UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
-------------------------------------------------
[ ] 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) 245-7664
................................................................................
(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 (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 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 November 10, 2000 was 25,108,226.
<PAGE>
MAGELLAN PETROLEUM CORPORATION
FORM 10-Q
SEPTEMBER 30 2000
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 Financial Statements Page
Consolidated balance sheets at September 30, 2000
and June 30, 2000 2
Consolidated statements of operations for the three months
ended September 30, 2000 and 1999 3
Consolidated statements of cash flows for the three months ended
September 30, 2000 and 1999 4
Consolidated statement of changes in stockholders' equity for the
three months ended September 30, 2000 5
Notes to consolidated financial statements 6
ITEM 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations 9
ITEM 3 Quantitative and Qualitative Disclosure About Market Risk 15
PART II - OTHER INFORMATION
ITEM 5 Other Information 16
ITEM 6 Exhibits and Reports on Form 8-K 16
Signature 17
<PAGE>
MAGELLAN PETROLEUM CORPORATION
FORM 10-Q
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
<TABLE>
September 30, June 30,
2000 2000
----------------------------------------------------
ASSETS (unaudited) (Note)
------
Current assets:
<S> <C> <C>
Cash and cash equivalents $13,020,774 $13,890,834
Accounts receivable 3,832,387 3,873,398
Marketable securities 1,467,278 1,581,730
Reimbursable development costs 172,941 138,077
Inventories 440,966 289,743
Other assets 249,662 265,462
------------- ------------
Total current assets 19,184,008 20,039,244
----------- -----------
Marketable securities 1,473,374 1,476,449
Property and equipment (successful efforts method) 41,659,718 45,766,007
Less accumulated depletion, depreciation and amortization (22,479,313) (24,025,493)
------------ ------------
Net property and equipment 19,180,405 21,740,514
----------- -----------
Other assets 654,287 719,510
-------------- --------------
Total assets $40,492,074 $43,975,717
=========== ===========
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,115,092 $ 3,024,604
Accrued liabilities 723,255 751,399
Income taxes payable 1,128,971 1,216,995
------------- --------------
Total current liabilities 3,967,318 4,992,998
------------- -------------
Long term liabilities:
Deferred income taxes 4,326,542 4,255,096
Reserve for future site restoration costs 889,925 934,790
------------ -------------
Total long term liabilities 5,216,467 5,189,886
----------- ------------
Minority interests 13,562,609 14,696,267
Stockholders' equity:
Common stock, par value $.01 per share:
Authorized 50,000,000 shares
Outstanding 25,108,226 shares 251,082 251,082
Capital in excess of par value 43,586,606 43,586,606
------------ ------------
Total capital 43,837,688 43,837,688
Accumulated deficit (16,523,570) (16,914,420)
Accumulated other comprehensive loss (9,568,438) (7,826,702)
-------------- --------------
Total stockholders' equity 17,745,680 19,096,566
------------ ------------
Total liabilities, minority interests and stockholders' equity $40,492,074 $43,975,717
=========== ===========
Note: The balance sheet at June 30, 1999 has been derived from the
audited consolidated financial statements at that date.
