Magellan Petroleum Corporation (Magellan) announced that Australia’s Foreign Investment Review Board has indicated they have “no objection” to Magellan’s acquisition of Santos' 40 percent interest in the Evans Shoal natural gas field (NT/P48). The Evans Shoal field is very large with estimated contingent natural gas resource of between 6.5 and 8 tcf, including CO2 content and gas condensate resource totalling more than 30 million barrels.

                Evans Shoal was discovered in 1988.  It lies in a range of water depths from very shallow to more than 300 feet and has had three wells drilled. Subsequent drill stem testing flowed gas at a stabilized rate of 25 MMcf/d.The field contains a substantial quantity of CO2. CO2 is a significant feed component for the production of Methanol but can add cost to LNG development. The Evans Shoal acquisition could give Magellan and its partners a development opportunity with regard to Asia’s growing LNG and Methanol markets, the company said.