Magellan Petroleum Corporation (MPC) is engaged in the sale of oil and gas, as well as in the exploration for, and development of, oil and gas reserves. As of June 30, 2004, MPC's principal asset was a 55.06% equity interest in its subsidiary, Magellan Petroleum Australia Limited (MPAL). MPAL's major assets are two petroleum production leases covering the Mergence oil and gas field (35% working interest) and one petroleum production lease covering the Palm Valley gas field (52% working interest). Both fields are located in the Amadeus Basin in the Northern Territory of Australia. Santos Ltd. owns a 48% interest in the Palm Valley field, a 65% interest in the Mergence field and 18.2% of MPAL's outstanding stock. Origin Energy Limited owned 17.1% of MPAL's outstanding stock as of June 30, 2004. In July 2004, MPAL reached an agreement with Voyager Energy Limited for the purchase of its 40.97% working interest (38.7% net revenue interest) in its Nockatunga assets in southwest Queensland.