========   ========   ===========      =============     ============     ===========







                         MAGELLAN PETROLEUM CORPORATION

                         PART I - FINANCIAL INFORMATION

Item 1.       Financial Statements

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)

                                                                                     Six months ended
                                                                                       December 31,
                                                                              2000                     1999



Operating Activities:
                                                                                                 
  Net income                                                                  $   369,047              $   472,765
  Adjustments to reconcile net income
    to net cash provided by operating activities:
    Depletion, depreciation and amortization                                    1,318,160                1,848,243
    Deferred income taxes                                                               -                 (519,911)
    Minority interests                                                            695,071                  942,335
   Increase (decrease) in operating assets and liabilities:
    Accounts receivable                                                          (820,713)              (2,594,372)
    Reimbursable development costs                                                (95,434)                 (50,397)
    Other assets                                                                  (10,253)                  68,840
    Inventories                                                                   (92,466)                (105,421)
    Current income taxes payable                                                 (527,003)                       -
    Accounts payable and accrued liabilities                                      165,283                  966,574
    Reserve for future site restoration costs                                     139,965                   81,595
                                                                            -------------            -------------
Net cash provided by operating activities                                       1,141,657                1,028,656
                                                                             ------------             ------------

Investing Activities:
  Purchase of marketable securities                                              (216,247)                (610,383)
  Repurchase of common stock                                                      (66,198)                       -
  Net additions to property and equipment                                      (1,480,653)                (647,950)
                                                                             -------------           --------------
Net cash (used) in investing activities                                        (1,763,098)              (1,258,333)
                                                                             -------------            -------------

Financing Activities:
  Dividends to MPAL minority shareholders                                        (593,034)                (730,709)
                                                                                 ---------                ---------
Net cash (used) in financing activities                                          (593,034)                (730,709)
                                                                                 ---------                ---------

  Effect of exchange rate changes on cash
  and cash equivalents                                                           (980,189)                (245,351)
                                                                            --------------           --------------
Net decrease in cash and cash equivalents                                      (2,194,664)              (1,124,142)
  Cash and cash equivalents at beginning of year                               13,890,834               13,380,699
                                                                             ------------             ------------
Cash and cash equivalents at end of period                                    $11,696,170              $12,256,557
                                                                              ===========              ===========








                         MAGELLAN PETROLEUM CORPORATION

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

                                December 31, 2000

Note 1.  Basis of Presentation

     The accompanying  unaudited  condensed  consolidated  financial  statements
include the Company's 51% owned subsidiary, Magellan Petroleum Australia Limited
("MPAL")  and have  been  prepared  in  accordance  with  accounting  principles
generally  accepted in the United States for interim  financial  information and
with  the   instructions  to  Form  10-Q  and  Rule  10-01  of  Regulation  S-X.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all adjustments  considered  necessary for a fair
presentation have been included.  All such adjustments are of a normal recurring
nature.  Certain prior year amounts have been  reclassified  to conform with the
current year presentation. Operating results for the three months and six months
ended December 31, 2000 are not  necessarily  indicative of the results that may
be expected for the year ending June 30, 2001. For further information, refer to
the  consolidated  financial  statements and footnotes  thereto  included in the
Company's Annual Report on Form 10-K for the year ended June 30, 2000.

Note 2.  Revenue Recognition

          In December 1999,  the plaintiffs  (which include the Company) filed a
motion to have the Court of  Queen's  Bench in Canada  direct  that the  working
interest parties in the Kotaneelee gas field make timely payments of all current
and future amounts due from their share of the Kotaneelee gas field revenues. In
April 2000, the trial court  dismissed the motion  pending the Court's  ultimate
determination of the issues  surrounding the Kotaneelee  field  carried-interest
account.  During November 2000, the Alberta Court of Appeal in Canada stayed the
plaintiffs' appeal.

          In view of the  Courts'  decisions,  the  Company  does not  intend to
accrue any  additional  revenues  ($43,425  had been  accrued in the fiscal year
ended June 30,  2000) from the  Kotaneelee  gas field  until  collection  of the
amounts due is reasonably assured.

