FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
------------------------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to____________________
Commission file number 1-5507
MAGELLAN PETROLEUM CORPORATION
...............................................................................
(Exact name of registrant as specified in its charter)
DELAWARE 06-0842255
...............................................................................
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
149 Durham Road, Madison, Connecticut 06443
...............................................................................
(Address of principal executive offices) (Zip Code)
203-245-8380
...............................................................................
Registrant's telephone number, including area code)
...............................................................................
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
l934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
|X| Yes |_| No
The number of shares outstanding of the issuer's single class
of common stock as of May 1, 1995 was 24,423,745.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MAGELLAN PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEET
(unaudited)
March 31, June 30,
1995 1994
ASSETS
Current assets:
Cash and cash equivalents ............................ $ 7,492,100 $ 8,350,577
Accounts receivable .................................. 2,761,726 2,032,230
Reimbursable development costs ....................... 619,445 89,512
Inventories .......................................... 271,311 280,316
------------ ------------
Total current assets ......................... 11,144,582 10,752,635
------------ ------------
Property and equipment:
Oil and gas properties (full cost method) ............ 61,881,892 57,573,344
Land, buildings and equipment ........................ 2,216,088 1,951,192
Field equipment ...................................... 1,532,521 1,508,135
Less accumulated depletion, depreciation
and amortization ................................... (28,586,011) (25,655,085)
------------ ------------
37,044,490 35,377,586
------------ ------------
Other assets:
Deferred tax asset ................................... -- --
Other assets ......................................... 302,882 300,490
------------ ------------
$ 48,491,954 $ 46,430,711
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ..................................... $ 1,853,952 $ 1,508,436
Accrued liabilities .................................. 776,858 684,708
------------ ------------
Total current liabilities .................... 2,630,810 2,193,144
------------ ------------
Long term liabilities and minority interests:
Deferred income taxes ................................ 8,332,135 6,938,586
Reserve for future restoration costs ................. 2,239,752 2,218,422
Minority interests ................................... 16,475,307 16,764,441
------------ ------------
27,047,194 25,921,449
------------ ------------
Stockholders' equity:
Common stock, par value $.01 per share:
Authorized 50,000,000 shares
Outstanding 24,423,745 and 24,387,107 shares,
respectively ...................................... 244,237 243,871
Capital in excess of par value ....................... 43,010,451 42,982,694
------------ ------------
43,254,688 43,226,565
Deficit .............................................. (20,178,756) (20,436,827)
Accumulated translation adjustments .................. (4,261,982) (4,473,620)
------------ ------------
18,813,950 18,316,118
------------ ------------
$ 48,491,954 $ 46,430,711
============ ============
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MAGELLAN PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
Three months ended Nine months ended
March 31, March 31,
---------- ---------
1995 1994 1995 1994
----- ----- ----- ----
Revenues:
Oil sales ............................ $ 1,527,299 $ 1,420,205 $ 4,381,803 $ 4,280,992
Gas sales ............................ 2,046,455 1,760,725 5,839,788 5,093,368
Interest and other income ............ 367,244 153,283 830,434 615,762
-------------- -------------- -------------- --------------
3,940,998 3,334,213 11,052,025 9,990,122
-------------- -------------- -------------- --------------
Costs and expenses:
Production costs ..................... 953,538 973,028 2,719,812 2,790,864
Salaries and employee benefits ....... 457,675 266,220 1,143,530 926,500
Depletion, depreciation and
amortization ....................... 1,003,577 891,970 2,776,080 2,599,961
Auditing, accounting and
legal services ..................... 132,379 141,196 555,607 534,649
Shareholder communications ........... 25,469 89,687 140,359 152,084
Other ................................ 175,854 291,761 633,772 728,494
