Magellan Petroleum Announces Potential Acquisition Of CO2 Source

(RTTNews) - Magellan Petroleum Corp. (MPET) Wednesday said it has, through an affiliated entity, acquired an option to acquire a large CO2 reservoir called Farnham Dome located in Carbon County, Utah.

Following the agreement, the seller, Savoy Energy, LLC, has granted Magellan the right to purchase the field outright or purchase uncontracted CO2 at a fixed price. The option will expire on March 31, 2015, unless extended.

Since August, the company has been injecting CO2 into the B-2 zone of the Charles formation at Poplar. In early October, Magellan opened the four pilot producer wells. The company expects to see increased oil production from these wells by the first quarter of 2015.

Magellan believes it will be able to quantify additional recoverable oil from the B-2 zone on a full field basis by June 2015.

Based on the results to date, Magellan anticipates that the CO2 will efficiently "sweep" the oil in place to the producer well bores and demonstrate the economic potential of CO2-EOR at Poplar.