         Since  March  2000,  the  operator  of the  Kotaneelee  field  has been
reporting the amount of the Company's  share of net revenues being  deposited in
escrow.  The January 2001 report provided  information for production during the
month of October 2000. Based on the reported data, the Company believes that the
total amount due the Company (before  interest) is $665,000,  of which $220,000
has been deposited in escrow.




Item 1.  Notes to Consolidated Financial Statements- (Cont'd)


Note 3.  Income Taxes

         Australia has enacted corporate tax rate reductions for the fiscal year
ending  June 30,  2001 (36% to 34%) and for the fiscal year ending June 30, 2002
(34% to 30%)  which  will  impact the  Company's  effective  income tax rates in
future periods.

Note 4.  Capital

              The  authorized  common  stock of the Company was  increased  from
50,000,000  shares to 200,000,000  shares at the Annual Meeting of  Stockholders
which was held on December 4, 2000.

          On December 8, 2000, the Company  announced a stock repurchase plan to
purchase  up to one million  shares of the  Company's  common  stock in the open
market.  At December 31, 2000, the Company has purchased 67,000 of its shares at
a cost of approximately $66,000.


Note 5.  Depletion, depreciation and amortization

         The operator of the Mereenie field is implementing an extensive program
for additional  drilling and capital  improvements.  The estimated cost of these
proposed  expenditures  (MPAL  share $8  million)  will  increase  the amount of
depletion expense in the year 2001 and in subsequent years.

Note 6.  Comprehensive Income (Loss)

         The only item included in accumulated other  comprehensive  loss is the
Company's foreign currency translation adjustments.  Comprehensive income (loss)
during the three and six months ended December 31, 2000 and 1999 was as follows:

                                                       Three months ended                   Six months ended
                                                          December 31,                        December 31,
                                                     2000              1999              2000              1999

                                                                                              
Net income (loss)                                 $  (21,803)        $ 329,437         $ 369,047          $ 472,765
Currency translation adjustments                     488,968           202,659        (1,252,768)          (272,228)
                                                   ---------         ---------        -----------        -----------
Total comprehensive income (loss)                  $ 467,165         $ 532,096         $(883,721)         $ 200,537
                                                   =========         =========         ==========         =========




Note 7.  Segment Information

         The Company has two reportable segments, MPC and its subsidiary,  MPAL.
Each company is in the same business.  MPAL also is a publicly held company with
its shares traded on the Australian Stock Exchange. MPAL issues separate audited
consolidated  financial  statements and operates  independently  of MPC. Segment
information  (in  thousands)  for the  Company's  two  operating  segments is as
follows:


                                                          Three months ended                   Six months ended
                                                  ----------------------------------- -----------------------------------
                                                             December 31,                        December 31,
                                                  ----------------------------------- -----------------------------------
                                                            2000            1999               2000             1999
Revenues:
                                                                                                
  MPC                                                 $        46      $        87         $       90       $      128
  MPAL                                                      3,777            4,534              7,600            8,123
                                                       ----------       ----------          ---------        ---------
  Total consolidated revenues                           $   3,823        $   4,621           $  7,690         $  8,251
                                                        =========        =========           ========         ========

Net income (loss):
  MPC                                                  $     (186)       $    (310)        $     (359)       $    (507)
  MPAL                                                        164              639                728              980
                                                      -----------       ----------        -----------       ----------
  Consolidated net income                             $       (22)       $     329         $      369        $     473
                                                      ============       =========         ==========        =========











8.       Stock options

     For the purpose of pro forma  disclosures,  the estimated fair value of the
majority of stock  options  are  expensed in the year of grant since the options
are normally immediately vested and exercisable.  However,  certain options that
were granted in fiscal 2000 vest over a three year  period..  The  Company's pro
forma information follows:

                                                                          Three months ended December 31,
                                                                          -------------------------------
                                                                      2000                               1999
                                                                      ----                               ----
                                                                Amount       Per Share            Amount       Per Share
                                                                                                     
Net income (loss) as reported                                 $ (22,000)        $ -               $329,000       $.01
Stock option expense                                            (21,000)          -                      -          -
                                                                --------      --------            --------      -------
Pro forma net income (loss)                                   $ (43,000)        $ -               $329,000       $.01
                                                              ==========        ===               ========       ====







Item 1.       Notes to Consolidated Financial Statements- (Cont'd)

                                                                           Six months ended December 31,
                                                                           -----------------------------
                                                                      2000                               1999
                                                                      ----                               ----
                                                                 Amount       Per Share            Amount       Per Share
                                                                                                     
Net income as reported                                         $ 369,000       $.01               $473,000       $.02
Stock option expense                                            (43,000)          -                                 -
                                                                --------      ------              --------       ----
Pro forma net income                                           $ 326,000       $.01               $473,000       $.02
                                                               =========       ====               ========       ====


Note 9.  Earnings (loss) per share

         Earnings per common share is based upon the weighted  average number of
common and common equivalent shares outstanding during the period. The Company's
basic and diluted  calculations of EPS are the same for the three and six months
ended  December  31,  2000  because  the  exercise  of options is not assumed in
calculating  diluted  EPS, as the result  would be  anti-dilutive.  The exercise
price of the outstanding  stock options exceeded the average market price of the
common stock during the 2000 period.

Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations

         Statements   included  in  Management's   Discussion  and  Analysis  of
Financial Condition and Results of Operations which are not historical in nature
are intended to be, and are hereby  identified as, "forward looking  statements"
for  purposes  of the  "Safe  Harbor"  Statement  under the  Private  Securities
Litigation Reform Act of 1995. The Company cautions readers that forward looking
statements  are  subject to certain  risks and  uncertainties  that could  cause
actual results to differ  materially from those indicated in the forward looking
statements.

         The Company follows the successful efforts method of accounting for its
oil and gas operations; therefore, the results of operations may vary materially
from  quarter to quarter.  An active  exploration  program may result in greater
exploration  and dry hole costs.  Under this method,  the cost of drilling a dry
hole is written off immediately.






                         MAGELLAN PETROLEUM CORPORATION

                                    FORM 10-Q

                         PART I - FINANCIAL INFORMATION

                                December 31, 2000

Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

          In December 1999,  the plaintiffs  (which include the Company) filed a
motion to have the Court of  Queen's  Bench in Canada  direct  that the  working
interest parties in the Kotaneelee gas field make timely payments of all current
and future amounts due from their share of the Kotaneelee gas field revenues. In
April 2000, the trial court  dismissed the motion  pending the Court's  ultimate
determination of the issues  surrounding the Kotaneelee  field  carried-interest
account.  During November 2000, the Alberta Court of Appeal in Canada stayed the
Company's appeal.

          In view of the  Court's  decisions,  the  Company  does not  intend to
accrue any  additional  revenues  ($43,425  had been  accrued in the fiscal year
ended June 30,  2000) from the  Kotaneelee  gas field  until  collection  of the
amounts due is reasonably assured.

         Since  March  2000,  the  operator  of the  Kotaneelee  field  has been
reporting the amount of the Company's  share of net revenues being  deposited in
escrow.  The January 2001 report provided  information for production during the
month of October 2000. Based on the reported data, the Company believes that the
total  amount due the Company  (before  interest) is  $665,000,  of which
$220,000 has been deposited in escrow.

         The  Company's  Annual  Report on Form 10-K for the year ended June 30,
2000 should be read for a detailed discussion of the Kotaneelee litigation.


         Liquidity and Capital Resources

Consolidated

         At  December  31,  2000,  the  Company  on  a  consolidated  basis  had
approximately   $15  million  in  cash  and  cash   equivalents  and  marketable
securities.





Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

         A summary of the major changes in cash and cash equivalents  during the
six months ended December 31, 2000 is as follows:

                                                                                            
         Cash and cash equivalents at beginning of period                                      $13,891,000
         Cash provided by operations                                                             1,141,000
         Net additions to property and equipment                                                (1,481,000)
         Purchase of marketable securities                                                        (216,000)
         Dividend to MPAL minority shareholders                                                   (593,000)
         Effect of exchange rate changes                                                          (980,000)
         Repurchase of common stock                                                                (66,000)
                                                                                             --------------
         Cash and cash equivalents at end of period                                            $11,696,000
                                                                                               ===========


As to MPC

         At December 31, 2000,  Magellan Petroleum  Corporation  ("MPC"),  on an
unconsolidated basis, had working capital of approximately $2.2 million and $1.5
million in marketable securities. MPC's annual operating budget is approximately
$700,000  and its  current  cash  position  and annual MPAL  dividend  should be
adequate to meet its current cash  requirements.  During  fiscal  2001,  MPC has
budgeted  approximately  $200,000  for oil and gas  exploration  compared to the
$54,000 expended during fiscal 2000.

         During November 2000,  MPAL paid a dividend of A.$.05 per share.  MPC's
share of this  dividend  was  approximately  $621,000,  which  was  added to its
working capital.

          On December 8, 2000, the Company  announced a stock repurchase plan to
purchase  up to one million  shares of the  Company's  common  stock in the open
market.  At December 31, 2000, the Company has purchased 67,000 of its shares at
a cost of approximately $66,000.

As to MPAL

         At December 31, 2000, MPAL had working capital of  approximately  $12.2
million. MPAL has budgeted  approximately $3 million for specific exploration in
fiscal 2001 as compared to the $2 million expended during fiscal 2000.  However,
the total amount to be expended  may be as much as $6 million  depending on when
the various projects reach the drilling phase. The current composition of MPAL's
oil and gas reserves  are such that the  Company's  future  revenues in the long
term are expected to be derived from the sale of gas in Australia.





Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

         Three months ended December 31, 2000 vs. December 31, 1999.

         The components of consolidated net income (loss) for the comparable
periods were as follows:

                                                                                 Three months ended
                                                                                    December 31,
                                                                           2000                       1999

                                                                                               
MPC unconsolidated pretax loss                                           $(186,225)                  $(195,741)
MPC income tax expense                                                           -                    (113,990)
Share of MPAL pretax income                                                222,545                     310,536
Share of MPAL income tax (provision) benefit                               (58,123)                    328,632
                                                                       ------------                  ---------
Consolidated net income (loss)                                         $   (21,803)                  $ 329,437
                                                                       ============                  =========
Net income (loss) per share (basic & diluted)                              $ -                       $ .01
                                                                           ====                      ======


                                    Revenues

          Oil sales  increased by 7% in the current  quarter to $1,310,000  from
$1,221,000  in 1999 because of a 55% increase in oil prices which was  partially
offset by the 17% Australian  foreign exchange rate decrease discussed below and
the 2% decrease in the number of units sold.  Unit oil sales are expected to
continue to decline unless additional development wells are drilled to  maintain
production  levels. A gas injection  project is currently in progress to enhance
oil  recovery.  MPAL is dependent on the operator  (65% control) of the Mereenie
field to maintain  production.  Oil unit sales (before  deducting  royalties) in
barrels  ("bbls")  and the  average  price per barrel  sold  during the  periods
indicated were as follows:

                                                        Three months ended December 31,
                                           2000 Sales                                     1999 Sales
                                                    Average price                                  Average price
                                 bbls                  per bbl                  bbls                  per bbl
                                 ----                  -------                  ----                  -------
                                                                                           
Australia-Mereenie                47,112               A.$56.20                  48,243              A.$36.23


