england, page-2

Hi Fred

This is great news for Key and the proposed drilling at Lidsay.

Markham Woods is only about 15 klm away from Lidsay. Magellan Petroleum are involved in this new discovery.

For quite some time I have considered that Key had it up their sleeve to farm into some of the Magellan leases (100%) surrounding Brockham. The delays in drilling and cashflow problems experienced by Key put that all on the backburner. It could still happen if Key's Lidsay drilling is successful but possibly now at a higher price to Key.

The attached map will give an idea of these well locations.

http://www.magellanpetroleum.com/PhotoGallery/AlbumView.asp?GalleryID=4