Magellan Petroleum Corp. (MPET, Financial) filed Quarterly Report for the period ended 2010-09-30.
Magellan Petroleum Corp. has a market cap of $112.6 million; its shares were traded at around $2.15 with and P/S ratio of 4. MPET is in the portfolios of Jim Simons of Renaissance Technologies LLC.
An example of our growth efforts on an accretive basis would be the YEP Securities Purchase Agreement (see Note 2) that is expected to be implemented on or before December 25, 2010, with the proceeds to be used to cover operating and financing expenditures associated with the purchase by MPAL of the 40% interest in the Evans Shoal. The placement involves the issuance and sale of up to 5.2 million new shares of the Companys common stock to YEP and/or one or more of its affiliates in return for $3.00 per new share issued and sold. The $3.00 share price for this transaction is indicative of our largest stockholders confidence in the Evans Shoal acquisition and our other projects, as the Company continues with its efforts to build substantial stockholder value. However, the Purchase Agreement provides that the obligations of YEP to complete the purchase of the Shares are subject to closing conditions, including a condition that the progress and status of the Evans Shoal transaction shall be satisfactory to YEP (see Note 2).
At September 30, 2010, the Company on a consolidated basis had approximately $28.2 million of cash and cash equivalents and $6.4 million in marketable securities. The Company considers cash equivalents to be short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of change in interest rates. Cash balances were $11.8 million as of September 30, 2010 and the remaining $16.4 million was held in time deposit accounts in several Australian banks that have terms of 90 days or less. National Australia Bank, Ltd. (NAB) holds 24% of the cash and cash equivalent balance.
When considering our liquidity and capital resources, we consider cash and cash equivalents and marketable securities together since all of these amounts are available to fund operating, exploration and development activities. The balance of cash and cash equivalents and marketable securities increased $1 million during the three months ended September 30, 2010 compared to a $9.1 million increase in those balances during the three months ended September 30, 2009. The Company received stock issuance proceeds of $10 million in July 2009, which significantly increased cash and cash equivalents and marketable securities in the prior year.
At September 30, 2010, MPAL had working capital of $27.4 million and has budgeted approximately (AUS) $4.9 million for specific exploration projects in fiscal year 2011 as compared to the (AUS) $421,000 expended during the three months ended September 30, 2010. Despite no SEC defined reserves, MPALs future revenues in the long-term are expected to be derived from the sale of oil and gas in Australia. MPALs current contract for the sale of Palm Valley gas will expire during fiscal year 2012. The price of gas under the Palm Valley gas contract is adjusted quarterly to reflect changes in the Australian Consumer Price Index. Future oil revenues will be impacted by any volatility in the world price for crude oil. MPAL will strive to optimize operating expenses with any reductions in revenues.
At September 30, 2010, Nautilus has debt comprising a note payable of $550,720 and short term borrowings of $625,000 on a letter of credit (LOC), both issued by a bank.
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Magellan Petroleum Corp. has a market cap of $112.6 million; its shares were traded at around $2.15 with and P/S ratio of 4. MPET is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the quarter, Magellan recorded a net loss of $3.4 million on total revenues of $3.7 million. The following items impacted our first quarter earnings and cash flow for fiscal year 2011 as compared to 2010:An example of our growth efforts on an accretive basis would be the YEP Securities Purchase Agreement (see Note 2) that is expected to be implemented on or before December 25, 2010, with the proceeds to be used to cover operating and financing expenditures associated with the purchase by MPAL of the 40% interest in the Evans Shoal. The placement involves the issuance and sale of up to 5.2 million new shares of the Companys common stock to YEP and/or one or more of its affiliates in return for $3.00 per new share issued and sold. The $3.00 share price for this transaction is indicative of our largest stockholders confidence in the Evans Shoal acquisition and our other projects, as the Company continues with its efforts to build substantial stockholder value. However, the Purchase Agreement provides that the obligations of YEP to complete the purchase of the Shares are subject to closing conditions, including a condition that the progress and status of the Evans Shoal transaction shall be satisfactory to YEP (see Note 2).
At September 30, 2010, the Company on a consolidated basis had approximately $28.2 million of cash and cash equivalents and $6.4 million in marketable securities. The Company considers cash equivalents to be short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of change in interest rates. Cash balances were $11.8 million as of September 30, 2010 and the remaining $16.4 million was held in time deposit accounts in several Australian banks that have terms of 90 days or less. National Australia Bank, Ltd. (NAB) holds 24% of the cash and cash equivalent balance.
When considering our liquidity and capital resources, we consider cash and cash equivalents and marketable securities together since all of these amounts are available to fund operating, exploration and development activities. The balance of cash and cash equivalents and marketable securities increased $1 million during the three months ended September 30, 2010 compared to a $9.1 million increase in those balances during the three months ended September 30, 2009. The Company received stock issuance proceeds of $10 million in July 2009, which significantly increased cash and cash equivalents and marketable securities in the prior year.
At September 30, 2010, MPAL had working capital of $27.4 million and has budgeted approximately (AUS) $4.9 million for specific exploration projects in fiscal year 2011 as compared to the (AUS) $421,000 expended during the three months ended September 30, 2010. Despite no SEC defined reserves, MPALs future revenues in the long-term are expected to be derived from the sale of oil and gas in Australia. MPALs current contract for the sale of Palm Valley gas will expire during fiscal year 2012. The price of gas under the Palm Valley gas contract is adjusted quarterly to reflect changes in the Australian Consumer Price Index. Future oil revenues will be impacted by any volatility in the world price for crude oil. MPAL will strive to optimize operating expenses with any reductions in revenues.
At September 30, 2010, Nautilus has debt comprising a note payable of $550,720 and short term borrowings of $625,000 on a letter of credit (LOC), both issued by a bank.
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