HARTFORD, Conn., Aug. 4 /PRNewswire-FirstCall/ -- Magellan Petroleum
Corporation (Nasdaq: MPET) said that its 55-percent-held subsidiary, Magellan
Petroleum Australia Limited, made the following release to the Australian
Stock Exchange on August 4, 2005:

                             Announcement to ASX

                              Sandhills-2 Spuds
                    Weald Basin, Onshore Southern England

    Magellan Petroleum Australia Limited announces that the Sandhills-2 well
in PEDL 098 on the Isle of Wight in Southern England spudded at 03:00 hours
(GMT) on 1 August 2005.  As of 07:00 hours 3 August (GMT) the well was at a
depth of 381 metres BRT and drilling ahead in a 12-1/4" hole.
    The well is being operated by Northern Petroleum Plc and is expected to
take approximately 31 days to drill and evaluate. The Sandhills-2 drilling and
evaluation program provides for the acquisition of full hole core across the
upper part of the Great Oolite Formation target, a complete suite of wireline
logs and production testing of the target interval upon the completion of
drilling operations.

     Sandhills-2 Details:
     Petroleum Title:  PEDL 098
     Location:         Isle of Wight, Weald Basin, Southern England
     Coordinates:      Latitude: 00 Degrees 48' 45.98" South
                       Longitude: 002 Degrees 30' 57.06" East
     Drilling Rig:     BDF Rig 28
     Total Depth:      1,270 metres measured depth BRT
     Objective:        To test the significance and commerciality of untested
                       hydrocarbon shows intersected in the Jurassic Great
                       Oolite Formation of the Sandhills-1 well drilled by
                       British Gas in 1982.
     Week's progress:  381 metres.


    Participants in the Sandhills-2 well are:
     Magellan Petroleum Australia Limited          22.5%
     Northern Petroleum Plc                        57.5% (Operator)
     Oil Quest Resources Plc                        7.5%
     Black Rock Oil & Gas Plc                       5.0%
     Montrose Industries Ltd                        5.0%
     Oil & Gas Investments Ltd                      2.5%

    Magellan will issue operational information to the Australian Stock
Exchange weekly on Thursdays during the drilling of the Sandhills-2 well.

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