Magellan Petroleum Corporation Announces 3rd Quarter Earnings
HARTFORD, Conn., May 16 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported consolidated net income of $286,000 ($.01 per share) on gross revenues of $6.8 million in its fiscal third quarter ended March 31, 2007, as compared to net income of $700,000 ($.03 per share) on revenues of $7.4 million in last year's third quarter. Exploration and dry hole costs for the 2007 quarter increased 337% over the 2006 quarter, due mostly to increased drilling costs of $1.0 million related to the Cooper Basin.
For the nine-month period ended March 31, 2007, the Company reported net income of $1.3 million ($.03 per share) on $22.1 million in revenues, compared to net income of $446,000 ($.02 per share) on revenues of $20.0 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 $28.5 million of cash and marketable securities at March 31, 2007, compared to $20.9 million at March 31, 2006 and no long-term debt.
Magellan's president, Dan Samela said, "We are very pleased with the results for the first nine months of fiscal 2007. We are looking forward to generating revenue from our recent successful drilling campaign that commenced in the Nockatunga oil field on Petroleum Lease 51 on December 31, 2006. Planning for the completion for production and tie-in of the wells to the existing facilities is well advanced, with several of the wells expected to be on-line before the end of the fiscal year."
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 the ultimate outcome of the MPAL tax audit by the Australian Taxation Office, 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 nine-month periods are shown in the following consolidated statements of income:
MAGELLAN PETROLEUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2007 2006 2007 2006
REVENUES:
Oil sales $2,305,561 $3,462,059 $8,458,469 $8,101,231
Gas sales 3,879,437 3,382,087 11,773,787 10,315,315
Other production
related revenues 663,624 514,272 1,853,616 1,495,570
Total revenues 6,848,622 7,358,418 22,085,872 19,912,116
COSTS AND EXPENSES:
Production costs 1,535,250 2,061,517 5,132,656 6,220,500
Exploration and dry
hole costs 1,568,281 358,577 4,541,543 2,516,535
Salaries and employee
benefits 341,105 291,570 1,051,207 972,610
Depletion, depreciation
and amortization 2,267,720 1,485,903 7,032,541 4,388,047
Auditing, accounting
and legal services 114,106 84,383 438,115 299,972
Accretion expense 136,882 107,114 403,062 325,830
Loss on asset
retirement obligation
settlement - 444,566 - 444,566
Shareholder
communications 114,321 238,865 350,210 376,395
(Gain) loss on sale of
field equipment (7,772) 34,186 (7,966) (115,581)
Other administrative
expenses 638,309 247,670 1,806,083 1,965,339
Total operating costs
and expenses 6,708,202 5,354,351 20,747,451 17,394,213
Operating income 140,420 2,004,067 1,338,421 2,517,903
Interest income 437,781 290,097 1,208,693 951,323
Income before income
taxes and minority
interests 578,201 2,294,164 2,547,114 3,469,226
Income tax provision (292,274) (716,936) (1,238,958) (1,332,193)
Income before minority
interests 285,927 1,577,228 1,308,156 2,137,033
Minority interests - (877,049) - (1,691,093)
NET INCOME 285,927 700,179 1,308,156 445,940
Average number of shares
outstanding
Basic 41,500,325 25,783,243 41,500,325 25,783,243
Diluted 41,500,325 25,847,735 41,500,325 25,895,336
NET INCOME PER SHARE
(BASIC AND DILUTED) $0.01 $0.03 $0.03 $0.02
SOURCE Magellan Petroleum Corporation
Released May 16, 2007