Magellan Petroleum Sells Australian Gas Assets

Magellan Petroleum on Tuesday announced sale of Palm Valley and Dingo gas fields in Australia to Central Petroleum Limited through the sale of its wholly owned subsidiary Magellan Petroleum (N.T.) Pty. Ltd.

In exchange, Central will pay to Magellan a total of A$35 million in cash and Central stock, Magellan said.

Magellan will also receive bonuses from Central in the event that future gas sales revenues from Palm Valley exceed certain levels.

Of the A$35.0 million in consideration, A$20.0 million is payable in cash and A$15.0 million is payable in Central stock upon transaction completion. The cash consideration will be paid in two tranches: AUD $15.0 million at Completion and AUD $5.0 million on or before April 15, 2014.

Completion is expected to occur no later than March 31, 2014, and is subject to certain customary completion conditions, the company said.

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