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Document and Entity Information
9 Months Ended
Mar. 31, 2013
May 09, 2013
Document And Entity Information [Abstract]
Document Type 10-Q
Document Period End Date Mar 31, 2013
Amendment Flag false
Document Fiscal Period Focus Q3
Document Fiscal Year Focus 2013
Current Fiscal Year End Date --06-30
Entity Central Index Key 0000061398
Entity Current Reporting Status Yes
Entity Filer Category Smaller Reporting Company
Entity Registrant Name MAGELLAN PETROLEUM CORP /DE/
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer Yes
Entity Common Stock Shares Outstanding 44,642,983
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Jun. 30, 2012
Current Assets:
Cash and cash equivalents $ 14,516 $ 41,215
Accounts receivable — trade 923 1,152
Accounts receivable — working interest partners and other 200 231
Inventories 541 499
Prepaid assets 1,399 511
Total current assets 17,579 43,608
Property and equipment, net (succesful efforts method):
Proved oil and gas properties 34,381 33,927
Less accumulated depletion, depreciation and amortization (5,842) (5,740)
Unproved oil and gas properties 5,796 7,091
Wells in progress 3,006 3,744
Land, buildings, and equipment (net of accumulated depreciation of $2,243 and $2,077 as of March 31, 2013, and June 30, 2012, respectively) 1,539 1,422
Net property and equipment 38,880 40,444
Other Non-current Assets:
Goodwill 2,174 2,174
Deferred income taxes 6,929 5,951
Other long term assets 518 397
Total other non-current assets 9,621 8,522
Total assets 66,080 92,574
Current liabilities:
Short term line of credit 637 50
Current portion of note payable 411 480
Current portion of asset retirement obligations 340 329
Accounts payable 2,121 3,672
Accrued and other liabilities 3,127 3,000
Total current liabilities 6,636 7,531
Long term liabilities:
Note payable 87 390
Asset retirement obligations 7,583 7,455
Contingent consideration payable 4,244 4,072
Other long term liabilities 200 218
Total long term liabilities 12,114 12,135
Commitments and contingencies (Note 10)      
Equity:
Common stock (par value $0.01 per share): Authorized 300,000,000 shares, issued, 54,057,159 and 53,835,594 as of March 31, 2013, and June 30, 2012, respectively 540 538
Preferred stock (par value $0.01 per share): Authorized 50,000,000 shares, outstanding, 0 as of March 31, 2013, and June 30, 2012, respectively 0 0
Treasury stock (at cost): 9,414,176 and 0 shares as of March 31, 2013, and June 30, 2012, respectively (9,333) 0
Capital in excess of par value 90,691 90,753
Accumulated deficit (46,518) (29,590)
Accumulated other comprehensive income 11,950 11,207
Total equity attributable to Magellan Petroleum Corporation 47,330 72,908
Total liabilities and equity $ 66,080 $ 92,574
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Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Mar. 31, 2013
Jun. 30, 2012
Allowance for doubtful accounts $ 0 $ 0
Accumulated depreciation $ 2,243 $ 2,077
Common stock, par value $ 0.01 $ 0.01
Common stock, authorized 300,000,000 300,000,000
Common Stock, Shares, Issued 54,057,159 53,835,594
Preferred stock, par value $ 0.01 $ 0.01
Preferred Stock, authorized 50,000,000 50,000,000
Preferred stock, outstanding 0 0
Treasury Stock, Shares, Acquired 9,414,176 0
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Consolidated Statement of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
REVENUES:
Oil production $ 1,706 $ 4,633 $ 4,608 $ 10,595
Gas production 231 172 738 1,148
Total revenues 1,937 4,805 5,346 11,743
OPERATING EXPENSES:
Lease operating 1,472 4,135 5,188 10,412
Depletion, depreciation, amortization, and accretion 342 401 991 1,242
Exploration 2,709 1,625 7,425 3,619
General and administrative 2,780 3,225 9,837 9,083
Impairment 0 0 890 0
Gain on sale of assets 0 (19) 0 (4,029)
Total operating (income) expense 7,303 9,367 24,331 20,327
Income (loss) from operations (5,366) (4,562) (18,985) (8,584)
Other income (expense)
Net interest income 101 (33) 580 357
Other income 612 5 499 5
Total other income (expense) 713 (28) 1,079 362
Income (loss) before income tax (4,653) (4,590) (17,906) (8,222)
Income tax benefit (provision) 321 0 978 0
Net income (loss) after income tax (4,332) (4,590) (16,928) (8,222)
Net loss attributable to non-controlling interest in subsidiaries 0 0 0 (15)
Net income (loss) attributable to Magellan Petroleum Corporation $ (4,332) $ (4,590) $ (16,928) $ (8,207)
Earnings per common share (Note 8):
Weighted average number of basic shares outstanding (in shares) 46,084,149 53,835,594 51,302,369 53,592,958
Net income (loss) per basic share outstanding (dollars per share) $ (0.09) $ (0.09) $ (0.33) $ (0.15)
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Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Statement of Other Comprehensive Income [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ (4,332) $ (4,590) $ (16,928) $ (8,222)
Foreign currency translation adjustments (190) 378 773 (351)
Unrealized holding (losses) gains on securities available for sale, net of deferred tax of $0 (8) 20 (30) (71)
Total comprehensive income (loss) (4,530) (4,192) (16,185) (8,644)
Net loss attributable to non-controlling interest in subsidiary 0 0 0 15
Comprehensive income (loss) attributable to Magellan Petroleum Corporation $ (4,530) $ (4,192) $ (16,185) $ (8,629)
