Magellan Petroleum Corporation Announces Second Quarter Earnings
HARTFORD, Conn., Feb. 14 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported a consolidated net loss of $9.7 million ($.23 per share) on gross revenues of $10.4 million in its fiscal second quarter ended December 31, 2007, as compared to a net loss of $8,000 ($.00 per share) on revenues of $8.4 million in last year's second quarter.
For the six-month period ended December 31, 2007, the Company reported a net loss of $9.3 million ($.22 per share) on $19.7 million in revenues, compared to net income of $1 million ($.02 per share) on revenues of $15.2 million in the prior period last year.
The net loss for both the second quarter and the six month period ended December 31, 2007 includes a charge of $12.8 million ($.31 per share) in the income tax provision for the tax settlement between Magellan's 100% owned Australian subsidiary, Magellan Petroleum Australia Limited (MPAL) and the Australian Taxation Office (ATO). (See Magellan's press release dated February 7, 2008)
Magellan's president, Dan Samela said "A look at operating results before the tax provision tells a different story. Pretax income was up $2.9 million over last year's quarter due mostly to the successful drilling campaign in the Nockatunga oil field. Pretax income for the six months ended December 31, 2007 was $.09 per share, nearly double the $.05 per share last year.
Though we had to absorb a tough ATO settlement, we are pleased with our operating results for this quarter and the first half of fiscal 2008. Total revenues are up 23% and 29% for the quarter and six months, respectively over last year."
Exploration and dry hole costs for the 2007 quarter are down $1.8 million over the 2006 quarter due to reduced exploration expenditures in the Cooper Basin.
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 operations:
MAGELLAN PETROLEUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2007 2006 2007 2006
REVENUES:
Oil sales $4,887,721 $3,227,393 $9,620,541 $6,152,907
Gas sales 4,772,980 4,490,952 8,762,164 7,894,350
Other production
related revenues 713,280 695,740 1,313,209 1,189,992
Total revenues 10,373,981 8,414,085 19,695,914 15,237,249
COSTS AND EXPENSES:
Production costs 2,525,231 1,806,267 4,623,257 3,597,406
Exploration and
dry hole costs 724,117 2,541,280 2,737,591 2,973,263
Salaries and
employee benefits 375,840 394,972 820,349 710,102
Depletion,
depreciation
and amortization 2,796,390 2,762,867 5,957,646 4,764,819
Auditing,
accounting and
legal services 321,052 148,204 558,103 324,009
Accretion expense 176,180 134,413 346,388 266,179
Shareholder
communications 154,222 159,342 201,288 235,890
Gain on sale of
field equipment (17,304) - (26,957) -
Other administrative
expenses 771,732 644,969 1,641,645 1,167,581
Total costs and
expenses 7,827,460 8,592,314 16,859,310 14,039,249
Operating income
(loss) 2,546,521 (178,229) 2,836,604 1,198,000
Interest income 569,862 425,793 1,059,079 770,913
Income before
income taxes 3,116,383 247,564 3,895,683 1,968,913
Income tax
provision (12,797,866) (255,471) (13,178,636) (946,684)
NET (LOSS) INCOME (9,681,483) (7,907) (9,282,953) 1,022,229
Average number of
shares outstanding
Basic 41,500,325 41,500,325 41,500,325 41,500,325
Diluted 41,500,325 41,500,325 41,500,325 41,500,325
NET (LOSS) INCOME
PER SHARE
(BASIC AND DILUTED) $(.23) $(.00) $.(.22) $.02
SOURCE Magellan Petroleum Corporation
Released February 14, 2008