Magellan to drill in UK after farmout

Magellan Petroleum has secured a farmout agreement with UK partner Northern Petroleum who will fund 35% of the cost of drilling an exploration well to earn an interest in several Magellan onshore UK assets.

For its part in funding the exploration Northern will earn an 17.5% share in Petroleum Exploration and Development Licenses 098 and 113 on the Isle of Wight and a 5% interest in License 099 in the Portsdown area of southern England.

Magellan will hold 27.5% after the deal. The exploration well will target the middle Jurassic Great Oolite Formation of the Weald-Wessex Basins.