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Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) (USD $)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Statement of Other Comprehensive Income [Abstract]
Unrealized holding (losses) gains on securities available for sale, tax $ 0 $ 0
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Consolidated Statement of Stockholders' Equity (USD $)
In Thousands
Total
Common Stock
Treasury Stock
Capital in Excess of Par Value
Accumulated Deficit
Accumulated Other Comprehensive Income
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2012 $ 72,908 $ 538 $ 90,753 $ (29,590) $ 11,207
Net income (loss) attributable to Magellan Petroleum Corporation (16,928) (16,928)
Foreign currency translation adjustments 773 773
Unrealized holding gain (loss) on securities available for sale, net of taxes (30) (30)
Stock and stock based compensation 753 2 751
Treasury Stock, Value, Acquired, Cost Method (9,333) (9,333)
Stock Repurchased and Retired During Period, Value (813) (813)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2013 $ 47,330 $ 540 $ (9,333) $ 90,691 $ (46,518) $ 11,950
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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
OPERATING ACTIVITIES:
Net income (loss) after income tax $ (16,928) $ (8,222)
Adjustments to reconcile net loss to net cash used in operating activities
Foreign transaction (gain) loss 23 (1,045)
Depletion, depreciation and amortization 991 1,242
Interest earned on restricted deposits 0 (24)
Fair value increase of contingent consideration payable 172 128
Deferred income taxes (978) 0
Gain on disposal of assets 0 (4,029)
Exploration Abandonment and Impairment Expense 2,233 944
Stock based compensation 753 1,282
Impairment loss 890 0
Severance Costs 535 0
Net changes in operating assets and liabilities:
Accounts receivable 116 1,213
Inventories (42) (357)
Prepayments and other current assets 113 (386)
Accounts payable and accrued liabilities (3,038) (1,028)
Other long term liabilities (20) (89)
Income taxes payable 0 61
Net cash (used in) provided by operating activities (15,180) (10,310)
INVESTING ACTIVITIES:
Additions to property and equipment (2,316) (5,244)
Proceeds from sale of assets 0 5,035
Purchase of working interest in Poplar 0 (823)
Refund (Payment) of Deposit for Purchase of Evans shoal (includes interest) 0 10,940
Net cash provided by (used in) investing activities (2,316) 9,908
FINANCING ACTIVITIES:
Proceeds from issuance of stock 0 35
Payments for Repurchase of Common Stock (9,333) 0
Payments for Repurchase of Warrants (813) 0
Short term debt issuances 2,000 4,874
Short term debt repayments (1,413) (4,225)
Purchase of non-controlling interest - Nautilus Poplar LLC 0 (3,461)
Long term debt repayments (372) (420)
Net cash (used in) provided by financing activities (9,931) (3,197)
Effect of exchange rate changes on cash and cash equivalents 728 392
Net increase (decrease) in cash and cash equivalents (26,699) (3,207)
Cash and cash equivalents at beginning of period 41,215 20,417
CASH AND CASH EQUIVALENTS AT END OF PERIOD 14,516
Cash Payments:
Income taxes 0 26
Interest Paid, net of amount capitalized 45 85
Supplemental Schedule of Noncash Investing and Financing Activities:
Unrealized holding gain (loss) (30) (71)
Revision to estimate of asset retirement obligations (306)
Asset Retirement Obligation, Liabilities Incurred 3
Accounts payable related to property plant and equipment 49 430
Purchase of non-controlling interest for Stock and contingent consideration 0 4,729
Purchase of 3% working interest for stock and contingent consideration $ 0 $ 1,243
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Basis of Presentation
9 Months Ended
Mar. 31, 2013
Basis Of Presentation And Significant Accounting Policies [Abstract]
Basis Of Presentation
Note 1 - Basis of Presentation
Description of Operations
Magellan Petroleum Corporation (the "Company" or "Magellan" or "we" or "us") is an independent oil and gas company engaged in the exploration, development, production, and sale of crude oil and natural gas. As of March 31, 2013, Magellan had two reporting segments: (i) a 100% membership interest in Nautilus Poplar LLC ("NP"), a company based in Denver, Colorado, and (ii) a 100% equity interest in its subsidiary, Magellan Petroleum Australia Pty Ltd ("MPA"), a company headquartered in Brisbane, Australia, which includes our operations in the United Kingdom.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Magellan and its wholly owned subsidiaries, NP and MPA, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual period financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. All intercompany transactions have been eliminated. Operating results for the nine months ended March 31, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2013. This report should be read in conjunction with the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2012.
All amounts presented are in United States dollars, unless otherwise noted. Amounts expressed in Australian currency are indicated as "AUD."
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of oil and gas reserves, assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation
The functional currencies of our foreign subsidiaries are their local currencies. Assets and liabilities of foreign subsidiaries are translated to United States dollars at period-end exchange rates and our unaudited condensed consolidated statements of operations and cash flows are translated at average exchange rates during the period. Resulting translation adjustments are recorded as a separate component of stockholders' equity as accumulated other comprehensive income or loss.
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions occurred. Subsequent changes in exchange rates result in foreign currency transaction gains and losses that are reflected in results of operations as unrealized (based on period end translation) or realized (upon settlement of the transactions) and reported under general and administrative expenses in the unaudited condensed consolidated statements of operations.
Goodwill
Goodwill represents the excess of the purchase price over the estimated fair value of the assets acquired net of the fair value of liabilities assumed in an acquisition. GAAP requires goodwill to be evaluated on an annual basis for impairment, or more frequently if events occur or circumstances change that could potentially result in impairment. We adopted the new guidance for our annual impairment test in fiscal year 2012 as allowed by Accounting Standards Update ("ASU") No. 2011-08 and therefore perform an annual assessment of qualitative factors for our impairment test. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. Management performs interim assessments of goodwill if impairment indicators are present. For the nine months ended March 31, 2013, no events or circumstances were identified that would indicate that a goodwill impairment has occurred.
Business Combinations
The Company applies the acquisition method of recording business combinations. Under this method, the Company recognizes and measures the identifiable assets acquired from, the liabilities assumed from, and any non-controlling interest in the acquiree. Any goodwill or gain is identified and recorded. We engage independent valuation consultants to assist us in determining the fair values of crude oil and natural gas properties acquired, and other third party specialists as needed to assist us in assessing the fair value of other assets and liabilities assumed. These valuations require management to make significant estimates and assumptions, especially with respect to the oil and gas properties.
Exploration
We capitalize exploratory well costs until a determination is made that the well has found proved reserves or is deemed noncommercial. If a well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs and geological and geophysical expenses.
Recently Issued Accounting Standards
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. ASU No. 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 is not expected to have a material impact on the unaudited condensed consolidated financial statements.
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Acquisitions and Divestitures
9 Months Ended
Mar. 31, 2013
Acquisitions and Divestitures [Abstract]
Mergers, Acquisitions and Dispositions Disclosures [Text Block]
Note 2 - Acquisitions and Divestitures
Sale Agreement between Magellan Petroleum (N.T.) Pty Ltd and Santos QNT Pty Ltd and Santos Limited. On May 25, 2012, Magellan Petroleum (N.T.) Pty Ltd ("Magellan NT"), a wholly owned subsidiary of MPA, and Santos QNT Pty Ltd ("Santos") and Santos Limited (collectively the "Santos Entities") completed a Sale Agreement (the "Santos SA"). Under the Santos SA, MPA became the sole owner of the Palm Valley Interests (as defined below) and the Dingo Interests (as defined below), and Santos became the sole owner of the Mereenie Interests (as defined below). The Santos SA is deemed to be effective as of July 1, 2011, and resulted in net cash proceeds of $26.6 million, including a purchase price adjustments of $1.1 million, and a gain on sale of assets in the amount of $36.2 million. The Santos SA provided for the transfer of the following assets:
Magellan NT's 35% interest in each of the Mereenie Oil and Gas Field Joint Venture and the Mereenie Pipeline Joint Venture (collectively, the "Mereenie Interests") to Santos;
the Santos Entities' combined interests of 48% in the Palm Valley Joint Venture ("Palm Valley Interests") and combined interests of 66% in the Dingo Joint Venture ("Dingo Interests") to Magellan NT.
Pursuant to the Santos SA, Magellan NT is also entitled to a series of payments of up to AUD $17.5 million provided that certain volume contingencies are met. The Company has not recognized a contingent asset related to these payments, because these payments are not reasonably assured. The Company accounted for the Santos SA using the relative fair value method of accounting, which allocates the fair value of the assets received in the asset transfer to the Palm Valley Interests and the Dingo Interests. No goodwill or other intangible assets were recorded as a result of the Santos SA. However, goodwill in the amount of $2.5 million was recorded as a component of the gain on sale of assets. The purchase price allocation was considered final as of June 30, 2012.
The following table summarizes the allocation of the consideration received for the assets transferred as a result of the Santos SA as of June 30, 2012.
 
