-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, KE8oYYCjSaIAolYblOr0FNyuNKnQO2U73ikXWB6+v/UIzdrDQwfvbTjQhAbZeHL+ 8vM8h0fcUx2vfqSZpJD7Hg== 0000061398-95-000003.txt : 19950517 0000061398-95-000003.hdr.sgml : 19950516 ACCESSION NUMBER: 0000061398-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAGELLAN PETROLEUM CORP /DE/ CENTRAL INDEX KEY: 0000061398 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 060842255 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05507 FILM NUMBER: 95537181 BUSINESS ADDRESS: STREET 1: 149 DURHAM RD STREET 2: OAKPARK UNIT 31 CITY: MADISON STATE: CT ZIP: 06443 BUSINESS PHONE: 2032458380 MAIL ADDRESS: STREET 1: 149 DURHAM RD STREET 2: OAKPARK UNIT 31 CITY: MADISON STATE: CT ZIP: 06443 FORMER COMPANY: FORMER CONFORMED NAME: MAGELLAN PETROLEUM CORP PANAMA DATE OF NAME CHANGE: 19671130 10-Q 1 10-Q 3/31/95 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 ------------------------------------ [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to____________________ Commission file number 1-5507 MAGELLAN PETROLEUM CORPORATION ............................................................................... (Exact name of registrant as specified in its charter) DELAWARE 06-0842255 ............................................................................... (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 149 Durham Road, Madison, Connecticut 06443 ............................................................................... (Address of principal executive offices) (Zip Code) 203-245-8380 ............................................................................... Registrant's telephone number, including area code) ............................................................................... (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |X| Yes |_| No The number of shares outstanding of the issuer's single class of common stock as of May 1, 1995 was 24,423,745. PART I - FINANCIAL INFORMATION Item 1. Financial Statements MAGELLAN PETROLEUM CORPORATION CONSOLIDATED BALANCE SHEET (unaudited)
March 31, June 30, 1995 1994 ASSETS Current assets: Cash and cash equivalents ............................ $ 7,492,100 $ 8,350,577 Accounts receivable .................................. 2,761,726 2,032,230 Reimbursable development costs ....................... 619,445 89,512 Inventories .......................................... 271,311 280,316 ------------ ------------ Total current assets ......................... 11,144,582 10,752,635 ------------ ------------ Property and equipment: Oil and gas properties (full cost method) ............ 61,881,892 57,573,344 Land, buildings and equipment ........................ 2,216,088 1,951,192 Field equipment ...................................... 1,532,521 1,508,135 Less accumulated depletion, depreciation and amortization ................................... (28,586,011) (25,655,085) ------------ ------------ 37,044,490 35,377,586 ------------ ------------ Other assets: Deferred tax asset ................................... -- -- Other assets ......................................... 302,882 300,490 ------------ ------------ $ 48,491,954 $ 46,430,711 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ..................................... $ 1,853,952 $ 1,508,436 Accrued liabilities .................................. 776,858 684,708 ------------ ------------ Total current liabilities .................... 2,630,810 2,193,144 ------------ ------------ Long term liabilities and minority interests: Deferred income taxes ................................ 8,332,135 6,938,586 Reserve for future restoration costs ................. 2,239,752 2,218,422 Minority interests ................................... 16,475,307 16,764,441 ------------ ------------ 27,047,194 25,921,449 ------------ ------------ Stockholders' equity: Common stock, par value $.01 per share: Authorized 50,000,000 shares Outstanding 24,423,745 and 24,387,107 shares, respectively ...................................... 244,237 243,871 Capital in excess of par value ....................... 43,010,451 42,982,694 ------------ ------------ 43,254,688 43,226,565 Deficit .............................................. (20,178,756) (20,436,827) Accumulated translation adjustments .................. (4,261,982) (4,473,620) ------------ ------------ 18,813,950 18,316,118 ------------ ------------ $ 48,491,954 $ 46,430,711 ============ ============
PART I - FINANCIAL INFORMATION Item 1. Financial Statements MAGELLAN PETROLEUM CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