         Gas sales  decreased 30% to $2,067,000 in 2000 from  $2,936,000 in 1999
because of the 15%  decrease  in the  volume of gas sold and the 17%  Australian
foreign  exchange rate decrease  discussed  below which was partially  offset by
increased  prices (up an average 1%). The volumes in billion  cubic feet ("bcf")
(before  deducting  royalties)  and the average price of gas per thousand  cubic
feet ("mcf") sold during the periods indicated were as follows:






Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

                                                           Three months ended December 31,
                                                2000 Sales                                 1999 Sales
                                                        Average price                              Average price
                                       bcf                 per mcf                bcf                 per mcf
                                       ---                 -------                ---                 -------
Australia:                                                  (A.$)                                      (A.$)
Palm Valley
                                                                                           
  Alice Springs contract                .287                3.14                   .278                2.97
  Darwin contract                       .520                2.07                   .560                2.02
Mereenie:
  Darwin contract                       .891                2.60                   .681                2.31
  Other                                 .019                3.37                   .500                3.08
                                      -------                                    -------
       Total                           1.717                                      2.019
                                       =====                                      =====


         Other  production  related  revenues  decreased 28% to $202,000 in 2000
compared to $280,000 in 1999. The reason for this decrease was that MPAL's share
of gas pipeline  tariffs  decreased to $181,000 in 2000  compared to $261,000 in
1999 because gas sales decreased.

         Interest  income  increased  32% to $244,000  in 2000 from  $185,000 in
1999.  The  increase  in  interest  income  is the  result of  additional  funds
available for investment and higher interest rates  partially  offset by the
17% Australian foreign exchange rate decrease as discussed below.

                               Costs and Expenses

         Production costs decreased 21% in 2000 to $1,081,000 from $1,376,000 in
1999  period  primarily  because of the 17%  Australian  foreign  exchange  rate
decrease discussed below.

         Exploration  and dry hole costs totaled  $1,077,000 in 2000 compared to
$854,000 in 1999.  The 2000 and 1999 costs  related  primarily to the work being
performed on MPAL's offshore Western Australia  properties.  The cost ($336,000)
of the Ealing - 1 exploration well in New Zealand, which was a dry hole, is also
included in the 2000 period.

         Salaries and employee  benefits  increased 11% from $376,000 in 1999 to
$431,000 in 2000. The increase in salaries relates primarily to the President of
MPC becoming a paid employee instead of a consultant  effective  January 1, 2000
The  Australian  foreign  exchange  rate  decreased  17% during the 2000  period
discussed below and partially offset the increase.






Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

         Depletion,  depreciation and amortization decreased 47% from $1,215,000
in 1999 to $644,000 in 2000  because of the  decrease in oil and gas  production
and the 17% decrease in the Australian exchange rate discussed below.

          Auditing,  accounting and legal expenses decreased 26% from $74,000 in
1999 to $55,000 in 2000. Effective January 1, 2000 the President of MPC became a
paid  employee  instead of a  consultant  which  reduced the amount of auditing,
accounting  and legal  expenses.  In  addition,  there was a 17% decrease in the
Australian exchange rate discussed below.

         Shareholder  communications  decreased  14%  from  $107,000  in 1999 to
$93,000 in 2000 because of cost saving  measures  implemented  to reduce mailing
and printing costs.

          Other administrative expenses were approximately the same during the
periods: $193,000 in 2000 and $192,000 in 1999.

                                  Income Taxes

          Income tax expense increased in 2000 to $114,000 from a tax benefit of
$531,000 in 1999. The components of income tax expense (benefit) between MPC and
MPAL were as follows:

                                                                           2000                         1999
                                                                           ----                         ----
                                                                                                 
Pretax consolidated income                                                $    249                     $   413
Losses not recognized:
   MPC's operations                                                            186                         196
   MPAL's foreign operations                                                     7                          12
Permanent differences                                                         (106)                       (410)
                                                                         ----------                  ----------
Book taxable income                                                      $      336                 $       211
                                                                         ==========                 ===========

Australian tax rate                                                             34%                         36%
                                                                      =============               =============

