Magellan Petroleum Corporation, Portland, Maine, (Nasdaq: MPET) and Adelaide, Australia-based Santos Ltd. have now finalized discussions regarding an appropriate resolution of all remaining issues relating to the non-closure of the Evans Shoal transaction. The company and Santos have agreed that $10 million of the sums deposited in connection with the Evans Shoal transaction will be returned to the company and that the Asset Sale Deed should be terminated.

The process of unwinding the Evans Shoal transaction has allowed the company and Santos to look at their joint operations in the Northern Territory, Australia. This has lead to productive discussions towards rationalizing and more efficiently exploiting their respective interests in the Amadeus Basin, and creating new commercial opportunities. The company is working with Santos to satisfactorily conclude these discussions in the near term.