Magellan Petroleum Corporation (MPET) (“Magellan” or the “Company”) today announced the formation of a special committee of independent members of the Board of Directors of the Company (the “Special Committee”) to consider various strategic alternatives potentially available to the Company. The formation of the Special Committee is not in response to any proposal received by the Company or an approach by a third party.
The Special Committee is authorized to identify, consider, negotiate, and potentially implement all strategic alternatives reasonably available to the Company, including, but not limited to, sales of some or all of the assets of the Company, joint ventures, a recapitalization, and a sale or merger of the Company. There can be no assurance that any transaction will occur.
The Company also announced that the Special Committee has engaged Petrie Partners, LLC (“Petrie”) as financial advisor. Petrie will advise the Company as regards to the strategic alternatives review process.
J. Thomas Wilson, President and CEO of the Company, commented, “As we continue to implement the CO2-enhanced oil recovery (“CO2-EOR”) pilot program at Poplar over the next few months and develop a comprehensive economic model for the project, we believe that it is time to start considering the Company’s options. Preliminary results from the pilot are encouraging and we believe that approximately up to 100 MMboe may be recovered from the B intervals of the Charles formation at Poplar through full field development using CO2-EOR techniques. We also believe that CO2-EOR is likely to enable the recovery of additional volumes of hydrocarbons from the A and C intervals of the Charles formation at Poplar. The complete development of the field using CO2-EOR is a major project, which will require a significant investment program.”
Magellan Petroleum Corporation is an independent oil and gas exploration and production company focused on the development of CO2-EOR projects in the Rocky Mountain region. Historically active internationally, Magellan also owns significant exploration acreage in the Weald Basin, onshore UK, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farmout. Our strategy is to enhance shareholder value by maximizing the value of our CO2-EOR business and our international projects. We are committed to efficiently investing financial, technical, and management capital in our projects in order to achieve the greatest risk-adjusted value and returns for our shareholders. Magellan routinely posts important information about the Company on its website at www.magellanpetroleum.com.