Interest ............................. 7,330 7,210 22,480 21,082
Expenses (recovery) related to Sagasco
tender offer and litigation ........ -- (61,171) -- 423,493
-------------- -------------- -------------- --------------
2,755,822 2,599,901 7,991,640 8,177,127
-------------- -------------- -------------- --------------
Income before minority interests
and income taxes ................... 1,185,176 734,312 3,060,385 1,812,995
Minority interests ................... 652,777 450,197 1,851,058 1,474,192
-------------- -------------- -------------- --------------
Income (loss) before income taxes .... 532,399 284,115 1,209,327 338,803
Income tax provision ................. 239,750 202,306 951,256 835,239
-------------- -------------- -------------- --------------
Net income (loss) ...................... $ 292,649 $ 81,809 $ 258,071 $ (496,436)
============== ============== ============== ==============
Average number of shares
outstanding ........................ 24,408,745 24,381,890 24,398,604 24,381,890
============== ============== ============== ==============
Net income (loss) per share .......... $ .01 -- $ .01 $ (.02)
============== ============== ============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
Capital in Accumulated
Number Common excess of translation
of shares stock par value Deficit adjustments Total
June 30, 1994 ............. 24,387,107 $ 243,871 $ 42,982,694 $(20,436,827) $ (4,473,620) $ 18,316,118
Net income .............. -- -- -- 258,071 -- 258,071
Currency
translation ............... -- -- -- -- 211,638 211,638
adjustments
Common stock issued
to directors ............ 16,638 166 12,957 -- -- 13,123
Exercise of stock options 20,000 200 14,800 15,000
------------ ------------ ------------ ------------ ------------ ------------
March 31, 1995 ............ 24,423,745 $ 244,237 $ 43,010,451 $(20,178,756) $ (4,261,982) $ 18,813,950
============ ============ ============ ============ ============ ============
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MAGELLAN PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
Nine months ended
March 31,
1995 1994
Operating Activities:
Net income (loss) ........................................ $ 258,071 $ (496,436)
Adjustments to reconcile net loss
to net cash provided by operating activities:
Depletion, depreciation and amortization .............. 2,776,080 2,599,961
Deferred income taxes ................................. 720,654 977,260
Minority interests .................................... 1,851,058 1,474,192
Increase (decrease) in operating assets and liabilities:
Accounts receivable ................................... (720,157) (117,785)
Reimbursable development costs ........................ (528,357) 474,674
Other assets .......................................... (1,050) (68,505)
Inventories ........................................... 10,232 (28,693)
Accounts payable and accrued
liabilities ......................................... 448,224 (2,085,728)
------------- -------------
Net cash provided by operating activities ................. 4,814,755 2,728,940
------------- -------------
Investing Activities:
Net additions to property and equipment ................. (4,170,447) (3,228,559)
------------- -------------
Net cash used in investing activities ................... (4,170,447) (3,228,559)
------------- -------------
Financing Activities:
Dividends to MPAL minority shareholders ................. (1,673,345) (1,447,208)
Exercise of MPC stock options and stock issued
for directors' fees ..................................... 28,123 --
------------- -------------
Net cash used in financing activities ................... (1,645,222) (1,447,208)
------------- -------------
Effect of exchange rate changes on cash
and cash equivalents .................................... 142,437 138,346
------------- -------------
Net decrease in cash and
cash equivalents ...................................... (858,477) (1,808,481)
Cash and cash equivalents at
beginning of year ..................................... 8,350,577 8,981,872
------------- -------------
Cash and cash equivalents at
end of period ......................................... $ 7,492,100 $ 7,173,391
============= =============
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 1. Financial Statements - Notes
The information for the three and nine month periods ended March 31,
1995 and 1994, is unaudited but includes all adjustments which the Company
considers necessary for a fair presentation of the results of operations for
those periods. All adjustments are of a normal recurring nature. The
consolidated financial statements include the Company's 50.7% owned subsidiary,
Magellan Petroleum Australia Limited ("MPAL").