</TABLE>
<PAGE>
MAGELLAN PETROLEUM CORPORATION
FORM 10-Q
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
Three months ended
September 30,
2000 1999
-----------------------------------------
Revenues:
<S> <C> <C>
Oil sales $ 1,188,802 $ 812,258
Gas sales 2,159,587 2,444,359
Other production related revenues 263,506 188,166
Interest income 255,830 184,921
------------ ------------
3,867,725 3,629,704
----------- -----------
Costs and expenses:
Production costs 843,701 964,999
Exploration and dry hole costs 131,985 280,074
Salaries and employee benefits 442,355 627,287
Depletion, depreciation and
Amortization 674,359 633,696
Auditing, accounting and
legal services 101,836 156,687
Shareholder communications 28,422 31,301
Other administrative expenses 237,656 236,890
------------ ------------
2,460,314 2,930,934
----------- -----------
Income before income taxes and minority interests 1,407,411 698,770
Income tax provision 478,462 227,688
------------ ------------
Income before minority interests 928,949 471,082
Minority interests (538,099) (327,754)
------------- -------------
Net income $ 390,850 $ 143,328
=========== ===========
Average number of shares:
Basic 25,108,226 25,108,226
========== ==========
Diluted 25,108,226 25,151,889
========== ==========
Net income per share (basic and diluted) $.02 $.01
==== ====
</TABLE>
<TABLE>
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
Accumulated
Capital in other Comprehensive
Number Common excess of Accumulated comprehensive income
of shares stock par value deficit loss Total (loss)
--------- ----- --------- ------- ---- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C>
July 1, 2000 25,108,226 $251,082 $43,586,606 $(16,914,420) $(7,826,702) $19,096,566
Net income - - - 390,850 - 390,850 $390,850
Currency translation
adjustments - - - - (1,741,736) (1,741,736) (1,741,736)
-----------
Comprehensive loss $(1,350,886)
---------------------------------------------------------------------------------------------============
September 30, 2000 25,108,226 $251,082 $43,586,606 $(16,523,570) $(9,568,438) $17,745,680
========== ======== =========== ============= ============ ===========
</TABLE>
<PAGE>
MAGELLAN PETROLEUM CORPORATION
FORM 10-Q
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
Three months ended
September 30,
2000 1999
----------------------------------------
(Note)
Operating Activities:
<S> <C> <C>
Net income $ 390,850 $ 143,328
Adjustments to reconcile net income
to net cash provided by operating activities:
Depletion, depreciation and amortization 674,359 633,696
Restoration costs 76,002 101,069
Income tax expense 478,462 227,688
Minority interests 538,099 327,754
Increase (decrease) in operating assets and liabilities:
Accounts receivable (454,425) (1,216,468)
Reimbursable development costs (55,465) (88,783)
Other assets (9,975) (27,386)
Inventories (199,624) (102,551)
Accounts payable and accrued liabilities (502,631) (283,136)
Income taxes payable 67,370 8,903
------------- --------------------
Net cash provided by operating activities 1,003,022 (275,886)
----------- ---------------
Investing Activities:
Marketable securities sold (purchased) 117,527 (119,179)
Net additions to property and equipment (700,105) (512,307)
------------ ------------
Net cash used in investing activities (582,578) (631,486)
--------------- ------------
Effect of exchange rate changes on cash
and cash equivalents (1,290,504) (272,161)
-------------- ---------------
Net decrease in cash and cash equivalents (870,060) (1,179,533)
Cash and cash equivalents at beginning of year 13,890,834 13,380,699
------------ ------------
Cash and cash equivalents at end of period $13,020,774 $12,201,166
=========== ===========
</TABLE>
Note: Certain amounts for the 1999 period under Operating and Investing
Activities have been reclassified to conform to the classifications in
the 2000 period.
<PAGE>
MAGELLAN PETROLEUM CORPORATION
FORM 10-Q
PART I - FINANCIAL INFORMATION
September 30, 2000
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements include
the Company's 51% owned subsidiary, Magellan Petroleum Australia Limited
("MPAL") and have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included. All
such adjustments are of a normal recurring nature. Operating results for the
three month period ended September 30, 2000 are not necessarily indicative of
the results that may be expected for the year ending June 30, 2001. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-K for the year ended
June 30, 2000.
Note 2. Revenue Recognition
In December 1999, the plaintiffs (which include the Company) filed a
motion to have the Court of Queen's Bench in Canada direct that the working
interest parties in the Kotaneelee gas field make timely payments of all current
and future amounts due from their share of the Kotaneelee gas field revenues. In
April 2000, the trial court dismissed the motion pending the Court's ultimate
determination of the issues surrounding the Kotaneelee field carried-interest
account. The Alberta Court of Appeal in Canada recently stayed the Company's
appeal. See Item 5. -Other Information.
In view of the Courts' decisions, the Company does not intend to
accrue any additional revenues ($43,425 had been accrued in the fiscal year
ended June 30,2000) from the Kotaneelee gas field until collection of the
amounts due is reasonably assured.
Since March 2000, the operator of the Kotaneelee field has been
reporting the amount of the Company's share of net revenues being deposited in
escrow. The October 2000 report provided information for production during the
month of July 2000. Based on the reported data, the Company believes that the
total amount due the Company is $542,387, of which $179,835 has been deposited
in escrow.
<PAGE>
Item 1. Notes to Consolidated Financial Statements- (Cont'd)
Note 3. Income Taxes
Australia has enacted corporate tax rate reductions for the fiscal year
ending June 30, 2001 (36% to 34%) and for the fiscal year ending June 30, 2002
(34% to 30%) which will impact the Company's effective income tax rates in
future periods.
Note 4. Capital
The board of directors of the Company has recommended an increase
in the authorized common stock of the Company from 50,000,000 shares currently
authorized to 200,000,000 shares. The proposal will be considered at the Annual
Meeting of Stockholders which will be held on December 4, 2000.
Note 5. Depletion, depreciation and amortization
The operator of the Mereenie field is implementing an extensive program
for additional drilling and capital improvements. The estimated cost of these
proposed expenditures (MPAL share $8 million) will increase the amount of
depletion expense in the year 2001 and in subsequent years.
Note 6. Comprehensive Income
The only item included in accumulated other comprehensive loss is the
Company's foreign currency translation adjustments. Comprehensive (loss) during
the three months ended September 30, 2000 and 1999 was as follows:
<TABLE>
Three months ended September 30,
2000 1999
<S> <C> <C>
Net income $ 390,850 $ 143,328
Currency translation adjustments (1,741,736) (474,887)
----------- ---------
Comprehensive (loss) $(1,350,886) $(331,559)
============ ==========
</TABLE>
<PAGE>
Item 1. Notes to Consolidated Financial Statements- (Cont'd)
Note 7. Segment Information
The Company has two reportable segments, MPC and its subsidiary, MPAL.
Each company is in the same business, MPAL is also a publicly held company with
its shares traded on the Australian Stock Exchange. MPAL issues separate audited
consolidated financial statements and operates independently of MPC. Segment
information (in thousands) for the Company's two operating segments is as
follows:
<TABLE>
Three months ended September 30,
------------------------------ -------------------------------
2000 1999
------------------------------ -------------------------------
Revenues:
<S> <C> <C>
MPC $ 44 $ 41
MPAL 3,824 3,589
---------- ---------
Total consolidated revenues $ 3,868 $ 3,630
========= ========
Net income (loss):
MPC $ (173) $ (198)
MPAL 564 341
----------- ----------
Consolidated net income $ 391 $ 143
========== =========
</TABLE>
8. Capital and stock options
For the purpose of pro forma disclosures, the estimated fair value of
the stock options is expensed in the year of grant since the options are
immediately exercisable. The Company's pro forma information follows:
<TABLE>
Three months ended September 30,
--------------------------------
2000 1999
---- ----
Amount Per Share Amount Per Share
<S> <C> <C> <C> <C>
Net income as reported $391,000 $.02 $143,000 $.01
Stock option expense (21,000) - -
-------- ------ -------- -----
Pro forma net income $ 370,000 $.02 $143,000 $.01
========= ==== ======== ====
</TABLE>
<PAGE>
Item 1. Notes to Consolidated Financial Statements- (Cont'd)
Note 9. Subsequent Events
On November 8, 2000, MPAL reported that the Ealing-1 exploration well
in the Canterbury Basin of New Zealand was plugged and abandoned. MPAL funded
the cost of 20% of the well and the effect of the after tax write off to MPC,
which will be taken in the second quarter ending December 31, 2000, will be
approximately $125,000.
Note 10. Earnings per share
Earnings per common share is based upon the weighted average number of
common and common equivalent shares outstanding during the period. The Company's
basic and diluted calculations of EPS are the same for the three months ended
September 30, 2000 because the exercise of options is not assumed in calculating
diluted EPS, as the result would be anti-dilutive. The exercise price of the
outstanding stock options exceeded the average market price of the common stock
during the 2000 period.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Statements included in Management's Discussion and Analysis of
Financial Condition and Results of Operations 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.
The Company follows the successful efforts method of accounting for its
oil and gas operations; therefore, the results of operations may vary materially
from quarter to quarter. An active exploration program may result in greater
exploration and dry hole costs. Under this method, the cost of drilling a dry
hole is written off immediately.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
In December 1999, the plaintiffs (which include the Company) filed a
motion to have the Court of Queen's Bench in Canada direct that the working
interest parties in the Kotaneelee gas field make timely payments of all current
and future amounts due from their share of the Kotaneelee gas field revenues. In
April 2000, the trial court dismissed the motion pending the Court's ultimate
determination of the issues surrounding the Kotaneelee field carried-interest
account. The Alberta Court of Appeal in Canada recently stayed the Company's
appeal. See Item 5. -Other Information.
In view of the Courts' decisions, the Company does not intend to
accrue any additional revenues ($43,425 had been accrued in the fiscal year
ended June 30,2000) from the Kotaneelee gas field until collection of the
amounts due is reasonably assured.
Since March 2000, the operator of the Kotaneelee field has been
reporting the amount of the Company's share of net revenues being deposited in
escrow. The October 2000 report provided information for production during the
month of July 2000. Based on the reported data, the Company believes that the
total amount due the Company is $542,387, of which $179,835 has been deposited
in escrow.
The Company's Annual Report on Form 10-K for the year ended June 30,
2000 should be read for a detailed discussion of the Kotaneelee litigation.
Liquidity and Capital Resources
Consolidated
At September 2000, the Company on a consolidated basis had
approximately $16 million in cash and cash equivalents and marketable
securities.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
A summary of the major changes in cash and cash equivalents during the
three month period ended September 30, 2000 is as follows:
<TABLE>
<S> <C>
Cash and cash equivalents at beginning of period $13,891,000
Cash provided by operations 1,003,000
Net additions to property and equipment (700,000)
Sales of marketable securities 118,000
Effect of exchange rate changes (1,291,000)
-----------------
Cash and cash equivalents at end of period $13,021,000
===========
</TABLE>
As to MPC
At September 30, 2000, Magellan Petroleum Corporation ("MPC"), on an
unconsolidated basis, had working capital of approximately $1.9 million. MPC's
annual operating budget is approximately $700,000. During fiscal 2001, MPC has
budgeted approximately $200,000 for oil and gas exploration compared to the
$54,000 expended during fiscal 2000.
During November 2000, MPAL paid a dividend of A.$.05 per share. MPC's
share of this dividend was approximately $620,000, which was added to MPC's
working capital.
As to MPAL
At September 30, 2000, MPAL had working capital of approximately $13.4
million. MPAL has budgeted approximately $3 million for specific exploration in
fiscal 2001 as compared to the $2 million expended during fiscal 2000. However,
the total amount to be expended may be as much as $6 million depending on when
the various projects reach the drilling phase. 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.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Results of Operations
Three months ended September 30, 2000 vs. September 30, 1999
The components of consolidated net income for the comparable periods
were as follows:
<TABLE>
Three months ended
September 30,
2000 1999
------------------------------------------
<S> <C> <C>
MPC unconsolidated pretax (loss) $(172,796) $(197,525)
Share of MPAL pretax income 808,424 456,927
Share of MPAL income tax provision (244,778) (116,074)
------------ ------------
Consolidated net income $ 390,850 $ 143,328
========== ==========
Net income per share (basic and diluted) $.02 $.01
==== ====
</TABLE>
Revenues
Oil sales increased 46% in the current quarter to $1,189,000 from
$812,000 in 1999 because of an 82% increase in oil prices which was partially
offset by a 20% decrease in the number of units sold and the 12% Australian
foreign exchange rate decrease discussed below. Oil unit sales are expected to
continue to decline unless additional development wells are drilled to maintain
production levels. MPAL is dependent on the operator (65% control) of the
Mereenie field to maintain production. Oil unit sales (before deducting
royalties) in barrels ("bbls") and the average price per barrel sold during the
periods indicated were as follows:
<TABLE>
Three months ended September 30,
--------------------------------
2000 Sales 1999 Sales
---------------------------------------- -----------------------------------------
Average price Average price
bbls per bbl bbls per bbl
---- ------- ---- -------
<S> <C> <C> <C> <C>
Australia-Mereenie 39,092 A.$57.69 49,095 A.$31.59
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Gas sales decreased 12% to $2,160,000 in 2000 from $2,444,000 in 1999
primarily because of the 12% Australian foreign exchange rate decrease discussed
below and a 2% decrease in the volume of gas sold, which were partially offset
by a 3% increase in gas prices. The volumes in billion cubic feet ("bcf")
(before deducting royalties) and the average price of gas per thousand cubic
feet ("mcf") sold during the periods indicated were as follows:
<TABLE>
Three months ended September 30,
--------------------------------
2000 Sales 1999 Sales
----------------------------------------- ---------------------------------------
bcf Average price per mcf bcf Average price per mcf
--- --------------------- --- ---------------------
(A.$) (A.$)
Australia: Palm Valley
<S> <C> <C> <C> <C>
Alice Springs contract .279 3.03 .291 2.94
Darwin contract .511 2.03 .574 2.02
Australia: Mereenie
Darwin contact .604 2.28 .576 2.22
Other .309 3.17 .292 2.95
---- ----
Total 1.703 1.733
===== =====
</TABLE>
Other production related revenues increased 40% to $263,000 in 2000
from $188,000 in 1999. The primary reason for this increase was that MPAL's
share of gas pipeline tariffs increased 52% to $241,000 in 2000 from $159,000 in
1999.
Interest income increased 38% to $256,000 in 2000 from $185,000 in 1999
because additional funds were available for investment and interest rates were
higher.
Costs and Expenses
Production costs decreased 13% in 2000 to $844,000 from $965,000 in
1999 because of the 12% Australian foreign exchange rate decrease discussed
below.
Exploration and dry hole costs totaled $132,000 in 2000 compared to
$280,000 in 1999. The 2000 and 1999 costs related primarily to the exploration
work being performed on MPAL's offshore Western Australia properties.
Salaries and employee benefits decreased 30% from $627,000 in 1999 to
$442,000 in 2000. During August 1999, MPAL's General Manager retired and
received the balance of his unpaid salary of $228,000 under his employment
contract. The decrease was also partially offset by an increase in salaries
related to the President of MPC becoming a paid employee instead of a consultant
effective January 1, 2000 The Australian foreign exchange rate also decreased
12% during the 2000 period as discussed below.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (Cont'd)
Depletion, depreciation and amortization increased 6% from $634,000 in
1999 to $674,000 in 2000. There was an actual 20 % increase in DD&A which was
partially offset by the 12% decrease in the Australian exchange rate discussed
below. The operator of the Mereenie filed has implemented an extensive program
for additional drilling and capital improvements. The estimated cost of these
expenditures (MPAL share $8 million) increased the amount of depletion by
approximately $172,000 in the 2000 period. In addition, there was a 14% net
decrease in the reserve base used to calculate the depletion rate during the
2000 period which also increased DD&A expense.
