DENVER, May 20, 2013 /PRNewswire/ -- Magellan
Petroleum Corporation ("Magellan" or the "Company") (NASDAQ: MPET)
today announced that on May 17, 2013
(the "Closing Date"), the Company closed the transaction
contemplated by the Series A Convertible Preferred Stock Purchase
Agreement (the "Series A Purchase Agreement") with One Stone
Holdings II LP, an affiliate of One Stone Energy Partners LP
(collectively, "One Stone"), a
New York based private equity firm
focused on investments in the oil and gas industry. The Company and
One Stone had previously entered
into this agreement on May 10,
2013.
Pursuant to the terms of the Series A Purchase Agreement, on the
Closing Date, the Company received $23.5
million in exchange for 19,239,734 shares of Series A
Convertible Preferred Stock issued to One
Stone. As part of the transaction, One Stone also appointed two new members to
Magellan's Board of Directors. Effective as of the Closing
Date, Robert Israel and Vadim Gluzman, each a managing member of
One Stone, joined Magellan's
board.
Prior to One Stone, Mr. Israel
was a partner at Compass Advisers LLP. Prior to joining Compass in
2000, he was the head of the energy department of Schroder &
Co., Inc. from 1991 to 2000. Mr. Israel holds an M.B.A. from
Harvard Business School and a B.A. from
Middlebury College. He is currently on
the board of W&T Offshore Inc. and several private
energy-related companies.
Prior to One Stone, Mr. Gluzman
served as a vice president of OAO LUKOIL and President of Lukoil
Americas Holding. Prior to joining Lukoil in 1997, he worked as a
chemical engineer for Teknor Apex Corporation and at the Moscow
Institute of Plastics.
Mr. Gluzman holds a Master's degree in chemical technologies
from the Moscow Institute of Chemical Technologies.
J. Robinson West, Chairman of the
Board, stated, "We are pleased to welcome Messrs. Israel and
Gluzman to our Board. They both bring to the Board extensive
and world-class experience in the oil and gas industry, both
domestic and international. They will complement well our
Board's current experience and skill set and will substantially
enrich the Board's dialogue and strategic planning."
Bob Israel, Managing Member of
One Stone, stated, "One Stone's focus is on identifying
"underdeveloped assets" in the natural resources sector. We
believe that the asset portfolio held by Magellan is an excellent
opportunity to combine One Stone's
capital with high potential, underdeveloped assets. In
particular, the Poplar CO2-EOR project fits perfectly
with our strategy.
We have great confidence in the management and look forward to
working with the Board of Directors of Magellan to increase the
value of the Company for all shareholders."
The securities described herein have not been registered under
the U.S. Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States absent registration with the
U.S. Securities and Exchange Commission (the "SEC") or an
applicable exemption from such registration requirements.
CAUTIONARY INFORMATION ABOUT FORWARD LOOKING
STATEMENTS
Statements in this press release that are not historical in
nature are intended to be, and are hereby identified as,
forward-looking statements for purposes of the Private Securities
Litigation Reform Act of 1995. The words "believe," "expect,"
"intend," "will," and similar expressions are intended to identify
forward looking statements. These statements about Magellan
may relate to its businesses, prospects, and other matters that
involve a number of risks and uncertainties that may cause actual
results to differ materially from the results expressed or implied
in the forward-looking statements. Among these risks and
uncertainties are: (i) whether Messrs. Israel and Guzman will have
a material positive impact on the governance of Magellan's Board of
Directors; and (ii) other risks and uncertainties set forth in the
"Risk Factors" sections of the Company's Annual Report on Form 10-K
for the fiscal year ended June 30,
2012, and subsequent Quarterly Reports on Form 10-Q filed
with the SEC. Forward looking statements in this press
release speak only as of the date hereof, and the Company
undertakes no obligation to update or revise such statements except
as required by securities laws.
ABOUT MAGELLAN
Magellan is an independent energy company engaged in the
exploration, development, production, and sale of crude oil and
natural gas from currently held assets in the United States, Australia, and the United Kingdom.
Traded on NASDAQ since 1972, the Company conducts its operations
through two wholly owned subsidiaries, Nautilus Poplar LLC, which
owns interests at Poplar, a highly attractive oil field in the
Williston Basin, and Magellan Petroleum Australia Pty Ltd, a
successful independent oil and gas company in Australia and the UK in existence since
1964. The Company's mission is to enhance shareholder value
by maximizing the full potential of existing assets. Magellan
routinely posts important information about the Company on its
website at www.magellanpetroleum.com.
ABOUT ONE STONE
One Stone Energy Partners LP is a private equity fund based in
New York. The fund is focused on investments in natural
resources, primarily oil and gas. One
Stone's geographic areas of interest include North and
South America, Europe, and West
Africa.
The principals of the fund have over 130 years of cumulative
experience investing in, operating, and advising energy-related
businesses. One Stone has a unique group of limited partners,
the majority of whom are industry insiders.
Robert Israel and Vadim Gluzman are the managing members of One
Stone Energy Partners.
For further information, please contact:
Matthew Ciardiello, Manager,
Investor Relations at 720.484.2404
SOURCE Magellan Petroleum Corporation