Total
 
(In thousands)
Consideration received
 
Net purchase price per Santos SA
$
25,493

Purchase price adjustments
1,138

Total
$
26,631

 
 
Allocation of the consideration received to fair value of assets
 
Proved oil and gas properties (Palm Valley)
$
3,403

Unproved oil and gas properties (Dingo)
2,957

Land, buildings, and equipment (Palm Valley)
370

Total allocation of the fair value received
6,730

Mereenie liabilities given up, net
2,805

Gain on sale of assets
(36,166
)
Total
$
(26,631
)
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Debt
9 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]
Debt
Note 3 - Debt
Long term debt relates to a $1.7 million note payable re-issued in January 2011 (the "Note Payable"). The Note Payable will be fully amortized in June 2014. The outstanding principal as of March 31, 2013, and June 30, 2012, consisted of the following:
 
March 31,
2013
 
June 30,
2012
 
(In thousands)
Note payable
$
498

 
$
870

Less current portion of note payable
(411
)
 
(480
)
Long term debt, excluding current portion
$
87

 
$
390


As of March 31, 2013, the minimum future principal maturities of long term debt were as follows:
 
Total
 
(In thousands)
One year
$
411

Two years
87

Total
$
498


The variable rate of the note is based upon the Wall Street Journal Prime Rate (the "Index") plus 1.00%, subject to a floor rate of 6.25%. The Index was 3.25% at March 31, 2013, resulting in an interest rate of 6.25% per annum as of March 31, 2013. Under the Note Payable, NP is subject to certain customary financial and restrictive covenants. As of March 31, 2013, NP was in compliance with all financial and restrictive covenants.
In addition, the Company has a $1.0 million working capital line of credit classified as short term debt (the "Line of Credit"). The amount due on the Line of Credit was $0.6 million and $50 thousand as of March 31, 2013 and June 30, 2012, respectively. The Line of Credit bears interest at a variable rate, which was 6.25% as of March 31, 2013. This Line of Credit also secures a letter of credit in the amount of $25 thousand in favor of the Bureau of Land Management. As of March 31, 2013, $0.3 million was available under this Line of Credit.
The Note Payable and Line of Credit are collateralized by a first mortgage and an assignment of production from Poplar and are guaranteed by Magellan up to $6.0 million, not to exceed the amount of the principal owed. The carrying amount of the Company's long term debt approximates its fair value, due to its variable interest rate, which resets based on the market rates
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Asset Retirement Obligations
9 Months Ended
Mar. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations
Note 4 - Asset Retirement Obligations
The estimated valuation of asset retirement obligations ("AROs") is based on management's historical experience and best estimate of plugging and abandonment costs by field. Assumptions and judgments made by management when assessing an ARO include: (i) the existence of a legal obligation; (ii) estimated probabilities, amounts, and timing of settlements; (iii) the credit-adjusted risk-free rate to be used; and (iv) inflation rates. Accretion expense is recorded under depletion, depreciation, amortization, and accretion in the unaudited condensed consolidated statement of operations.
The following table summarizes the asset retirement obligation activity for the nine months ended March 31, 2013:
 
