Magellan Announces Second Quarter Earnings
HARTFORD, Conn., Feb. 20 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported a consolidated net loss of $8,000 ($0 per share) on gross revenues of $8.4 million in its fiscal second quarter ended December 31, 2006, as compared to a net loss of $226,000 ($.01 per share) on revenues of $6.5 million in last year's second quarter. Exploration and dry hole costs for the 2006 quarter increased 200% over the 2005 quarter, due mostly to increased drilling costs of $1.5 million related to the Cooper Basin.
For the six-month period ended December 31, 2006, the Company reported net income of $1 million ($.02 per share) on $15.2 million in revenues, compared to a net loss of $254,000 ($.01 per share) on revenues of $12.6 million in the prior period last year.
Magellan reports on a consolidated basis with its 100% owned Australian subsidiary, Magellan Petroleum Australia Limited (MPAL). During fiscal 2006, Magellan completed its Exchange Offer to purchase the remaining MPAL shares that it did not own. The Company had $29.4 million of cash and marketable securities at December 31, 2006, compared to $22.4 million at December 31, 2005 and no long-term debt.
Magellan's president, Dan Samela said, "We are very pleased with the results for the first half of fiscal 2007. We are also excited about our eleven-well exploration, appraisal and development drilling campaign that commenced in the Nockatunga oil field on Petroleum Lease 51 on December 31, 2006. To date, one appraisal well, three development wells and one exploration well have been drilled. All of these wells have been cased and suspended as future oil producers."
Statements in this press release which are not historical in nature are intended to be, and are hereby identified as, forward looking statements for purposes of the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The Company cautions readers that forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements. Among these risks and uncertainties are pricing and production levels from the properties in which the Company has interests, and the extent of the recoverable reserves at those properties. In addition, the Company has a large number of exploration permits and faces the risk that any wells drilled may fail to encounter hydrocarbons in commercially recoverable quantities. The Company undertakes no obligation to update or revise forward- looking statements, whether as a result of new information, future events, or otherwise.
Comparative, consolidated results for the three and six-month periods are shown in the following consolidated statements of income (loss):
MAGELLAN PETROLEUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2006 2005 2006 2005
REVENUES:
Oil sales $3,227,393 $2,184,124 $6,152,907 $4,639,172
Gas sales 4,490,952 3,715,290 7,894,350 6,933,228
Other production
related revenues 695,740 559,604 1,189,992 981,298
Total revenues 8,414,085 6,459,018 15,237,249 12,553,698
COSTS AND EXPENSES:
Production costs 1,806,267 1,949,329 3,597,406 4,158,983
Exploration and
dry hole costs 2,541,280 846,517 2,973,263 2,157,958
Salaries and
employee benefits 394,972 334,588 710,102 681,040
Depletion, depreciation
and amortization 2,762,867 1,539,840 4,764,819 2,902,144
Auditing, accounting
and legal services 148,204 118,152 324,009 215,589
Accretion expense 134,413 108,747 266,179 218,716
Shareholder
communications 159,342 85,181 235,890 137,530
Loss (gain) on sale of
field equipment - 5,339 - (149,767)
Other administrative
expenses 644,969 1,032,540 1,167,581 1,717,669
Total costs
and expenses 8,592,314 6,020,233 14,039,249 12,039,862
Operating (loss) income (178,229) 438,785 1,198,000 513,836
Interest income 425,793 321,117 770,913 661,226
Income before income
taxes and minority
interests 247,564 759,902 1,968,913 1,175,062
Income tax provision (255,471) (424,910) (946,684) (615,257)
(Loss) income before
minority interests (7,907) 334,992 1,022,229 559,805
Minority interests - (561,176) - (814,044)
NET (LOSS) INCOME (7,907) (226,184) 1,022,229 (254,239)
Average number of
shares outstanding
Basic 41,500,325 25,783,243 41,500,325 25,783,243
Diluted 41,500,325 25,783,243 41,500,325 25,783,243
NET (LOSS) INCOME PER
SHARE (BASIC AND DILUTED) $(.00) $(.01) $.02 $(.01)
SOURCE Magellan Petroleum Corporation
Released February 20, 2007