Auditing, accounting and legal expenses decreased 35% from $157,000 in
1999 to $102,000 in 2000. Effective January 1, 2000 the President of MPC became
a paid employee instead of a consultant which reduced the amount of auditing,
accounting and legal expenses. In addition, there was a 12% decrease in the
Australian exchange rate as discussed below.
Shareholder communications decreased 9% from $31,000 in 1999 to $28,000
in 2000.
Other administrative expenses were approximately the same between the
periods: $238,000 in 2000 and 237,000 in 1999.
Income Taxes
Income tax expense increased 110% in 2000 to $478,000 from $228,000 in
1999. The components of tax income expense between MPC and MPAL were as follows:
<TABLE>
2000 1999
---- ----
<S> <C> <C>
Pretax consolidated income $ 1,407 $ 699
Losses not recognized:
MPC's operations 173 198
MPAL's foreign operations 13 18
Permanent differences (188) (282)
---------- ----------
Book taxable income $ 1,405 $ 633
========== ===========
Australian tax rate 34% 36%
====== ======
Australian income tax $ 478 $ 228
MPC income tax - -
---------- ----------
Consolidate income tax $ 478 $ 228
=========== ===========
Effective tax rate 34% 33%
=== ===
</TABLE>
Exchange Effect
The value of the Australian dollar relative to the U.S. dollar
decreased to $.5427 at September 30, 2000 compared to a value of $.5968 at June
30, 2000. This resulted in a $1,742,000 charge to the foreign currency
translation adjustments account for the three month period ended September 30,
2000. The 9% decrease in the value of the Australian dollar decreased the
reported asset and liability amounts in the balance sheet at September 30, 2000
from the June 30, 2000 amounts. The average exchange rate used to translate
MPAL's operations in Australia was $.5734 for the quarter ended September 30,
2000, which is a 12% decrease compared to the $.6501 rate for the quarter ended
September 30, 1999.
Item 3. Quantitative and Qualitative Disclosure About Market Risk
The Company does not have any significant exposure to market risk other
than as previously discussed regarding foreign currency risk, as the only market
sensitive instruments are its investments in marketable securities. At September
30, 2000, the carrying value of such investments (including those classified as
cash and cash equivalents) was approximately $15.8 million, which approximates
the fair value of the securities. Since the Company expects to hold the
investments to maturity, the maturity value should be realized.
<PAGE>
MAGELLAN PETROLEUM CORPORATION
PART II - OTHER INFORMATION
September 30, 1999
Item 5. Other Information
On November 8, 2000, MPAL reported that the Ealing-1
exploration well in the Canterbury Basin of New Zealand was plugged and
abandoned. MPAL funded the cost of 20% of the well and the effect of the after
tax write off to MPC, which will be taken in the second quarter ending December
31, 2000, will be approximately $125,000.
In the Kotaneelee litigation, the Alberta Court of Appeal has stayed
the Company's appeal of the trial court's refusal to direct the working interest
parties to make timely payments of all current and future amounts which are due
as the Company's share of the field's net revenues. The stay was granted on the
basis that the appeal is premature until a judgment is rendered on the entire
trial. The appeal may be reactivated in the event that the trial court
ultimately decides the issue in favor of the defendants. The Court of Appeal
also indicated that it might consider the issue separately from, and in advance
of, any other appeal which might be brought from the trial court's decision.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
On September 27, 2000, the Company filed a Current Report on
Form 8-K to report that the Annual Meeting of Stockholders will be held on
Thursday, December 4, 2000 at 1:00 P.M. at the Hyatt Regency Orlando
International Airport, 9300 Airport Boulevard, Orlando, Florida 32827.
<PAGE>
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: November 13, 2000 By /s/ James R. Joyce
--------------------------------------
James R. Joyce, President and
Chief Financial and Accounting Officer