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
Consolidated
At March 31, 1995, the Company on a consolidated basis had
approximately $7,492,000 of cash and cash equivalents. A summary of the major
changes in cash items during the period is as follows:
Cash and cash equivalents at beginning of year $8,351,000
Cash provided by operations 4,815,000
Net additions to property and equipment (4,170,000)
Cash dividends paid to MPAL minority shareholders (1,673,000)
Other 169,000
----------
Cash and cash equivalents at end of period $7,492,000
==========
As to the Company (unconsolidated)
At March 31, 1995, Magellan Petroleum Corporation ("MPC"), on an
unconsolidated basis, had cash and cash equivalents of approximately $1,686,000.
MPC's normal annual operating budget is approximately $800,000 and its current
cash position and its future dividends from MPAL should be adequate to meet its
current cash requirements. MPC also has available a $1.5 million bank line of
credit. MPC has in the past invested and may in the future invest substantial
portions of its available funds to maintain its majority interest in MPAL.
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
MPC is also a 10% participant in MPAL's Baca County, Colorado drilling
project (MPAL 90%). MPC's committment for drilling the initial three wells in
the project is approximately $150,000.
As to MPAL
At March 31, 1995, MPAL had cash and cash equivalents of approximately
$5,806,000 MPAL has budgeted approximately $1.0 million for exploration in
fiscal 1995 in comparison to the $1.6 million incurred during fiscal 1994. The
current composition of MPAL's oil and gas reserves are such that the Company's
future revenues in the long term are expected to be derived from the sale of gas
in Australia.
MPAL expects to fund its exploration and development costs through its
cash flow from Australian operations, and if necessary, any additional
requirements from its A.$10 million bank line of credit.
Results of Operations
Three month period ended March 31, 1995 vs. March 31, 1994.
The Company had consolidated net income of $292,649 for the three month
period ended March 31, 1995 compared to net income of $81,809 for the comparable
1994 period. The components of consolidated net income for the comparable
periods were as follows:
Three month period ended
March 31,
1995 1994
MPC unconsolidated pretax loss $(137,794) $(178,092)
MPC income tax expense (311) -
Share of MPAL pretax income 670,193 462,207
Share of MPAL income tax provision (239,439) (202,306)
---------- --------
Consolidated net income $ 292,649 $ 81,809
========= =========
Net income per share $.01 $ -
==== ====
PART I FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Oil and Gas Sales
Oil and gas sales (in thousands) by geographic location for the
comparable periods were as follows:
Three month period ended March 31,
1995 1995 1994 1994
Sales % Sales %
Australia $3,418 96 $3,039 96
United States 156 4 142 4
------- ----- ------- -----
$3,574 100 $3,181 100
====== ==== ====== ===
Oil Sales
Oil sales increased by 8% in fiscal 1995. Oil sales in Australia
increased because of an 11% increase in oil prices which were partially offset
by a 3% decrease in the number of units sold. This increase was also assisted by
a 6% increase in the value of the Australian dollar. MPAL's share of oil sales
in the United States decreased as the number of units sold decreased 18% with a
25% increase in oil prices. Oil unit sales in barrels ("bbls"), the average
price per barrel sold and the average daily production during the periods
indicated were as follows:
Three month period ended March 31,
1995 Sales 1994 Sales
---------------------------------------------------------------------------------------
Average Average
Average Daily Average Daily
price Production price Production
bbls per bbl bbl bbls per bbl bbl
Australia - Mereenie 83,896 A.$24.05 915 86,656 A.$21.74 933
United States - Navajo Venture 9,164 U.S.$17.49 98 11,125 U.S.$14.03 126
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Gas Sales
Gas sales increased 16%. Gas sales in Australia increased with a 5%
increase in the volumes of gas sold, a 6% increase in the value of the
Australian dollar and modest price increases. Total gas volumes are expected to
continue at least at current levels in the short term. The volumes in billion
cubic feet ("bcf"), (before deducting royalties), the average price of gas per
thousand cubic feet ("mcf") sold and the average daily production during the
periods indicated were as follows:
Three month period ended March 31,
1995 Sales 1994 Sales
Average Average
Daily Daily
Price Production Price Production
bcf per mcf mmcf bcf per mcf mmcf
Australia:
Palm Valley
Alice Springs contract .268 A.$2.77 3.0 .268 A.$2.70 2.4
Darwin contract .664 A.$1.98 7.4 .860 A.$1.97 10.3
Mereenie .551 A.$1.78 6.1 .284 A.$1.48 2.8
---- --- ---- ----
Total 1.483 16.5 1.412 15.5
===== ==== ===== ====
Interest and other income
Interest and other income increased 140% in 1995. The increase is
attributable to more funds invested at higher rates.
