Magellan Petroleum Corporation Announces Third Quarter Earnings

For the nine-month period ended March 31, 2008, the Company reported a net loss of $7.6 million ($.18 per share) on $29.2 million in revenues, compared to net income of $1.3 million ($.03 per share) on revenues of $22.1 million in the prior period last year.

Magellan's president, Dan Samela said, "We are pleased with our operating results for this quarter and for the first nine months of fiscal 2008. We've been able to absorb a difficult ATO settlement of approximately (AUS) $14.6 million yet increase our working capital since June 30, 2007 by $4.2 million on the strength of our cash flow from operations. Total revenues are up 39% and 32% for the quarter and nine months, respectively over last year due mostly to the successful drilling campaign in the Nockatunga oil field. Pretax income for the year is up $4.6 million over last year."

Exploration and dry hole costs for the 2008 quarter are down $1.2 million over the 2007 quarter due to reduced exploration expenditures in the Cooper Basin.

Statements in this press release which are not historical in nature are intended to be, and are hereby identified as, forward looking statements for purposes of the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements. Among these risks and uncertainties are pricing and production levels from the properties in which the Company has interests, and the extent of the recoverable reserves at those properties. In addition, the Company has a large number of exploration permits and faces the risk that any wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. The Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Comparative, consolidated results for the three and nine-month periods are shown in the following consolidated statements of operations:

                        MAGELLAN PETROLEUM CORPORATION

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (unaudited)


                             THREE MONTHS ENDED        NINE MONTHS ENDED
                                  March 31,                March 31,
                             2008         2007         2008          2007
    REVENUES:
     Oil sales              $4,442,241   $2,305,562   $14,062,782   $8,458,469
     Gas sales               4,433,188    3,879,437    13,195,352   11,773,787
     Other production
      related revenues         660,634      663,624     1,973,843    1,853,616
     Total revenues          9,536,063    6,848,623    29,231,977   22,085,872

    COSTS AND EXPENSES:
     Production costs        1,801,975    1,535,250     6,425,232    5,132,656
     Exploration and
      dry hole costs           334,651    1,568,280     3,072,242    4,541,543
     Salaries and
      employee benefits        395,685      341,105     1,216,034    1,051,207
     Depletion, depreciation
      and amortization       2,914,218    2,267,722     8,871,864    7,032,541
     Auditing, accounting
      and legal services       215,394      114,106       773,497      438,115
     Accretion expense         180,461      136,883       526,849      403,062
     Shareholder
      communications            98,762      114,320       300,050      350,210
     Loss (gain) on sale of
      field equipment            3,209       (7,772)      (23,748)     (7,966)
     Other administrative
      expenses                 883,221      638,308     2,524,866    1,806,083
     Total costs and
      expenses               6,827,576    6,708,202    23,686,886   20,747,451
    Operating income         2,708,487      140,421     5,545,091    1,338,421
     Interest income           500,121      437,780     1,559,200    1,208,693
    Income before income
     taxes                   3,208,608      578,201     7,104,291    2,547,114
    Income tax provision    (1,520,165)    (292,274)  (14,698,801) (1,238,958)

    NET INCOME (LOSS)        1,688,443      285,927    (7,594,510)   1,308,156
    Average number of shares
     outstanding
     Basic                  41,500,325    41,500,325    41,500,325  41,500,325
     Diluted                41,500,325    41,500,325    41,500,325  41,500,325

    NET INCOME (LOSS)
     PER SHARE
     (BASIC AND DILUTED)         $0.04         $0.01        $(0.18)      $0.03

SOURCE Magellan Petroleum Corporation

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