Total
 
(In thousands)
June 30, 2012
$
7,784

Liabilities assumed
3

Accretion expense
329

Revision to estimate
(306
)
Effect of exchange rate changes
113

March 31, 2013
7,923

Less current asset retirement obligation
340

Long term asset retirement obligation
$
7,583

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Fair Value Measurements
9 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]
Fair Value Measurements
Note 5 - Fair Value Measurements
The Company follows authoritative guidance related to fair value measurement and disclosure, which establishes a three level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1: Quoted prices in active markets for identical assets.
Level 2: Significant other observable inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3: Significant inputs to the valuation model are unobservable inputs.
The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company's policy is to recognize transfers in and/or out of a fair value hierarchy as of the end of the reporting period for which the event or change in circumstances caused the transfer. The Company has consistently applied the valuation techniques discussed for all periods presented. During the nine months ended March 31, 2013, and 2012, there have been no transfers in and/or out of Level 1, Level 2, or Level 3. Items required to be measured at fair value on a non-recurring basis include liabilities related to AROs and the warrant repurchased from Sopak and retired.
The following table presents the amounts of assets and liabilities carried at fair value by the level in which they are classified within the valuation hierarchy as follows:
 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
14,516

 
$

 
$

 
$
14,516

Securities available for sale (1)
125

 

 

 
125

 
$
14,641

 
$

 
$

 
$
14,641

Liabilities
 
 
 
 
 
 
 
Contingent consideration payable
$

 
$

 
$
4,244

 
$
4,244

 
 
 
 
 
 
 
 
 
June 30, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
41,215

 
$

 
$

 
$
41,215

Securities available for sale (1)
155

 

 

 
155

 
$
41,370

 
$

 
$

 
$
41,370

Liabilities
 
 
 
 
 
 
 
Contingent consideration payable
$

 
$

 
$
4,072

 
$
4,072

(1) Included in the unaudited condensed consolidated balance sheets under prepaid and other assets.
Cash and cash equivalents and securities available for sale are measured at fair value on a recurring basis in conformity with GAAP using Level 1 inputs. As of March 31, 2013, the Company had $14.5 million in cash and cash equivalents, with $3.9 million held in cash and $10.7 million classified as cash equivalents. Cash equivalents have maturities of 90 days or less. In the United States cash equivalents were held in U.S. Treasury notes and in Australia cash equivalents were held in several time deposit accounts.
The contingent consideration payable is a standalone liability that is measured at fair value on a recurring basis for which there is no available quoted market price, principal market, or market participants. The inputs for this instrument are unobservable and therefore classified as Level 3 inputs. The calculation of this liability is a significant management estimate and uses drilling and production projections to estimate future production bonus payments. The liability is estimated by converting a schedule of irregular future production bonus payments to a single net present value amount. Payment of future production bonuses are sensitive to the Company's 60 day rolling production average and would increase the contingent consideration payable with significant production increases.
The following table presents a roll forward of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended March 31, 2013:
 
