Magellan Petroleum Announces Weekly Drilling Report Cabbots-1 – Cooper Basin SA

Magellan Petroleum Corporation (Nasdaq: MPET – News; ASX: MGN – News; “Magellan”) announced that its 100% owned subsidiary, Magellan Petroleum Australia Limited (“MPAL”) advises the following drilling report. The Cabbots-1 exploration well spudded in PEL 107 at 09:00 hrs (CST) on December 5, 2006. At 06:00 hrs (CST) on December 13, the well was at a depth of 2,248 meters and drilling ahead in the Patchawarra Formation.

The Cabbots-1 exploration well is located in PEL 107 and the well is planned to a Total Depth of 2,440 meters with the primary objective being oil in the Patchawarra Formation. The Cabbots Prospect is a lower Patchawarra on-lap oil play, with a four way dip closure.

Magellan is participating in the well under a farmin arrangement with Great Artesian Oil and Gas and will earn a 30 percent interest in any commercial discovery. On completion of the funding of this well, Magellan will become a 20 percent participating interest holder in the PEL 107 joint

venture and permit.

Cabbots-1 Details:

Petroleum Title: PEL 107, South Australia Location: Approximately 7 km east, southeast of the Tantanna and Taloola oil fields Coordinates: Latitude: 28 degrees 11′ 22.14″ South Longitude: 139 degrees 40′ 37.42″ East (GDA 94) JV Operator: Beach Petroleum Ltd Drilling Rig: Century Rig 3 Proposed Total Depth: 2,440 meters RT Objectives: Primary – Patchawarra Formation Secondary – Poolowanna Formation, Tirrawarra Sandstone Operations for period: Cabbots-1 spudded at 09:00 hrs (CST) on December 5, 2006 and at 06:00 hrs on December 13, (CST) was at a depth of 2,248 meters RT.

Progress for Period: 1,727 meters.

Participants in Cabbots-1 are:

Magellan Petroleum Corporation 30.0 percent * Beach Petroleum Limited (Operator) 40.0 percent

Great Artesian Oil and Gas Limited 30.0 percent

(* subject to a farmin arrangement with Great Artesian)

Magellan will issue routine weekly drilling reports during its 2006 Cooper Basin drilling program.

Forward Looking Statements

Statements in this release which are not historical in nature are intended to be, and are hereby identified as, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. These statements about Magellan and MPAL may relate to their businesses and prospects, revenues, expenses, operating cash flows, and other matters that involve a number of uncertainties that may cause actual results to differ materially from expectations. Among these risks and uncertainties are the extent of the recoverable reserves at those properties and the risk that any wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. Any forward-looking information provided in this release should be considered with these factors in mind. Magellan assumes no obligation to update any forward- looking statements contained in this release, whether as a result of new information, future events or otherwise.

Source: Magellan Petroleum Corporation