UPDATE 1-Magellan Petroleum explores methanol plant in Australia

* Signs agreement with unnamed methanol producer * Shares rise 4 pct in morning trade

July 13 (Reuters) - Magellan Petroleum Corp (MPET.O) said its Australian unit signed an agreement with an unnamed methanol producer to study the feasibility of building a methanol plant.

The company said under the agreement, it will identify natural gas reserves suitable to supply the proposed plant, which may come up in Darwin, Northern Territory, Australia.

"Magellan would also have exclusive rights to supply natural gas to the plant from a broad exclusivity area that the parties have established to encompass both onshore and offshore areas in the Northern Territory and Western Australia," Magellan said in a statement.

Shares of Magellan were up 4 percent at $1 in morning trade on Nasdaq.

For the alerts, double click [ID:nWNAB6530] (Reporting by Arup Roychoudhury in Bangalore; Editing by Gopakumar Warrier) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))