Building Shareholder Returns byMaximizing the Potential of Currently Held Assets

NASDAQ: MPET

July 2012

Forward Looking Statements

This presentation contains forward-looking statements that involve risks and uncertainties. Our forward-looking statements express our current expectations or forecasts of possible future results or events, including projections of future performance, statements of management’s plans and objectives, future contracts, and forecasts of trends and other matters. Forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as may be required by securities laws You can identify these statements by the fact that they do not relate strictly to historic or current facts and often use wordsrequired by securities laws. You can identify these statements by the fact that they do not relate strictly to historic or current facts and often use words such as “anticipate”, “estimate”, “expect”, “believe”, “will”, “outlook”, “project”, and other words and expressions of similar meaning. No assurance can be given that the results expressed or implied by any forward-looking statements will be achieved, and actual results could be affected by one or more factors, which could cause them to differ materially. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Among these risks and uncertainties are: (1) the ability of Magellan to fully realize the expected benefits from the asset swap with Santos in the A d B i d th l t d l t (2) h th th C f ll hi t i hil d li iAmadeus Basin and the related gas sales agreement; (2) whether the Company can successfully achieve cost savings while delivering revenue growth; (3) whether the workovers, recompletions, and other drilling at Poplar will result in increased production and cash generation and/or will otherwise successfully assist in the development of Poplar; (4) whether a CO2 enhanced recovery program in the Charles formation will be viable; and (5) the production levels from the properties in which Magellan, through its subsidiaries, have interests, the recoverable reserves at those properties, and the prices that will ultimately be applied to the sale of such reserves. For a more complete discussion of the risk factors that may apply to any forward looking statements, you are directed to the Risk Factors section of the Company’s Form 10-K for the year ended June 30, 2011 and subsequent form 10-Q’s. Any forward-looking information provided in this presentation should be considered with these factors in mind. Althoughsubsequent form 10 Q s. Any forward looking information provided in this presentation should be considered with these factors in mind. Although Magellan may from time to time voluntarily update its prior forward looking statements, Magellan assumes no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise, except as may be required by securities laws.

Reserves

The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves. We may use in this presentation the term "reserves" or "potential reserves" in connection with quantities of oil and natural gas that we cannot include in our SEC filings. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations (subject to other conditions). Potential reserves are our internal estimates of quantities of oil and natural gas that are potentially recoverable. Quantities of reserves and potential reserves are by their nature significantly more uncertain than proved probable and possible reserves and accordingly are subject to substantially greater risk

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are by their nature significantly more uncertain than proved, probable, and possible reserves, and accordingly are subject to substantially greater risk of not actually being realized by Magellan.

Magellan Is…

…executing a turnaround strategy focused on maximizing the value of…executing a turnaround strategy focused on maximizing the value of existing oil and gas assets in the United States, Australia, and the United Kingdom

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Investment Considerations

Pro forma cash and equivalents of approximately $45 million

More than 10 MMBoe net proved reserves $ 61 mMore than 10 MMBoe net proved reserves

Several near-term opportunities to significantly increase reserves

22 000 net unitized acres covering PoplarAdj (2)

$ 45 m

22,000 net unitized acres covering Poplar Dome, the largest geologic structure in the western Williston Basin, Montana

Rationalization of Australian natural gas assets ggenerates long-term stable revenue with potential upside

Long-term potential from onshore UK and off-h A t li j t

Cash,31 Mar (2)

shore Australia projects

Lower fixed operating costs in FY131; most capex discretionary Market cap

(25 Jul, $1.14/sh)Cash

($0.83/sh)

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Experienced management team

1. June 30 fiscal year end.2. Cash includes Santos asset swap proceeds. Transaction adjustments received in Q4 FY12.

Turnaround Leadership

Robin West (65) – Chairman Founder, CEO of PFC Energy Former Reagan Administration Assistant

Tom Wilson (60) – CEO Former President of KMOC and Anderman

InternationalFormer Reagan Administration Assistant Secretary of the Interior (1981-83), responsible for U.S. offshore oil policy

Member of National Petroleum Council and Council on Foreign Relations

Former First Vice President and director of Young Energy Prize

Previously, led new international strategy for Apache and served as a ProjectCouncil on Foreign Relations