Australian income tax provision (benefit)                               $       114                  $       76
Australian income tax benefit from rate change                                    -                        (721)
MPC income tax                                                                    -                         114
                                                                     --------------                ------------
Consolidated income tax provision (benefit)                             $       114                 $      (531)
                                                                        ===========                 ============

Effective tax rate                                                              46%                       (129%)
                                                                                ===                       ======








Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

                                 Exchange Effect

         The  value  of  the  Australian  dollar  relative  to the  U.S.  dollar
increased  to $.5588  at  December  31,  2000  compared  to a value of $.5427 at
September 30, 2000. This resulted in a $489,000  credit to the foreign  currency
translation  adjustments  account for the three months ended  December 31, 2000.
The average exchange rate used to translate  MPAL's  operations in Australia was
$.5330 for the quarter ended December 31, 2000, which is a 17% decrease from the
$.6438 rate for the quarter ended December 31, 1999.

Six month period ended December 31, 2000 vs. December 31, 1999.

         The components of consolidated net income (loss) for the comparable
periods were as follows:

                                                                                  Six months ended
                                                                                    December 31,
                                                                           2000                       1999

                                                                                               
MPC unconsolidated pretax loss                                           $(359,021)                  $(393,266)
MPC income tax expense                                                           -                    (113,990)
Share of MPAL pretax income                                              1,030,969                     767,463
Share of MPAL income tax (provision) benefit                              (302,901)                    212,558
                                                                        -----------                -----------
Consolidated net income                                                  $ 369,047                   $ 472,765
                                                                         =========                   =========

Net income per share (basic & diluted)                                    $ .01                      $ .02
                                                                          ======                     =====


                                    Revenues

          Oil sales  increased by 23% in the current  period to $2,499,000  from
$2,033,000  in 1999 because of a 68% increase in oil prices which was  partially
offset by the 14% Australian  foreign  exchange  decrease as discussed below and
the 11% decrease in the number of units sold. Unit oil sales are expected to
continue to decline unless additional development wells are drilled to maintain
production  levels. A gas injection  project is currently in progress to enhance
oil  recovery.  MPAL is dependent on the operator  (65% control) of the Mereenie
field to maintain production. Oil unit sales in barrels ("bbls") and the average
price per barrel sold during the periods indicated were as follows:





Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)





                                                             Six months ended December 31,
                                                     2000 Sales                           1999 Sales
                                              -----------------------                -----------------------
                                                      Average price                               Average price
                                    bbls                 per bbl                 bbls                per bbl
                                    ----                 -------                 ----                -------
                                                                                           
Australia-Mereenie                   86,204             A.$56.88                  97,338             A.$33.89


         Gas sales  decreased 21% to $4,226,000 in 2000 from  $5,381,000 in 1999
because of the 14% Australian foreign exchange decrease discussed below and a 9%
decrease  in the  volume of gas sold  which was  partially  offset by  increased
prices (up an average  2%).  Total gas volumes are expected to continue at least
at current  levels in the short term. The volumes in billion cubic feet ("bcf"),
(before  deducting  royalties)  and the average price of gas per thousand  cubic
feet ("mcf") sold during the periods indicated were as follows:

                                                            Six months ended December 31,
                                           2000 Sales                                       1999 Sales
                                      --------------------                             -------------------
                                                        Average price                              Average price
                                       Bcf                 per mcf                bcf                 Per mcf
                                       ---                 -------                ---                 -------
Australia:                                                  (A.$)                                      (A.$)
Palm Valley
                                                                                           
  Alice Springs contract                .567                3.09                   .569                2.95
  Darwin contract                      1.031                2.05                  1.134                2.02
Mereenie:
  Darwin contact                       1.495                2.47                  1.257                2.27
  Other                                 .327                3.18                   .792                3.03
                                       -----                                      -----
       Total                           3.420                                      3.752
                                       =====                                      =====



         Other  production  related  revenues  decreased  1% to $465,000 in 2000
compared to $468,000 in 1999.

