Magellan Petroleum Corporation provided updates on several of its projects.
Magellan has completed a detailed reservoir engineering study using data from the CO2-enhanced oil recovery pilot, and with the results of that study has estimated that approximately 80 to 100 MMboe may be recoverable from the B-1 and B-2 zones of the Charles formation at Poplar using the CO2-EOR technique over approximately 40 years. This estimate, which does not constitute reserves as defined by the SEC, is approximately double the amount of previous estimates.
J. Thomas Wilson, President and CEO of the Company, commented, 'The data now shows that Poplar is even larger than first thought in terms of the estimated amount of recoverable barrels of oil from CO2-EOR. We continue to work through the economics of this project, in particular the capital costs associated with full field development and the efficiency of the CO2 sweep across the formation to production wells. We believe that, subject to finalizing our economic evaluation, a project of this magnitude and duration should be economic even in the current oil price environment.'