Magellan Petroleum Corporation Announces Third Quarter Earnings
HARTFORD, Conn., May 16 /PRNewswire-FirstCall/ -- Magellan Petroleum Corporation (Nasdaq: MPET) (ASX: MGN) reported consolidated net income of $1.7 million ($.04 per share) on gross revenues of $9.5 million in its fiscal third quarter ended March 31, 2008, as compared to net income of $286,000 ($.01 per share) on revenues of $6.8 million in last year's third quarter.
For the nine-month period ended March 31, 2008, the Company reported a net loss of $7.6 million ($.18 per share) on $29.2 million in revenues, compared to net income of $1.3 million ($.03 per share) on revenues of $22.1 million in the prior period last year.
Magellan's president, Dan Samela said, "We are pleased with our operating results for this quarter and for the first nine months of fiscal 2008. We've been able to absorb a difficult ATO settlement of approximately (AUS) $14.6 million yet increase our working capital since June 30, 2007 by $4.2 million on the strength of our cash flow from operations. Total revenues are up 39% and 32% for the quarter and nine months, respectively over last year due mostly to the successful drilling campaign in the Nockatunga oil field. Pretax income for the year is up $4.6 million over last year."
Exploration and dry hole costs for the 2008 quarter are down $1.2 million over the 2007 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 nine-month periods are shown in the following consolidated statements of operations:
MAGELLAN PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) THREE MONTHS ENDED NINE MONTHS ENDED March 31, March 31, 2008 2007 2008 2007 REVENUES: Oil sales $4,442,241 $2,305,562 $14,062,782 $8,458,469 Gas sales 4,433,188 3,879,437 13,195,352 11,773,787 Other production related revenues 660,634 663,624 1,973,843 1,853,616 Total revenues 9,536,063 6,848,623 29,231,977 22,085,872 COSTS AND EXPENSES: Production costs 1,801,975 1,535,250 6,425,232 5,132,656 Exploration and dry hole costs 334,651 1,568,280 3,072,242 4,541,543 Salaries and employee benefits 395,685 341,105 1,216,034 1,051,207 Depletion, depreciation and amortization 2,914,218 2,267,722 8,871,864 7,032,541 Auditing, accounting and legal services 215,394 114,106 773,497 438,115 Accretion expense 180,461 136,883 526,849 403,062 Shareholder communications 98,762 114,320 300,050 350,210 Loss (gain) on sale of field equipment 3,209 (7,772) (23,748) (7,966) Other administrative expenses 883,221 638,308 2,524,866 1,806,083 Total costs and expenses 6,827,576 6,708,202 23,686,886 20,747,451 Operating income 2,708,487 140,421 5,545,091 1,338,421 Interest income 500,121 437,780 1,559,200 1,208,693 Income before income taxes 3,208,608 578,201 7,104,291 2,547,114 Income tax provision (1,520,165) (292,274) (14,698,801) (1,238,958) NET INCOME (LOSS) 1,688,443 285,927 (7,594,510) 1,308,156 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 INCOME (LOSS) PER SHARE (BASIC AND DILUTED) $0.04 $0.01 $(0.18) $0.03
SOURCE Magellan Petroleum Corporation
Released May 16, 2008