Director of Key Energy Services and formerly of Cheniere Energy

for Apache and served as a Project Manager for Shell Oil

Randy Pharo (59) – General Counsel & Secretary

Former General Counsel of SM Energy

Antoine Lafargue (37) – CFO Former CFO of Falcon Gas Storage based

in Houston, TX gy Member of management team that grew

SM market cap. from ~$120 m to ~$4 bn Over 32 years of in-house and outside

counsel oil and gas legal experience

, Previously, a principal with Arcapita, a

private equity fund focused on the energy and infrastructure sectors

Previously held investment banking

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counsel oil and gas legal experience Previously held investment banking positions with DLJ/Credit Suisse and Bank of America

Poplar

22,000 net unitized acres covering largest geologiclargest geologic structure in western Williston Basin

Substantially all Substantially all acreage held by production, and capex is mainlycapex is mainly discretionary

Bakken Play is i t tmoving west to

Poplar

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Poplar

Judith River Shallow gas opportunity

Greenhorn Oil potential – similar to Eagleford play

AmsdenAmsden New oil pool discovery Jan 12 First well in development

Tyler 4 current wells Additional potential

Charles 250 bbls/day CO2-EOR: pilot project in FY13

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CO2 EOR: pilot project in FY13

Several reserve development opportunities

Poplar – VAALCO Farm-Out

VAALCO farm-out in Sep 2011 to explore and develop deeper formations at Poplar

100% f 3 ll i l d 2012– 100% carry for 3 wells in calendar 2012– 35% interest in all wells to Magellan

Objective and rationale: Objective and rationale:– Prove up reserves and value of deeper formations of Poplar, with

limited capital exposure through the exploration phase– Remain focused on Charles and shallower formations– Benefit from VAALCO’s horizontal well drilling expertise

Timing: Timing: – First well drilled in Q1 and completion operations will be completed by

July - preliminary results encouraging

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– Second well commenced as a horizontal well to test Bakken/Three Forks in June 2012

Poplar – CO2 Enhanced Oil Recovery

Evidence points to Charles formation being a prime candidate for CO2enhanced oil recovery program

Offers the potential to increase reserves from current 10 MMbbls to 40 to 60 MMbbls

Initial miscibility tests confirm oil from Charles formation has requisite y qmiscibility for successful CO2 enhancement

Project assessment milestones:

– Laboratory tests ongoing until July 2012

– Physical injectivity test in May 2012

5 ll il t j t t t t i FY13– 5 well pilot project to start in FY13

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Potential additional proved reserves of 30 to 50 MMbbls

Australian Onshore Assets

Palm Valley 145 km SW of Alice Springs 11 Bcf of proved gas reserves and

14 Bcf of probable gas reserves ~$100 m revenue contract over 17

years with price upside 100% owner / operator 100% owner / operator Connected to Darwin pipeline

Dingo 65 km south of Alice Springs Material gas resource 3 appraisal wells (’84 and ’90) 100% owner / operator Marketing gas to mining industry

Mereenie

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Mereenie Opportunity to earn up to A$17.5

million in bonus payments from Santos

Longer Term: Bonaparte Basin

NT/P82 Long term development

opportunity Potential reserves of ~3

Tcf 100% held exploration

blockblock 3D seismic survey to be

conducted in Q1 FY13 1 exploration well by e p o at o e by

2015

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Longer Term: UK Shale

Northern operated (22.5% – 40%) Markwells Wood – production

test ongoing

240,000 net acres – 12 licenses

Several drilling prospects identified

PEDL 240 (Isle of Wight) –Wytch Farm extension playWytch Farm extension play

Celtique operated (50%) Acquired 175 km 2D seismic inAcquired 175 km 2D seismic in

July 2011 Conventional plays: shallow oil

and deep gas Unconventional plays: Shale oil

and gas potential in Liassic and Kimmeridge shales

Magellan operated : 3 licenses, 100% WI

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Magellan operated (100%) Deep gas potential at Horse Hill

Celtique operated : 4 licenses, 50% WINorthern operated : 5 licenses, 22.5%-40% WI

Historical Financials1

28.5

Revenue Net income (loss) EBITDAX

18.2

11.7 11.7

(1.4)

(8.2)(4.8)

(7.5)

$ m

(32.4)

ProductionOil (Mbbls) 139 123 99Gas (Bcf) 3 4 0 7 0 4

FY10 FY11 March 2012 YTD

121. June 30 fiscal year end.2. See Appendix: EBITDAX Reconciliation for reconciliation to net income and for further information on EBITDAX.