Three months ended Nine months ended March 31, March 31, ---------- --------- 1995 1994 1995 1994 ----- ----- ----- ---- Revenues: Oil sales ............................ $ 1,527,299 $ 1,420,205 $ 4,381,803 $ 4,280,992 Gas sales ............................ 2,046,455 1,760,725 5,839,788 5,093,368 Interest and other income ............ 367,244 153,283 830,434 615,762 -------------- -------------- -------------- -------------- 3,940,998 3,334,213 11,052,025 9,990,122 -------------- -------------- -------------- -------------- Costs and expenses: Production costs ..................... 953,538 973,028 2,719,812 2,790,864 Salaries and employee benefits ....... 457,675 266,220 1,143,530 926,500 Depletion, depreciation and amortization ....................... 1,003,577 891,970 2,776,080 2,599,961 Auditing, accounting and legal services ..................... 132,379 141,196 555,607 534,649 Shareholder communications ........... 25,469 89,687 140,359 152,084 Other ................................ 175,854 291,761 633,772 728,494 Interest ............................. 7,330 7,210 22,480 21,082 Expenses (recovery) related to Sagasco tender offer and litigation ........ -- (61,171) -- 423,493 -------------- -------------- -------------- -------------- 2,755,822 2,599,901 7,991,640 8,177,127 -------------- -------------- -------------- -------------- Income before minority interests and income taxes ................... 1,185,176 734,312 3,060,385 1,812,995 Minority interests ................... 652,777 450,197 1,851,058 1,474,192 -------------- -------------- -------------- -------------- Income (loss) before income taxes .... 532,399 284,115 1,209,327 338,803 Income tax provision ................. 239,750 202,306 951,256 835,239 -------------- -------------- -------------- -------------- Net income (loss) ...................... $ 292,649 $ 81,809 $ 258,071 $ (496,436) ============== ============== ============== ============== Average number of shares outstanding ........................ 24,408,745 24,381,890 24,398,604 24,381,890 ============== ============== ============== ============== Net income (loss) per share .......... $ .01 -- $ .01 $ (.02) ============== ============== ============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) Capital in Accumulated Number Common excess of translation of shares stock par value Deficit adjustments Total June 30, 1994 ............. 24,387,107 $ 243,871 $ 42,982,694 $(20,436,827) $ (4,473,620) $ 18,316,118 Net income .............. -- -- -- 258,071 -- 258,071 Currency translation ............... -- -- -- -- 211,638 211,638 adjustments Common stock issued to directors ............ 16,638 166 12,957 -- -- 13,123 Exercise of stock options 20,000 200 14,800 15,000 ------------ ------------ ------------ ------------ ------------ ------------ March 31, 1995 ............ 24,423,745 $ 244,237 $ 43,010,451 $(20,178,756) $ (4,261,982) $ 18,813,950 ============ ============ ============ ============ ============ ============
PART I - FINANCIAL INFORMATION Item 1. Financial Statements MAGELLAN PETROLEUM CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
Nine months ended March 31, 1995 1994 Operating Activities: Net income (loss) ........................................ $ 258,071 $ (496,436) Adjustments to reconcile net loss to net cash provided by operating activities: Depletion, depreciation and amortization .............. 2,776,080 2,599,961 Deferred income taxes ................................. 720,654 977,260 Minority interests .................................... 1,851,058 1,474,192 Increase (decrease) in operating assets and liabilities: Accounts receivable ................................... (720,157) (117,785) Reimbursable development costs ........................ (528,357) 474,674 Other assets .......................................... (1,050) (68,505) Inventories ........................................... 10,232 (28,693) Accounts payable and accrued liabilities ......................................... 448,224 (2,085,728) ------------- ------------- Net cash provided by operating activities ................. 4,814,755 2,728,940 ------------- ------------- Investing Activities: Net additions to property and equipment ................. (4,170,447) (3,228,559) ------------- ------------- Net cash used in investing activities ................... (4,170,447) (3,228,559) ------------- ------------- Financing Activities: Dividends to MPAL minority shareholders ................. (1,673,345) (1,447,208) Exercise of MPC stock options and stock issued for directors' fees ..................................... 28,123 -- ------------- ------------- Net cash used in financing activities ................... (1,645,222) (1,447,208) ------------- ------------- Effect of exchange rate changes on cash and cash equivalents .................................... 142,437 138,346 ------------- ------------- Net decrease in cash and cash equivalents ...................................... (858,477) (1,808,481) Cash and cash equivalents at beginning of year ..................................... 8,350,577 8,981,872 ------------- ------------- Cash and cash equivalents at end of period ......................................... $ 7,492,100 $ 7,173,391 ============= =============
PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 1. Financial Statements - Notes The information for the three and nine month periods ended March 31, 1995 and 1994, is unaudited but includes all adjustments which the Company considers necessary for a fair presentation of the results of operations for those periods. All adjustments are of a normal recurring nature. The consolidated financial statements include the Company's 50.7% owned subsidiary, Magellan Petroleum Australia Limited ("MPAL"). Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Consolidated At March 31, 1995, the Company on a consolidated basis had approximately $7,492,000 of cash and cash equivalents. A summary of the major changes in cash items during the period is as follows: Cash and cash equivalents at beginning of year $8,351,000 Cash provided by operations 4,815,000 Net additions to property and equipment (4,170,000) Cash dividends paid to MPAL minority shareholders (1,673,000) Other 169,000 ---------- Cash and cash equivalents at end of period $7,492,000 ========== As to the Company (unconsolidated) At March 31, 1995, Magellan Petroleum Corporation ("MPC"), on an unconsolidated basis, had cash and cash equivalents of approximately $1,686,000. MPC's normal annual operating budget is approximately $800,000 and its current cash position and its future dividends from MPAL should be adequate to meet its current cash requirements. MPC also has available a $1.5 million bank line of credit. MPC has in the past invested and may in the future invest substantial portions of its available funds to maintain its majority interest in MPAL. PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) MPC is also a 10% participant in MPAL's Baca County, Colorado drilling project (MPAL 90%). MPC's committment for drilling the initial three wells in the project is approximately $150,000. As to MPAL At March 31, 1995, MPAL had cash and cash equivalents of approximately $5,806,000 MPAL has budgeted approximately $1.0 million for exploration in fiscal 1995 in comparison to the $1.6 million incurred during fiscal 1994. The current composition of MPAL's oil and gas reserves are such that the Company's future revenues in the long term are expected to be derived from the sale of gas in Australia. MPAL expects to fund its exploration and development costs through its cash flow from Australian operations, and if necessary, any additional requirements from its A.$10 million bank line of credit. Results of Operations Three month period ended March 31, 1995 vs. March 31, 1994. The Company had consolidated net income of $292,649 for the three month period ended March 31, 1995 compared to net income of $81,809 for the comparable 1994 period. The components of consolidated net income for the comparable periods were as follows:
Three month period ended March 31, 1995 1994 MPC unconsolidated pretax loss $(137,794) $(178,092) MPC income tax expense (311) - Share of MPAL pretax income 670,193 462,207 Share of MPAL income tax provision (239,439) (202,306) ---------- -------- Consolidated net income $ 292,649 $ 81,809 ========= ========= Net income per share $.01 $ - ==== ====
PART I FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Oil and Gas Sales Oil and gas sales (in thousands) by geographic location for the comparable periods were as follows:
Three month period ended March 31, 1995 1995 1994 1994 Sales % Sales % Australia $3,418 96 $3,039 96 United States 156 4 142 4 ------- ----- ------- ----- $3,574 100 $3,181 100 ====== ==== ====== ===
Oil Sales Oil sales increased by 8% in fiscal 1995. Oil sales in Australia increased because of an 11% increase in oil prices which were partially offset by a 3% decrease in the number of units sold. This increase was also assisted by a 6% increase in the value of the Australian dollar. MPAL's share of oil sales in the United States decreased as the number of units sold decreased 18% with a 25% increase in oil prices. Oil unit sales in barrels ("bbls"), the average price per barrel sold and the average daily production during the periods indicated were as follows:
Three month period ended March 31, 1995 Sales 1994 Sales --------------------------------------------------------------------------------------- Average Average Average Daily Average Daily price Production price Production bbls per bbl bbl bbls per bbl bbl Australia - Mereenie 83,896 A.$24.05 915 86,656 A.$21.74 933 United States - Navajo Venture 9,164 U.S.$17.49 98 11,125 U.S.$14.03 126
PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Gas Sales Gas sales increased 16%. Gas sales in Australia increased with a 5% increase in the volumes of gas sold, a 6% increase in the value of the Australian dollar and modest price increases. Total gas volumes are expected to continue at least at current levels in the short term. The volumes in billion cubic feet ("bcf"), (before deducting royalties), the average price of gas per thousand cubic feet ("mcf") sold and the average daily production during the periods indicated were as follows:
Three month period ended March 31, 1995 Sales 1994 Sales Average Average Daily Daily Price Production Price Production bcf per mcf mmcf bcf per mcf mmcf Australia: Palm Valley Alice Springs contract .268 A.$2.77 3.0 .268 A.$2.70 2.4 Darwin contract .664 A.$1.98 7.4 .860 A.$1.97 10.3 Mereenie .551 A.$1.78 6.1 .284 A.$1.48 2.8 ---- --- ---- ---- Total 1.483 16.5 1.412 15.5 ===== ==== ===== ====
Interest and other income Interest and other income increased 140% in 1995. The increase is attributable to more funds invested at higher rates. PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Costs and Expenses Production costs decreased 2%. The 2% decrease in Australia relates to a reduction in costs at Palm Valley. Production costs by geographic area and the relationship to oil and gas sales (in thousands) is as follows:
Three month period ended March 31, 1995 1995 1995 1994 1994 1994 Production % % Production % % costs total sales sales by country costs total sales sales by country Australia $895 25 26 $912 29 30 United States 59 2 38 61 2 43 ----- ----- ---- -- $954 27 $973 31 ==== ==== ==== ==
Salaries and employee benefits increased 72% primarily because of increased compensation costs in Australia and a 6%increase in the value of the Australian dollar. Depreciation, depletion and amortization increased 13% in 1995. The costs in Australia increased because of the increase in the value of the Australian dollar and an increase in capitalized costs of oil and gas properties. The U.S. amounts have decreased because of an increase in the remaining oil and gas reserves. The following table is a summary of the depreciation, depletion and amortization expense (in thousands) by geographic area:
Three month period ended March 31, 1995 1994 % Change Australia $768 $612 25 United States 236 280 (16) --- --- $1,004 $892 ====== ====
Auditing, accounting and legal services decreased 6% because of cost saving measures. PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Shareholder communications decreased 72% primarily because of a timing difference in the holding of the Annual Meeting of Stockholders between the two periods and cost savings measures. Other expenses decreased 40% because MPAL was able to recover a greater portion of its overhead as operator of the Palm Valley Joint Venture. Interest expense is the cost of maintaining MPC's and MPAL's lines of credit. Income Taxes A reconciliation of the income tax provisions (in thousands) for the periods is as follows:
Three month period ended December 31, 1995 1994 Pretax consolidated income $532 $284 Losses not recognized: Company's U.S. operations 138 178 MPAL's U.S. operations 91 149 Permanent differences (34) 2 ------ ----- Book taxable income $727 $613 ==== ==== Australian tax rate 33% 33% ===== === MPC income tax provision $ - $ - MPAL deferred income tax provision 240 202 ----- ---- Consolidated $ 240 $202 ===== ====
Exchange Effect The value of the Australian dollar relative to the U.S. dollar decreased to $.7345 at March 31, 1995 compared to the value of $.7756 at December 31, 1994. This resulted in a $854,000 charge to the accumulated translation adjustments account for the three month period ended March 31, 1995. The average exchange rate used to translate MPAL's operations in Australia was $.7483 for the quarter ended March 31, 1995, which is a 6% increase compared to the $.7078 rate for the quarter ended March 31, 1994. PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Results of Operations Nine month period ended March 31, 1995 vs. March 31, 1994. The Company had consolidated income of $258,071 for the nine month period ended March 31, 1995 compared to a net loss of $496,436 for the comparable 1994 period. The components of consolidated net loss for the comparable periods were as follows:
Nine month period ended March 31, 1995 1994 MPC unconsolidated pretax loss $ (691,115) $(1,174,719) MPC income tax expense (260,409) (222,900) Share of MPAL pretax income 1,900,442 1,513,522 Share of MPAL income tax provision (690,847) (612,339) ---------- ----------- Consolidated net income (loss) $ 258,071 $ (496,436) ========= ============ Net income (loss) per share $.01 $(.02) ==== ======
Oil and Gas Sales Oil and gas sales (in thousands) by geographic location for the comparable periods were as follows:
Nine month period ended March 31, 1995 1995 1994 1994 Sales % Sales % Australia $9,744 95 $8,844 94 United States 478 5 530 6 ------- ---- ------ -------- $10,222 100 $9,374 100 ======= === ====== ===
PART I FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Oil Sales Oil sales increased 2% in fiscal 1995. Oil sales in Australia increased 4% despite a 4% decrease in oil prices and a 1% decrease in the number of units sold because of a 10% increase in the value of the Australian dollar. MPAL's share of oil sales in the United States decreased 11% because the number of units sold decreased 22%, however, a 15% increase in oil prices partially offset this decline in sales. Oil unit sales in barrels ("bbls"), the average price per barrel sold and the average daily production during the periods indicated were as follows:
Nine month period ended March 31, 1995 Sales 1994 Sales Average Average Average Daily Average Daily price Production price Production bbls per bbl bbl bbls per bbl bbl Australia - Mereenie 241,139 A.$23.41 880 243,944 A.$24.32 890 United States - Navajo Venture 28,359 U.S.$17.31 104 36,359 U.S.$15.01 133
Gas Sales Gas sales increased 15%. Gas sales in Australia increased because of a 1% increase in the volumes of gas sold, a 10% increase in the value of the Australian dollar and modest price increases. Total gas volumes are expected to continue at least at current levels in the short term. The volumes in billion cubic feet ("bcf"), (before deducting royalties), the average price of gas per thousand cubic feet ("mcf") sold and the average daily production during the periods indicated were as follows:
Nine month period ended March 31, ------------------------------------------------------------------ 1995 Sales 1994 Sales ----------------------------------------------------------------------------- Average Average Daily Daily Price Production Price Production bcf per mcf mmcf bcf per mcf mmcf Australia: Palm Valley Alice Springs contract .767 A.$2.75 2.8 .727 A.$2.69 2.4 Darwin contract 2.254 A.$1.97 8.2 2.756 A.$1.97 10.3 Mereenie 1.307 A.$1.72 4.8 .785 A.$1.40 2.8 ----- ----- ---- ---- Total 4.328 15.8 4.268 15.5 ===== ===== ==== ====
PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Interest and other income Interest and other income increased 35% in 1994. The increase is attributable to higher interest income with more funds invested at higher rates. Costs and Expenses Production costs decreased 3%. Australian costs were relatively unchanged. U.S. costs have declined because production decreased and field operations were scaled back during the current period. Production costs (in thousands) by geographic area and the relationship to oil and gas sales is as follows:
Nine period ended March 31, 1995 1995 1995 1994 1994 1994 Production % % Production % % costs total sales sales by country costs total sales sales by country Australia $2,582 25 26 $2,571 27 29 United States 138 1 29 220 3 42 ------- ---- ------- -- $2,720 26 $2,791 30 ======= ==== ====== ==
Salaries and employee benefits increased 23% primarily because of a 10% increase in the value of the Australian dollar and an increase in compensation levels. Depreciation, depletion and amortization increased 7% in 1995. The costs in Australia increased because of the 10% in the value of the Australian dollar and an increase in capitalized costs of oil and gas properties. The U.S. amounts have decreased because of an increase in the remaining oil and gas reserves. The following table is a summary of the depreciation, depletion and amortization expense (in thousands) by geographic area:
Nine month period ended March 31, 1995 1994 Australia $2,155 $1,755 United States 621 845 ------ ------- $2,776 $2,600 ====== ======
PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Shareholder communications decreased 8% primarily because of cost saving measures. Other expenses decreased 13% because MPAL was able to recover a greater portion of its overhead as operator of the Palm Valley Joint Venture. Interest expense is the cost of maintaining MPC's and MPAL's lines of credit. Expenses related to Sagasco tender offer and litigation were all reimbursed under the Company's D&O insurance policy during the first quarter of fiscal 1995. All the U.S. related litigation has been terminated. Income Taxes A reconciliation of the income tax provisions (in thousands) for the periods is as follows:
Nine month period ended March 31, 1995 1994 Pretax consolidated income $1,209 $ 339 Losses not recognized: MPC's U.S. operations 691 1,175 MPAL's U.S. operations 193 307 Permanent differences 1 34 -------- ------- Book taxable income $2,094 $1,855 ====== ====== Australian tax rate 33% 33% ==== === MPC income tax provision $260 $ 223 MPAL deferred income tax provision 691 612 ----- ------ Consolidated $ 951 $ 835 ===== ======
PART I - FINANCIAL INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd) Exchange Effect The value of the Australian dollar relative to the U.S. dollar increased to $.7345 at March 31, 1995 compared to the value of $.7287 at June 30, 1994. This resulted in a $212,000 credit to the accumulated translation adjustments account for the nine month period ended March 31, 1995. The 1% increase in the value of the Australian dollar increased the reported asset and liability amounts in the balance sheet at March 31, 1995 from the June 30, 1994 amounts. The average exchange rate used to translate MPAL's operations in Australia was $.7477 for the nine months ended March 31, 1995, which is a 10% increase compared to the $.6813 rate for the March 31, 1994 period. PART II - OTHER INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 4. Submission of Matters to a Vote of Security Holders. (a) On January 13, 1995, the Company held its Annual Meeting of Stockholders. (b) Directors Walter McCann and C. Dean Reasoner were reelected for additional three year terms. Directors Dennis D. Benbow, Benjamin W. Heath, G. Gordon Gibson and James R. Joyce continued in office. (c) 1. The stockholder proposal to amend Article Twelfth was not approved. The proposal was not approved because any matter to be voted upon at any meeting must be approved, not only by a majority of the shares voted at such meeting, but also by a majority of the stockholders present in person or by proxy and entitled to vote. The vote was as follows: Number of Number of Shares Voted Shareholders Voting For 5,290,896 1,348 Against 4,590,141 2,364 Abstain 349,066 165 2. The stockholder proposal for a stock repurchase program was not approved. The proposal was not approved because any matter to be voted upon at any meeting must be approved, not only by a majority of the shares voted at such meeting, but also by a majority of the stockholders present in person or by proxy and entitled to vote. The vote was as follows: Number of Number of Shares Voted Shareholders Voting For 5,696,941 1,406 Against 4,240,780 2,310 Abstain 292,382 161 PART II OTHER INFORMATION MAGELLAN PETROLEUM CORPORATION March 31, 1995 Item 4. Submission of Matters to a Vote of Security Holders (Cont'd). (c) 3. The stockholder proposal to amend the stock option plan was not approved. The proposal was not approved because any matter to be voted upon at any meeting must be approved, not only by a majority of the shares voted at such meeting, but also by a majority of the stockholders present in person or by proxy and entitled to vote. The vote was as follows: Number of Number of Shares Voted Shareholders Voting For 5,572,858 1,443 Against 4,418,023 2,276 Abstain 239,222 158 Item 5. Other Information. The gas and liquids treatment plant upgrade at the Mereenie field is now fully operational and the plant is scheduled to be officially commissioned on May 29, 1995. The plant is expected to increase the daily oil production by approximately 100 bpd. On April 25, 1995, MPC and MPAL commenced an initial three well exploration drilling program on its acreage in Baca County, Colorado. MPC and MPAL had a 9% and a 79% net working interest, respectively in 70,000 net acres with 25 prospects that have been identified. On May 10, 1995, the Australian government issued the budget for 1995/1996 fiscal year which includes a proposal to increase the corporate income tax rate from 33% to 36%. Item 6. Exhibits and Reports on Form 8-K On January 18, 1995, the Company filed Form 8-K to announce that the Board of Directors authorized the open market repurchase of up to 200,000 shares of the Company's common stock. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized: MAGELLAN PETROLEUM CORPORATION Registrant Date: May 12, 1995 By /s/ James R. Joyce --------------------- James R. Joyce, President and Chief Financial and Accounting Officer EX-27 2 FDS --
5 (Replace this text with the legend) 0000061398 MAGELLAN PETROLEUM CORPORATION 1 U.S. DOLLARS 9-MOS JUN-30-1995 JUL-01-1994 MAR-31-1995 1 7492100 0 3381171 0 271311 11144582 65630501 28586011 48491954 2630810 0 244237 0 0 18569713 48491954 10221591 11052025 0 7991640 1851058 0 22480 1209327 951256 258071 0 0 0 258071 .01 .01
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