|
Debt
|
9 Months Ended |
|---|---|
|
Mar. 31, 2015
|
|
| Debt Disclosure [Abstract] | |
| Debt |
Note 5 - Debt
Note Payable. The outstanding principal of a $1.7 million note payable by NP, re-issued in January 2011 (the "Note Payable"), was fully amortized as of June 30, 2014.
Line of Credit. The Company, through its wholly owned subsidiary NP, maintains a line of credit note (the "LCN") with West Texas State Bank ("WTSB"). As of March 31, 2015, $3,501 thousand of the total available $8,000 thousand LCN was drawn and $4,499 thousand remained available to borrow. The LCN will mature on September 30, 2015, and is subject to quarterly floating interest payments based on the Prime Rate (currently approximately 3.25%) and a floor rate of 3.25%. The LCN is secured by substantially all of NP's assets including a first lien on NP's oil and gas leases from the surface to the top of the Bakken, but excluding any rights to assets within or below the Bakken. Magellan, the parent entity of NP, provided a guarantee of the LCN secured by a pledge of its membership interest in NP. Magellan and NP are subject to certain customary restrictive covenants under the terms of the LCN. As of March 31, 2015, the Company was in compliance with all such covenants. As of May 13, 2015, the outstanding balance on the LCN totaled $5,500 thousand. The Company is currently in discussions with WTSB to convert the LCN to a term loan before the maturity date. If the Company is unable to obtain such conversion, the Company plans to repay the outstanding balance with expected proceeds from the contemplated sale of certain of its assets.
|