         Interest income  increased 35% in 2000. The increase in interest income
from  $370,000  in 1999 to $500,000  in 2000 is the result of  additional  funds
available for investment and higher interest rates  partially  offset by the 14%
Australian foreign exchange decrease as discussed below.

                               Costs and Expenses

         Production costs decreased 18% in 2000 to $1,925,000 from $2,341,000 in
1999 primarily because of the 14% Australian foreign exchange decrease discussed
below.





Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)

         Exploration  and dry hole costs totaled  $1,209,000 in 2000 compared to
$1,134,000 in 1999. The 2000 and 1999 costs related  primarily to the work being
performed on MPAL's offshore Western Australian properties.  The cost ($336,000)
of the Ealing - 1 exploration well in New Zealand, which was a dry hole, is also
included in the 2000 period.

         Salaries and employee benefits decreased 14% from $1,017,000 in 1999 to
$873,000 in 2000.  During 1999,  MPAL's General Manager retired and received the
balance of his unpaid  salary of $228,000  under his  employment  contract.  The
Australian  foreign  exchange rate also  decreased 14% during the 2000 period as
discussed  below.  The decrease was partially  offset by an increase in salaries
related to the President of MPC becoming a paid employee instead of a consultant
effective January 1, 2000.

         Depletion,  depreciation and amortization decreased 29% from $1,848,000
in 1999 to $1,318,000 in 2000 because of the decrease in oil and gas  production
and the 14% decrease in the Australian exchange rate discussed below.

          Auditing, accounting and legal expenses decreased 32% from $231,000 in
1999 to $157,000 in 2000.  Effective January 1, 2000 the President of MPC became
a paid  employee  instead of a consultant  which reduced the amount of auditing,
accounting  and legal  expenses.  In  addition,  there was a 14% decrease in the
Australian exchange rate discussed below.

         Shareholder  communications  decreased 12% in 2000 to $121,000 compared
to  $139,000  in 1999  because of cost  saving  measures  implemented  to reduce
mailing and printing costs.

          Other administrative expenses were approximately the same between the
periods: $431,000 in 2000 and $429,000 in 1999.

                                  Income Taxes

          Income tax expense increased in 2000 to $592,000 from a tax benefit of
$303,000 in 1999. The components of income tax expense (benefit) between MPC and
MPAL were as follows:





Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations (Cont'd)


                                                                           2000                         1999
                                                                           ----                         ----
                                                                                                 
Pretax consolidated income                                              $    1,656                     $ 1,112
Losses not recognized:
   MPC's operations                                                            359                         393
   MPAL's foreign operations                                                    20                          31
Permanent differences                                                         (294)                       (692)
                                                                         ----------                  ----------
Book taxable income                                                      $    1,741                 $       844
                                                                         ==========                 ===========

Australian tax rate                                                             34%                         36%
                                                                      =============               =============

Australian income tax provision                                         $       592                 $       304
Australian income tax benefit from rate change                                    -                        (721)
MPC income tax                                                                    -                         114
                                                                     --------------                ------------
Consolidated income tax provision (benefit)                             $       592                 $      (303)
                                                                        ===========                 ============

Effective tax rate                                                              36%                        (27%)
                                                                                ===                        =====




                                 Exchange Effect

         The  value  of  the  Australian  dollar  relative  to the  U.S.  dollar
decreased to $.5588 at December  31, 2000  compared to a value of $.5968 at June
30,  2000.  This  resulted  in a  $1,253,000  charge  to  the  foreign  currency
translation  adjustments account for the six months ended December 31, 2000. The
6% decrease in the value of the Australian  dollar  decreased the reported asset
and liability amounts in the balance at December 31, 2000 from the June 30, 2000
amounts.  The average  exchange  rate used to  translate  MPAL's  operations  in
Australia was $.5532 for the six months ended December 31, 2000,  which is a 14%
decrease from the $.6470 rate for the six months ended December 31, 1999.






