Magellan Receives Post-Completion Payment for Sale of Onshore Australia Assets

DENVER, CO--(Marketwired - April 17, 2014) - Magellan Petroleum Corporation ("Magellan" or the "Company") (NASDAQ: MPET) announced today that on April 15, 2014, it received the final AUD $5 million payment contemplated by the Share Sale and Purchase Deed (the "Sale Deed") entered into with Central Petroleum Limited ("Central") (ASX: CTP) for the sale of the Company's onshore Australia assets (the "Transaction"). Previously, the Company announced the completion of the Transaction on March 31, 2014. 

In total, the Company has now received from Central AUD $20 million in cash and 39.5 million newly issued shares of Central stock, equivalent to an approximate 11% ownership interest. Magellan is now Central's single largest shareholder. Based on the Central closing price on April 16, 2014, this stock represents a total value of AUD $20.9 million, or a AUD $5.9 million increase over the issuance value of AUD $15 million as determined on the Execution Date. 

J. Thomas Wilson, President and CEO of the Company, stated: "Due to the substantial appreciation of Central's share price since announcing this Transaction in February, the Company at this point has realized effectively over AUD $40 million in value for the sale of its onshore Australia assets. With the AUD $20 million in cash proceeds, we believe we have sufficient funds to complete our CO₂-enhanced oil recovery pilot at Poplar and drill exploratory wells in the UK to establish the value of these projects. Therefore, we intend to continue holding our position in Central's stock, which we believe represents an opportunity for further substantial appreciation. With over 70 million acres under permit onshore Australia, several active exploration programs, and current or near term production from Palm Valley, Dingo, and Surprise, we believe that Central will continue to find opportunities to increase value for its shareholders. For instance, on April 15, 2014, Central announced that its Mount Kitty #1 Well, which is located along the southern flank of the Amadeus Basin and is operated by Santos under a farm-out agreement, has tested natural gas and helium. While further time is needed to evaluate this prospect, this announcement is very encouraging and speaks to the upside value potential of our ownership stake."