Magellan Petroleum Corp (MPET) SEC Filing 10-K Annual report for the fiscal year ending Thursday, June 30, 2011

Exhibit 99.1

ARBN 117 452 454

MAGELLAN PETROLEUM CORPORATION REPORTS PRELIMINARY

YEAR END RESULTS FROM OPERATIONS, CHARGES FROM EVANS

SHOAL, AND UPDATES OPERATIONAL PLANS

For the Year Ended June 30, 2011

(Dollars quoted are US$)

Magellan Petroleum Corporation (“Company”) (NASDAQ: MPET) (ASX: MGN) is expecting to announce before filing its annual report several additional major transactions that will materially improve the Company’s operational position, strengthen its financial resources, and better enable the Company to exploit its assets to deliver value to shareholders.

These new contracts in both Australia and in the US should lead to augmented drilling programs, rationalisation of asset ownership interests and operations, a new gas sales arrangement, augmented cash balances and a workable plan to move the Company forward. They are intended as an offset valuation to the adjustments herein. Although accounting rules require us to write off Evans Shoal deposits and absorb certain other non-cash charges, we believe the Company will be in a much stronger position once all transactions are completed.

For the fiscal year ended June 30, 2011, the Company reports a consolidated net loss of $36.1 million, or $0.69 per share, on gross revenues of $18.2 million, as compared to a net loss of $1.5 million, or $0.03 per share, on gross revenues of $28.5 million in fiscal 2010. Of the $36.1 million loss balance, approximately $27.3 million is attributable to non-recurring, non-cash charges; $16.3 million relates to a write off of the initial “deposit” contributed by Magellan Petroleum Australia Limited (“MPAL”), the Company’s wholly owned subsidiary, in connection with the March 25, 2010 Asset Sales Deed, as amended by the Deed of Variation, between MPAL and Santos Offshore Pty Ltd. (“Asset Sales Deed”) which outlined the terms of MPAL’s contemplated purchase of Santos’ 40% interest in the Evans Shoal natural gas field (NT/P48) (“Evans Shoal Transaction”), $4.0 million relates to a non-cash charge to write off the goodwill related to the Company’s 2006 acquisition of the remaining interest in MPAL, $7.0 million is attributable to a non-cash charge related to a valuation allowance recognized as a reserve against MPAL’s deferred tax balances.

The writeoff of the “deposit” is the direct result of the parties’ inability to close the Evans Shoal Transaction on or before May 31, 2011 due to material changes to the Evans Shoal work program made by one of the other field owners.

In the United Kingdom, the operator of the Markwells Wood 1, Northern Petroleum, informs us that the completion rig for the well will be onsite in the late third quarter. An incremental testing program will be initiated after base work is completed allowing for the definition of several baselines of well performance for the oil pay noted in the well earlier this year.

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For further information, please contact:

Jeffrey G. Tounge, Manager, Investor Relations, (207) 619-8504