Item 3.       Quantitative and Qualitative Disclosure About Market Risk

         The Company does not have any significant exposure to market risk other
than as previously discussed regarding foreign currency risk, as the only market
sensitive instruments are its investments in marketable securities.  At December
31, 2000, the carrying value of such investments  (including those classified as
cash and cash equivalents) was approximately  $14.2 million,  which approximates
the  fair  value  of the  securities.  Since  the  Company  expects  to hold the
investments to maturity, the maturity value should be realized.





                           PART II - OTHER INFORMATION

                         MAGELLAN PETROLEUM CORPORATION

                                December 31, 2000


Item 4.           Submission of Matters to a Vote of Security Holders.

                  (a)      On December 4, 2000, the Company held its 2000 Annual
General Meeting of Stockholders.

                  (b)      The following directors were elected as directors of
the Company. The vote was as follows:


                                                  Shares                                   Stockholders
                                        For                 Withheld                For                 Withheld
                                                                                                 
Hedley Howard                          21,142,100             1,243,865              2,002                   380
Donald V. Basso                        21,141,271             1,244,694              2,041                   341


                  (c) The  firm  of  Ernst & Young  LLP,  was  appointed  as the
Company's  independent  auditors for the year ending June 30, 2001. The vote was
as follows:


                                                      Shares                               Stockholders
                                                                                           
For                                                    21,704,643                                2,234
Against                                                   513,763                                   80
Abstain                                                   167,559                                   68



                  (d) The  proposal to increase the  authorized  common stock of
the Company from 50,000,000 shares to 200,000,000 shares was approved. The vote
was as follows:

                                                      Shares                               Stockholders
                                                                                           
For                                                    18,986,738                                1,814
Against                                                 3,116,779                                  435
Abstain                                                   282,448                                  133


Item 5.           Other Information.

                  All of the planned  seismic  surveys have been  completed  for
MPAL's offshore permit in Western Australia.

          In late September  2000,  MPAL acquired a 30% interest in two licenses
in southern  England.  The two licenses;  PEDL 098 in the Isle of Wight and PEDL
099 in the Portsdown area of Hampshire,  were formally  granted in December 2000
for a period of six years.
          During November 2000, MPAL reported that the Ealing-1 exploration well
in the Canterbury  Basin of New Zealand was plugged and  abandoned.  MPAL funded
the cost  ($336,000) of 20% of the well.  MPAL expects to reduce its interest in
the project to 12%.

          On  February  6,  2001,  the  presentation  of  the  evidence  in  the
Kotaneelee  trial in the  Queens  Bench of  Alberta,  Canada  ended.  A  written
decision from the trial court is not expected before the end of 2001.

          MPAL holds a 50% interest in two blocks CO 1998-I and CO 1998-J in the
Cooper Basin of South  Australia.  MPAL expects to receive formal permits in the
near future since an  agreement in principle  has been reached with the National
Title Claimants on the blocks.  Subject to the early grant of the permits,  MPAL
plans to commence drilling in the second quarter of the year 2001.


Item 6.           Exhibits and Reports on Form 8-K

          (a)     Exhibits

                  3.       Articles of Incorporation and By-Laws.
                           -------------------------------------

                  (a)      Certificate  of Amendment of Restated  Certificate of
                           Incorporation  as filed on December 26, 2000 with the
                           State of Delaware is filed herein.

          (b)     Reports on Form 8-K

                 On December 8, 2000, the Company filed a Current Report on Form
8-K to report that the Company  announced a stock repurchase plan to purchase up
to one million shares of the Company's common stock in the open market.












                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized:






                                                  MAGELLAN PETROLEUM CORPORATION
                                                           Registrant





Date:  February 13, 2001           By /s/ James R. Joyce
                                   ---------------------------------------------
                                          James R. Joyce, President and
                                          Chief Financial and Accounting Officer






                                INDEX TO EXHIBITS


3.       Articles of Incorporation and By-Laws.
         -------------------------------------

         Certificate of Amendment of Restated Certificate of Incorporation filed
December 26, 2000.