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Costs and Expenses
Production costs decreased 2%. The 2% decrease in Australia relates to
a reduction in costs at Palm Valley. Production costs by geographic area and the
relationship to oil and gas sales (in thousands) is as follows:
Three month period ended March 31,
1995 1995 1995 1994 1994 1994
Production % % Production % %
costs total sales sales by country costs total sales sales by country
Australia $895 25 26 $912 29 30
United States 59 2 38 61 2 43
----- ----- ---- --
$954 27 $973 31
==== ==== ==== ==
Salaries and employee benefits increased 72% primarily because of increased
compensation costs in Australia and a 6%increase in the value of the Australian
dollar.
Depreciation, depletion and amortization increased 13% in 1995. The
costs in Australia increased because of the increase in the value of the
Australian dollar and an increase in capitalized costs of oil and gas
properties. The U.S. amounts have decreased because of an increase in the
remaining oil and gas reserves. The following table is a summary of the
depreciation, depletion and amortization expense (in thousands) by geographic
area:
Three month period ended March 31,
1995 1994 % Change
Australia $768 $612 25
United States 236 280 (16)
--- ---
$1,004 $892
====== ====
Auditing, accounting and legal services decreased 6% because of cost
saving measures.
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Shareholder communications decreased 72% primarily because of a timing
difference in the holding of the Annual Meeting of Stockholders between the two
periods and cost savings measures.
Other expenses decreased 40% because MPAL was able to recover a greater
portion of its overhead as operator of the Palm Valley Joint Venture.
Interest expense is the cost of maintaining MPC's and MPAL's lines of
credit.
Income Taxes
A reconciliation of the income tax provisions (in thousands) for the
periods is as follows:
Three month period
ended December 31,
1995 1994
Pretax consolidated income $532 $284
Losses not recognized:
Company's U.S. operations 138 178
MPAL's U.S. operations 91 149
Permanent differences (34) 2
------ -----
Book taxable income $727 $613
==== ====
Australian tax rate 33% 33%
===== ===
MPC income tax provision $ - $ -
MPAL deferred income tax provision 240 202
----- ----
Consolidated $ 240 $202
===== ====
Exchange Effect
The value of the Australian dollar relative to the U.S. dollar
decreased to $.7345 at March 31, 1995 compared to the value of $.7756 at
December 31, 1994. This resulted in a $854,000 charge to the accumulated
translation adjustments account for the three month period ended March 31, 1995.
The average exchange rate used to translate MPAL's operations in Australia was
$.7483 for the quarter ended March 31, 1995, which is a 6% increase compared to
the $.7078 rate for the quarter ended March 31, 1994.
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Results of Operations
Nine month period ended March 31, 1995 vs. March 31, 1994.
The Company had consolidated income of $258,071 for the nine month
period ended March 31, 1995 compared to a net loss of $496,436 for the
comparable 1994 period. The components of consolidated net loss for the
comparable periods were as follows:
Nine month period ended
March 31,
1995 1994
MPC unconsolidated pretax loss $ (691,115) $(1,174,719)
MPC income tax expense (260,409) (222,900)
Share of MPAL pretax income 1,900,442 1,513,522
Share of MPAL income tax provision (690,847) (612,339)
---------- -----------
Consolidated net income (loss) $ 258,071 $ (496,436)
========= ============
Net income (loss) per share $.01 $(.02)
==== ======
Oil and Gas Sales
Oil and gas sales (in thousands) by geographic location for the
comparable periods were as follows:
Nine month period ended March 31,
1995 1995 1994 1994
Sales % Sales %
Australia $9,744 95 $8,844 94
United States 478 5 530 6
------- ---- ------ --------
$10,222 100 $9,374 100
======= === ====== ===
PART I FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Oil Sales
Oil sales increased 2% in fiscal 1995. Oil sales in Australia
increased 4% despite a 4% decrease in oil prices and a 1% decrease in the number
of units sold because of a 10% increase in the value of the Australian dollar.
