Magellan Receives Post-Completion Payment for Sale of Onshore Australia Assets
April 17 2014 - 6:00AM
Marketwired
Magellan Receives Post-Completion Payment for Sale of Onshore
Australia Assets
DENVER, CO--(Marketwired -
April 17, 2014) - Magellan Petroleum Corporation ("Magellan"
or the "Company") (NASDAQ: MPET)
announced today that on April 15, 2014, it received the final AUD
$5 million payment contemplated by the Share Sale and Purchase Deed
(the "Sale Deed") entered into with Central Petroleum Limited
("Central") (ASX: CTP) for the sale
of the Company's onshore Australia assets (the
"Transaction"). Previously, the Company announced the
completion of the Transaction on March 31, 2014.
In total, the Company has now received from Central AUD $20
million in cash and 39.5 million newly issued shares of Central
stock, equivalent to an approximate 11% ownership
interest. Magellan is now Central's single largest
shareholder. Based on the Central closing price on April 16,
2014, this stock represents a total value of AUD $20.9 million, or
a AUD $5.9 million increase over the issuance value of AUD $15
million as determined on the Execution Date.
J. Thomas Wilson, President and CEO of the Company,
stated: "Due to the substantial appreciation of Central's
share price since announcing this Transaction in February, the
Company at this point has realized effectively over AUD $40 million
in value for the sale of its onshore Australia assets. With
the AUD $20 million in cash proceeds, we believe we have sufficient
funds to complete our CO2-enhanced oil recovery pilot at Poplar and
drill exploratory wells in the UK to establish the value of these
projects. Therefore, we intend to continue holding our
position in Central's stock, which we believe represents an
opportunity for further substantial appreciation. With over 70
million acres under permit onshore Australia, several active
exploration programs, and current or near term production from Palm
Valley, Dingo, and Surprise, we believe that Central will continue
to find opportunities to increase value for its
shareholders. For instance, on April 15, 2014, Central
announced that its Mount Kitty #1 Well, which is located along the
southern flank of the Amadeus Basin and is operated by Santos under
a farm-out agreement, has tested natural gas and helium. While
further time is needed to evaluate this prospect, this announcement
is very encouraging and speaks to the upside value potential of our
ownership stake."
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
Statements in this press release, including forecasts or
projections that are not historical in nature, are intended to be,
and are hereby identified as, forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995.
The words "anticipate", "assume", "believe", "budget", "estimate",
"evaluate", "expect", "forecast", "intend", "should", "initial",
"plan", "project", and similar expressions are intended to identify
forward-looking statements. These statements about the Company may
relate to its businesses and prospects, planned capital projects
and expenditures (including those relating to the Poplar CO2-EOR
project), increases or decreases in oil and gas production and
reserves, estimates regarding resource potential, revenues,
expenses and operating cash flows, and other matters that involve a
number of uncertainties that may cause actual results to differ
materially from expectations. Among these risks and uncertainties
are the following: whether the Company will realize the expected
benefits of the sale of its onshore Australian assets under the
Sale Deed, including through the future value of Central's stock;
whether Central will realize the expected benefits from the
preliminary test findings through the successful completion of the
Mount Kitty #1 Well; Central's ability to develop its acreage; the
variability of the Company's estimates regarding annual savings in
G&A expenses; the technical and economic viability of CO2-EOR
techniques at Poplar; our ability to enter into a long term CO2
supply for our Poplar CO2-EOR project; the value of our UK acreage
position, the uncertain nature of oil and gas prices in the United
States; uncertainties inherent in projecting future rates of
production from drilling activities; the uncertainty of drilling
and completion conditions and results; the availability and cost of
drilling, completion, and operating equipment and services; and
other matters discussed in the "Risk Factors" section of The
Company's most recent Annual Report on Form 10K and most recent
Quarterly Report on Form 10Q. Any forward-looking information
provided in this release should be considered with these factors in
mind. The Company assumes no obligation to update any
forward-looking statements contained in this report, whether as a
result of new information, future events, or otherwise.
ABOUT MAGELLAN Magellan Petroleum Corporation is an independent
oil and gas exploration and production company focused on the
development of a CO2-enhanced oil recovery ("CO2-EOR") program at
Poplar Dome in eastern Montana and the exploration of
unconventional hydrocarbon resources in the Weald Basin, onshore
UK. Magellan also owns an exploration block, NT/P82, in the
Bonaparte Basin, offshore Northern Territory, which the Company
currently plans to farm-out; and an 11% ownership stake in Central
Petroleum Limited (ASX: CTP), a
Brisbane based junior exploration and production company that
operates one of the largest holdings of prospective onshore acreage
in Australia. Magellan is headquartered in Denver, Colorado. The
Company's mission is to enhance shareholder value by maximizing the
full potential of existing assets. Magellan routinely posts
important information about the Company on its website at
www.magellanpetroleum.com.
For further information, please contact: Matthew
CiardielloManager, Investor
Relations720.484.2404IR@magellanpetroleum.com
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