Magellan Repurchases Options And Stock From Former Executive

Magellan Petroleum Corporation ("Magellan" or the "Company")

today announced that on October 10, 2014, the Company entered into an Options and Stock Purchase Agreement (the "Agreement") to repurchase 250,000 shares and options to acquire 1,512,500 shares of Magellan's common stock from William Hastings, the former president and chief executive officer of the Company. The gross proceeds payable to Mr. Hastings pursuant to the Agreement total $1,445,625 (the "Proceeds"). The Proceeds were calculated on the basis of an assumed price of $1.85 per common share, representing an 8% and 5% discount to the 10- and 30-day trailing volume-weighted average closing market price per common share, respectively. The options to be repurchased represent 56% of the total of 2,712,500 options previously granted to Mr. Hastings in December 2008 as part of his compensation as an executive of the Company (the "Options"). The Options, which are fully vested and have an exercise price of $1.20 per share, are scheduled to expire in December 2015. Following the repurchase, Mr. Hastings will still own 1,200,000 Options. Tom Wilson, President and Chief Executive Officer of the Company, commented: "This Agreement allows us to remove a substantial overhang on our stock created by the potentially dilutive impact of Mr. Hastings's stock options. Given the growth potential of our Company and its various projects, we believe the opportunity to repurchase such a large quantity of options and shares on the basis of a $1.85 share price represents great value for our other shareholders." Subject to certain conditions in the Agreement, the Company expects to make the payment of the Proceeds, net of applicable tax withholdings, on or before October 17, 2014.