MPAL's share of oil sales in the United States decreased 11% because the number
of units sold decreased 22%, however, a 15% increase in oil prices partially
offset this decline in sales. Oil unit sales in barrels ("bbls"), the average
price per barrel sold and the average daily production during the periods
indicated were as follows:
Nine month period ended March 31,
1995 Sales 1994 Sales
Average Average
Average Daily Average Daily
price Production price Production
bbls per bbl bbl bbls per bbl bbl
Australia - Mereenie 241,139 A.$23.41 880 243,944 A.$24.32 890
United States - Navajo Venture 28,359 U.S.$17.31 104 36,359 U.S.$15.01 133
Gas Sales
Gas sales increased 15%. Gas sales in Australia increased because of a
1% increase in the volumes of gas sold, a 10% increase in the value of the
Australian dollar and modest price increases. Total gas volumes are expected to
continue at least at current levels in the short term. The volumes in billion
cubic feet ("bcf"), (before deducting royalties), the average price of gas per
thousand cubic feet ("mcf") sold and the average daily production during the
periods indicated were as follows:
Nine month period ended March 31,
------------------------------------------------------------------
1995 Sales 1994 Sales
-----------------------------------------------------------------------------
Average Average
Daily Daily
Price Production Price Production
bcf per mcf mmcf bcf per mcf mmcf
Australia:
Palm Valley
Alice Springs contract .767 A.$2.75 2.8 .727 A.$2.69 2.4
Darwin contract 2.254 A.$1.97 8.2 2.756 A.$1.97 10.3
Mereenie 1.307 A.$1.72 4.8 .785 A.$1.40 2.8
----- ----- ---- ----
Total 4.328 15.8 4.268 15.5
===== ===== ==== ====
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Interest and other income
Interest and other income increased 35% in 1994. The increase is
attributable to higher interest income with more funds invested at higher rates.
Costs and Expenses
Production costs decreased 3%. Australian costs were relatively unchanged.
U.S. costs have declined because production decreased and field operations were
scaled back during the current period. Production costs (in thousands) by
geographic area and the relationship to oil and gas sales is as follows:
Nine period ended March 31,
1995 1995 1995 1994 1994 1994
Production % % Production % %
costs total sales sales by country costs total sales sales by country
Australia $2,582 25 26 $2,571 27 29
United States 138 1 29 220 3 42
------- ---- ------- --
$2,720 26 $2,791 30
======= ==== ====== ==
Salaries and employee benefits increased 23% primarily because of a 10%
increase in the value of the Australian dollar and an increase in compensation
levels.
Depreciation, depletion and amortization increased 7% in 1995. The
costs in Australia increased because of the 10% in the value of the Australian
dollar and an increase in capitalized costs of oil and gas properties. The U.S.
amounts have decreased because of an increase in the remaining oil and gas
reserves. The following table is a summary of the depreciation, depletion and
amortization expense (in thousands) by geographic area:
Nine month period ended March 31,
1995 1994
Australia $2,155 $1,755
United States 621 845
------ -------
$2,776 $2,600
====== ======
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Shareholder communications decreased 8% primarily because of cost
saving measures.
Other expenses decreased 13% because MPAL was able to recover a greater
portion of its overhead as operator of the Palm Valley Joint Venture.
Interest expense is the cost of maintaining MPC's and MPAL's lines of
credit.
Expenses related to Sagasco tender offer and litigation were all
reimbursed under the Company's D&O insurance policy during the first quarter of
fiscal 1995. All the U.S. related litigation has been terminated.
