Magellan Petroleum Corporation Announces First Quarter Earnings
HARTFORD, Conn., Nov. 14 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported consolidated net income of $399,000 ($.01 per share) on gross revenues of $9.3 million in its fiscal first quarter ended September 30, 2007, as compared to net income of $1,030,000 ($.02 per share) on revenues of $6.8 million in last year's first quarter.
Magellan's president, Daniel Samela said, "Results were mixed for the quarter, but we are pleased with the increase in the volume of oil sales. With all ten new wells in the Nockatunga project tied in, sales volume increased 337% to almost 35,000 barrels this quarter from this field." Samela continued by saying, "in October a two- well drilling program was undertaken at Nockatunga, resulting in an additional well, Maxwell 5, cased and suspended as a future oil producer."
Exploration and dry hole costs for the 2007 quarter increased 366% over the 2006 quarter, due mostly to increased drilling costs of $1.5 million related to PEL 93 in the Cooper Basin, Australia.
The Company had $31.9 million of cash and marketable securities at September 30, 2007 and no long-term debt.
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 month periods are shown in the following consolidated statements of income:
MAGELLAN PETROLEUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
THREE MONTHS ENDED
SEPTEMBER 30,
2007 2006
REVENUES:
Oil sales $ 4,732,820 $ 2,925,514
Gas sales 3,989,184 3,403,398
Other production related revenues 599,929 494,252
Total revenues 9,321,933 6,8 23,164
COSTS AND EXPENSES:
Production costs 2,098,026 1,791,139
Exploratory and dry hole costs 2,013,474 431,983
Salaries and employee benefits 444,509 315,130
Depletion, depreciation and amortization 3,161,256 2,001,952
Auditing, accounting and legal services 237,051 175,805
Accretion expense 170,208 131,767
Shareholder communications 47,066 76,547
Gain on sale of field equipment (9,653) -
Other administrative expenses 869,913 522,612
Total costs and expenses 9,031,850 5,446,935
Operating income 290,083 1,376,229
Interest income 489,217 345,121
Income before income taxes 779,300 1,721,350
Income tax provision (380,770) (691,213)
Net income $398,530 $1,030,137
Average number of shares:
Basic 41,500,138 41,500,138
Diluted 41,500,138 41,500,138
Net income per share (basic and diluted) $0.01 $0.02
SOURCE Magellan Petroleum Corporation
Released November 14, 2007