Magellan Petroleum Updates Horse Hill-1 Well: Revised Up P50 Est. Of OOIP To 5.2 MMbls

Corporation

("Magellan" or the "Company") today announced that its partners in the Horse Hill-1 well ("HH-1") in southern England have reported a conventional discovery in the Upper Portland sandstone and have materially revised upward their P50 estimate of original oil in place (OOIP) in this section to 5.2 MMbbls. More importantly, HH-1 has confirmed that the Upper Jurassic section is thermally mature and contains two thick limestone intervals that may act as conventional reservoirs for a significant oil play in the Weald Basin. Magellan and its partners have reached these conclusions after analysis of detailed log data, and more data will be available in the near future. J. Thomas Wilson, President and CEO of Magellan, commented: "We are encouraged by the oil potential of the Portland Sandstone. What might be even more encouraging is the data within the Upper Jurassic confirming that this section is within the oil window. The Kimmeridge Clay has always been known to be a world class source rock. Now we have evidence that it is mature and generating oil at Horse Hill, and we believe this will be the case over a significant portion of the Weald Basin, particularly in the central Weald where the Company owns a substantial acreage position. It is our hope that this well, in conjunction with other recent tests, will start to confirm a major new conventional play in southern England. We look forward to updating our investors as more data becomes available." HH-1 will be put on a production test from the Portland Sandstone section in 2015 pending regulatory applications. Pursuant to a farmout agreement executed in December 2013, Magellan owns a 35% working interest in the HH-1 well and is being carried for its share of well costs through testing and completion.