Income Taxes
A reconciliation of the income tax provisions (in thousands) for the
periods is as follows:
Nine month period
ended March 31,
1995 1994
Pretax consolidated income $1,209 $ 339
Losses not recognized:
MPC's U.S. operations 691 1,175
MPAL's U.S. operations 193 307
Permanent differences 1 34
-------- -------
Book taxable income $2,094 $1,855
====== ======
Australian tax rate 33% 33%
==== ===
MPC income tax provision $260 $ 223
MPAL deferred income tax provision 691 612
----- ------
Consolidated $ 951 $ 835
===== ======
PART I - FINANCIAL INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Exchange Effect
The value of the Australian dollar relative to the U.S. dollar
increased to $.7345 at March 31, 1995 compared to the value of $.7287 at June
30, 1994. This resulted in a $212,000 credit to the accumulated translation
adjustments account for the nine month period ended March 31, 1995. The 1%
increase in the value of the Australian dollar increased the reported asset and
liability amounts in the balance sheet at March 31, 1995 from the June 30, 1994
amounts. The average exchange rate used to translate MPAL's operations in
Australia was $.7477 for the nine months ended March 31, 1995, which is a 10%
increase compared to the $.6813 rate for the March 31, 1994 period.
PART II - OTHER INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 4. Submission of Matters to a Vote of Security Holders.
(a) On January 13, 1995, the Company held its Annual Meeting of
Stockholders.
(b) Directors Walter McCann and C. Dean Reasoner were reelected for
additional three year terms. Directors Dennis D. Benbow, Benjamin W. Heath, G.
Gordon Gibson and James R. Joyce continued in office.
(c) 1. The stockholder proposal to amend Article Twelfth was not approved.
The proposal was not approved because any matter to be voted upon at any meeting
must be approved, not only by a majority of the shares voted at such meeting,
but also by a majority of the stockholders present in person or by proxy and
entitled to vote. The vote was as follows:
Number of Number of
Shares Voted Shareholders Voting
For 5,290,896 1,348
Against 4,590,141 2,364
Abstain 349,066 165
2. The stockholder proposal for a stock repurchase program was not
approved. The proposal was not approved because any matter to be voted upon at
any meeting must be approved, not only by a majority of the shares voted at such
meeting, but also by a majority of the stockholders present in person or by
proxy and entitled to vote. The vote was as follows:
Number of Number of
Shares Voted Shareholders Voting
For 5,696,941 1,406
Against 4,240,780 2,310
Abstain 292,382 161
PART II OTHER INFORMATION
MAGELLAN PETROLEUM CORPORATION
March 31, 1995
Item 4. Submission of Matters to a Vote of Security Holders (Cont'd).
(c) 3. The stockholder proposal to amend the stock option plan was not
approved. The proposal was not approved because any matter to be voted upon at
any meeting must be approved, not only by a majority of the shares voted at such
meeting, but also by a majority of the stockholders present in person or by
proxy and entitled to vote. The vote was as follows:
Number of Number of
Shares Voted Shareholders Voting
For 5,572,858 1,443
Against 4,418,023 2,276
Abstain 239,222 158
Item 5. Other Information.
The gas and liquids treatment plant upgrade at the Mereenie
field is now fully operational and the plant is scheduled to be officially
commissioned on May 29, 1995. The plant is expected to increase the daily oil
production by approximately 100 bpd.
On April 25, 1995, MPC and MPAL commenced an initial three
well exploration drilling program on its acreage in Baca County, Colorado. MPC
and MPAL had a 9% and a 79% net working interest, respectively in 70,000 net
acres with 25 prospects that have been identified.
On May 10, 1995, the Australian government issued the budget
for 1995/1996 fiscal year which includes a proposal to increase the corporate
income tax rate from 33% to 36%.
Item 6. Exhibits and Reports on Form 8-K
On January 18, 1995, the Company filed Form 8-K to announce
that the Board of Directors authorized the open market repurchase of up to
200,000 shares of the Company's common stock.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized:
MAGELLAN PETROLEUM CORPORATION
Registrant
Date: May 12, 1995 By /s/ James R. Joyce
---------------------
James R. Joyce, President and
Chief Financial and Accounting Officer