Gas (Bcf) 3.4 0.7 0.4Total (Mboe) 711 241 166boepd 1,947 661 606

Operational MilestonesMilestone FY2013 FY2014

Sep Dec Mar Jun

Poplar

Charles infill – EPU 119 and others

Amsden – EPU 117 testing

VAALCO – three test wells

CO2-EOR – laboratory testing

CO2-EOR – pilot

Australia

Palm Valley – new gas contracts

Dingo – develop marketing strategy

NT/P82 – 3D seismic

UK

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Markwells Wood – production testing

Unconventional – assessment

Poised for Improved Cash Flow

12-Month revenue enhancement opportunities

Replacement gas contracts for Palm Valley

Increased Charles production

Amsden potential production

VAALCO potential production

12-Month operating cost savings

Lower Palm Valley operating costs

Eli i t d M i ti t Eliminated Mereenie operating costs

Reduced G&A expenses

Australian stock exchange listing expenses

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Australian stock exchange listing expenses

Appendix

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EBITDAX Reconciliation

EBITDAX: Non-GAAP financial measure and reconciliation to net income (loss)

Fiscal Years Ended June 30, Nine Months Ended March 31,2011 2010 2012 2011

(In thousands)(In thousands)Net (loss) attributable to Magellan $ (32,432) $ (1,446) $ (8,207) $ (5,560)Depletion, depreciation, amortization, and accretion expense 2,890 5,428 1,242 1,694 Exploration expense 2,854 1,273 3,619 1,481 Stock-based compensation expense 1,670 6,582 1,282 1,812 Foreign transaction loss (gain) 951 677 (1,045) 606 Impairment expense 173 2 050 - 123Impairment expense 173 2,050 123 Loss on Evans Shoal 15,893 - - - (Gain) on sale of assets (969) (6,817) (4,029) (954)Warrant expense - 4,276 - - Net interest (income) (923) - (357) (659)Other (income) - (3,013) (5) - Income tax provision (benefit) 5 141 2 646 - (1 502)

We define EBITDAX as net (loss) attributable to Magellan, plus (1) depletion, depreciation, amortization, and accretion expense, (2) exploration expense, (3) stock based compensation expense, (4) foreign transaction loss (gain), (5) impairment expense, (6) loss on Evans Shoal, (7) (gain) on

l f t (8) t (9) t i t t (i ) (10) th (i ) (11) i t i i (b fit) d (12) t (i ) l

Income tax provision (benefit) 5,141 2,646 (1,502)Net (income) loss attributable to non-controlling interest in subsidiaries (5) 11 (15) (16)EBITDAX $ (4,757) $ 11,667 $ (7,515) $ (2,974)

sale of assets, (8) warrant expense, (9) net interest (income), (10) other (income), (11) income tax provision (benefit), and (12) net (income) loss attributable to non-controlling interest in subsidiaries. EBITDAX is not a measure of net income or cash flow as determined by GAAP, and excludes certain items that we believe affect the comparability of operating results.

Our EBITDAX measure provides additional information which may be used to better understand our operations. EBITDAX is one of several metrics that we use as a supplemental financial measurement in the evaluation of our business and should not be considered as an alternative to, or more meaningful than, net income (loss) as an indicator of our operating performance. Certain items excluded from EBITDAX are significant components in

d t di d i ' fi i l f h th hi t i t f d i bl d d l t bl t EBITDAX d

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understanding and assessing a company's financial performance, such as the historic cost of depreciable and depletable assets. EBITDAX, as used by us, may not be comparable to similarly titled measures reported by other companies. We believe that EBITDAX is a widely followed measure of operating performance and is one of many metrics used by our management team and by other users of our consolidated financial statements. For example, EBITDAX can be used to assess our operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of our assets and our company without regard to historical cost basis and items affecting the comparability of period to period operating results.