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