SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 30, 2012 (September 20, 2011)
MAGELLAN PETROLEUM CORPORATION
TABLE OF CONTENTS
MAGELLAN PETROLEUM CORPORATION
ITEM 1.01 Entry into a Material Definitive Agreement
Magellan Petroleum Corporation (the “Company” or “Magellan” or “we” or “us”) is an independent energy company engaged in the acquisition, exploration, exploitation, development, production and sale of crude oil and natural gas. All amounts presented are in United States dollars. Amounts expressed in Australian currency are indicated as “AUD.”
On May 25, 2012 (the “Closing Date”), Magellan completed an asset swap agreement (the “Santos SA”) entered into through its wholly owned subsidiary Magellan Petroleum (N.T.) Pty Ltd (“Magellan NT”) with Santos QNT Pty Ltd (“Santos QNT”) and Santos Limited (collectively the “Santos Entities”). The completed Santos SA resulted in Magellan becoming the sole owner of the Palm Valley Interests (as defined below) and of the Dingo Interests (as defined below), while the Santos Entities will become the sole owner of the Mereenie Interests (as defined below). In accordance with the terms of the Santos SA, the transaction is deemed to be effective as of July 1, 2011 (the “Effective Date”). Pursuant to the Santos SA transfer of the following assets are provided for:
The cash consideration payable for the sale of the Mereenie Interests by Magellan NT is AUD $28.0 million. The cash consideration payable for the sale of the Palm Valley Interests by the Santos Entities is AUD $2.9 million. The cash consideration payable for the sale of the Dingo Interests by the Santos Entities is AUD $0.1 million. The net cash proceeds to Magellan totaled AUD $25.0 million, and Magellan is entitled to purchase price adjustments of approximately AUD $3.7 million.
For a period of 20 years after the Effective Date, the Santos Entities will pay Magellan NT a series of contingent payments (the “Bonus Amounts”) based on meeting certain threshold volumes of net sales of petroleum from the Mereenie Titles (“Threshold Levels”) set out in the Santos SA. If all Threshold Levels are achieved, the cumulative Bonus Amount shall be AUD $17.5 million.
ITEM 2.01 Completion of Acquisition or Disposition of Assets
The information set forth under Item 1.01 is incorporated by reference into Item 2.01 of this Current Filing.
ITEM 9.01 Financial Statements and Exhibits
Unaudited pro forma condensed combined balance sheet as of March 31, 2012.
Unaudited pro forma condensed combined income statement for the year ended June 30, 2011.
Unaudited pro forma condensed combined income statement for the nine months ended March 31, 2012.
Notes to the unaudited pro forma condensed combined financial statements.
99.1 Unaudited pro forma combined financial statements
99.2 Press release announcing the completion of the Santos transaction
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: