Exhibit 99.1
MAGELLAN ANNOUNCES SHAREHOLDER SETTLEMENT
PORTLAND,
Maine, and NEW YORK, N.Y. April 6, 2009 Magellan Petroleum Corporation (NASDAQ:
MPET) (ASX: MGN) (Magellan or the Company) announced a full and complete Settlement Agreement
with ANS Investments LLC and Jonah M. Meer in advance of the Companys 2008 Annual Meeting of
Shareholders (the Annual Meeting).
Settlement Agreement
On
April 3, 2009, the Company, ANS Investments LLC and its CEO, Jonah M. Meer (together, the ANS
Parties) entered into a Settlement Agreement that terminates the proxy solicitation efforts of the
ANS Parties on mutually agreeable terms and gains the full support of ANS Investments and Jonah
Meer as the Company moves forward with its strategic plans. Previously, the ANS Parties filed
proxy materials with the U.S. Securities and Exchange Commission (SEC) describing their
intentions to nominate Mr. Meer as a candidate for election as a director of the Company and to
present two other proposals to the Companys shareholders.
Under the terms of the Settlement Agreement, the ANS Parties have agreed to withdraw both the
nomination of Mr. Meer as a director candidate and their other proposals, to terminate all proxy
solicitation efforts with respect thereto, to support each of the proposals that the Company
intends to present to its shareholders at the Annual Meeting and to vote all of their shares in
favor of these proposals in accordance with the recommendation of the Companys Board of Directors.
In exchange, the Company has agreed to reimburse the ANS Parties up to $125,000 for their legal
and related expenses incurred by the ANS Parties. The Company will file with the SEC a current
report on Form 8-K which will include as an exhibit a copy of the Settlement Agreement.
Magellans President and Chief Executive Officer, William H. Hastings said, [w]e have recently
held constructive meetings with ANS Investments and Mr. Meer and view this settlement as positive
and in the best interests of the Company and its shareholders. The settlement allows us to focus
all of our efforts on achieving our goal of making Magellan a unique, mid-level, natural gas
development company. The Board looks forward to promptly scheduling our shareholders Annual
Meeting and believes that our shareholders will broadly support each of the critically important
matters to be voted upon at the upcoming Annual Meeting, including updating the Companys corporate
governance provisions and completing the Companys pending $10 million equity investment with our
strategic investor, Young Energy Prize S.A. of Luxembourg.
Jonah Meer, CEO of ANS Investments, added We are very pleased to resolve our differences with
Magellan and are happy to support the Companys management and the Boards proposals for
shareholder action at the Annual Meeting. During the past year, we have been advocating for
improved management, corporate governance reform, increased communication with shareholders and
increased shareholder value. In our recent meetings with Bill Hastings and representatives of
Magellans strategic investor, we have come to appreciate the significant improvements that the
Company has implemented and the business strategies that Bill and the Board intend to pursue going
forward. We strongly support and will vote in favor of each of the Companys proposals being
submitted to shareholders at the upcoming Annual Meeting, including YEPs strategic equity
investment in the Company. We are confident that, as business conditions in the oil and gas
business improve in the future, Magellans management team will take the steps necessary to achieve
our shared objective of Magellans business success and increased shareholder value. We agree with
YEP and Bill Hastings that prudent stewardship of the Companys resources has positioned it to grow
and prosper now and in the future.
Important Information
Magellan filed a preliminary proxy statement with the SEC on February 11, 2009, in connection with
the election of one director and other actions to be taken at the Annual Meeting. Magellan will
soon be filing a revised preliminary proxy statement for the Annual Meeting. Thereafter, Magellan
will announce the date and location of the Annual Meeting and mail to its shareholders a definitive
proxy statement and proxy card in connection with the Annual Meeting.
Shareholders are urged to read the Companys definitive proxy statement (as well as any amendments
or supplements thereto) relating to the Annual Meeting when it becomes available because it will
contain important information. After being filed with the SEC, shareholders will be able to obtain
the definitive proxy statement (as well as any amendments or supplements thereto) and other
relevant documents free of charge at the SECs website, www.sec.gov. In addition, copies
of the definitive proxy statement and other relevant documents will be made available for free to
any Magellan shareholder who makes a request to the Companys officers listed below.
Magellan and its directors, executive officers and other employees may be deemed to be participants
in the solicitation of proxies in connection with the Annual Meeting. Information regarding the
names and interests of these persons in connection with the Annual Meeting was included in the
Companys preliminary proxy statement, filed with the SEC on February 11, 2009, as such information
may be supplemented or amended by the definitive proxy statement.
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About Magellan
Magellan was established in 1957, and was incorporated in the State of Delaware in 1967. Magellan
files annual, quarterly and special reports, proxy and information statements, and other
information with the SEC. These documents are available free of charge at the SECs website at
www.sec.gov or from Magellan at www.magpet.com. The Company is engaged in the sale
of oil and gas resulting from the exploration for and development of oil and gas reserves.
Magellans most significant asset is its 100% equity ownership interest in Magellan Petroleum
Australia Limited. Magellan also has a 2.67% carried interest in the Kotaneelee Gas Field in the
Yukon Territory of Canada and development interests in the U.K.
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For further information, please contact:
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Magellan:
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William H. Hastings, President and CEO, at (207) 776-5616
Daniel J. Samela, Chief Financial Officer, at (860) 293-2006 |
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ANS Investments LLC:
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Jonah M. Meer, CEO, at (212) 945-2080 |
Forward- Looking Statements
Statements in this release which 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. These statements about Magellan and Magellan Petroleum Australia Limited (MPAL) may
relate to their businesses and prospects, revenues, expenses, 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 likelihood and timing of the closing
of the YEP investment transaction, pricing and production levels from the properties in which
Magellan and MPAL have interests, the extent of the recoverable reserves at those properties, the
future outcome of the negotiations for gas sales contracts for the remaining uncontracted reserves
at both the Mereenie and Palm Valley gas fields in the Amadeus Basin, including the likelihood of
success of other potential suppliers of gas to the current customers of Mereenie and Palm Valley
production. In addition, MPAL has a large number of exploration permits and faces the risk that any
wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. Any
forward-looking information provided in this release should be considered with these factors in
mind. Magellan assumes no obligation to update any forward-looking statements contained in this
release, whether as a result of new information, future events or otherwise.
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