Total
 
(In thousands)
June 30, 2012
$
4,072

Accretion of contingent consideration payable
172

March 31, 2013
$
4,244


The fair value of the contingent consideration payable is calculated with a discounted cash flow model using production projections and the estimated timing of production payouts. The Company also utilizes a discount rate that is consistent with the rate used in valuing its asset retirement obligations and reflective of the Company’s credit adjusted borrowing rate.
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Income Taxes
9 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]
Income Taxes
Note 6 - Income Taxes
The Company has estimated the applicable effective tax rate expected for the full fiscal year. The Company's effective tax rate used to estimate income taxes on a current year-to-date basis for the nine months ended March 31, 2013, is 5.46% compared to 0% for the nine months ended March 31, 2012. Deferred tax assets ("DTAs") are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating losses and foreign tax credit carry forwards. A valuation allowance reduces DTAs to the estimated realizable value, which is the amount of DTA management believes is "more-likely-than-not" to be realized in future periods.
We review our DTAs and valuation allowance on a quarterly basis. As part of our review, we consider positive and negative evidence, including cumulative results in recent years. We anticipate we will continue to record a valuation allowance against our DTAs in all jurisdictions of the Company, except for the DTA related to the Australian Petroleum Resource Rent Tax, until such time as we are able to determine it is "more-likely-than-not" those DTAs will be realized.
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Stock Based Compensation
9 Months Ended
Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation
Note 7 - Stock Based Compensation
The 2012 Stock Incentive Plan
On January 16, 2013, the Company's shareholders approved the Magellan Petroleum Corporation 2012 Omnibus Incentive Compensation Plan (the "2012 Stock Incentive Plan"). The 2012 Stock Incentive Plan replaces the Company's 1998 Stock Incentive Plan (the "1998 Stock Plan"). The 2012 Stock Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock and/or restricted stock units, performance shares and/or performance units, incentive awards, cash awards, and other stock based awards to employees, including officers, directors, and consultants of the Company (or subsidiaries of the Company) who are selected by the Compensation, Nominating and Governance Committee of the Board of Directors of the Company to receive incentive compensation awards. The stated maximum number of shares of the Company's common stock authorized for awards under the 2012 Stock Incentive Plan is 5,000,000 shares plus any remaining shares under the 1998 Stock Plan immediately before the effective date of the 2012 Stock Incentive Plan, which was 288,435 as of January 15, 2013. The maximum aggregate annual number of common shares or options that may be granted to one participant is 1,000,000, and the maximum annual number of performance shares, performance units, restricted stock or restricted stock units is 500,000. The maximum term of the 2012 Stock Incentive Plan is ten years.
Stock Option Grants
Under the 2012 Stock Incentive Plan, stock option grants may contain both time based or performance based vesting provisions. The time based options are expensed on a straight-line basis over the vesting period. Performance based options ("PBOs") are recognized when the achievement of the performance conditions are considered probable. Accordingly, the Company recognizes stock based compensation expense on these awards over the period of time the performance condition is expected to be achieved. Management re-assesses whether achievement of performance conditions is probable at the end of each reporting period. If changes in the estimated outcome of the performance conditions affect the quantity of the awards expected to vest, the cumulative effect of the change is recognized in the period of change. As of March 31, 2013, all PBOs granted were fully vested.
As of March 31, 2013, 5,396,769 shares, including forfeited shares, were available for future issuance under the 2012 Stock Incentive Plan. During the nine months ended March 31, 2013, 1,007,500 options were granted of which 75,000 were issued as PBOs and 882,500 options were issued outside of the 1998 Stock Plan. Options outstanding have expiration dates ranging from January 16, 2014, to December 4, 2022.
The following table summarizes the stock option activity for the nine months ended March 31, 2013:
 
Number of
Shares
 
WAEPS (1)
June 30, 2012
6,753,125

 
$1.44
Granted
1,007,500

 
$1.10
Forfeited
(591,668
)
 
$1.29
March 31, 2013
7,168,957

 
$1.36
Weighted average remaining contractual term
4.8

years
(1) Weighted average exercise price per share
The fair value of stock option grants was estimated using the following weighted average assumptions for the nine months ended:
 
March 31,
 
2013
 
2012
Number of options
1,007,500
 
1,675,000
Weighted average grant date fair value per share
$0.61
 
$0.72
Expected dividend
$0.00
 
$0.00
Risk free interest rate
0.6
%
 
-
0.8
%
 
1.0
%
 
-
1.3
%
Expected life
5.1

 
-
6.0 years

 
5.3

 
-
6.0 years

Expected volatility (based on historical price)
60.3
%
 
-
63.5
%
 
61.2
%
 
-
62.8
%

Stock Compensation Expense
The Company recorded $0.1 million and $0.8 million of related stock compensation expense for the three and nine months ended March 31, 2013, respectively, and $0.4 million and $1.3 million of related stock compensation expense for the three and nine months ended March 31, 2012, respectively. Stock based compensation is included in general and administrative expense in the unaudited condensed consolidated statements of operations. The unrecorded expected future compensation expense related to stock option awards was $0.6 million as of March 31, 2013.
The Company's compensation policy is designed to provide the Company's non-employee directors with a portion of their annual base Board service compensation in the form of equity. Between July 1, 2012, and March 31, 2013, the Company issued a total of 171,565 shares of its common stock to non-employee directors pursuant to this policy.
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Equity (Notes)
9 Months Ended
Mar. 31, 2013
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]
Note 8 - Stockholders' Equity
Treasury Stock
On September 24, 2012, the Company announced that its Board of Directors had approved a stock repurchase program authorizing the Company to repurchase up to a total value of $2.0 million in shares of its common stock. The size and timing of such purchases will be based on market and business conditions as well as other factors. The Company is not obligated to purchase any shares of its common stock. The authorization will expire on August 21, 2014, and purchases under the program can be discontinued at any time. For the nine months ended March 31, 2013, the Company repurchased 149,539 shares pursuant to this program.
On January 14, 2013, the Company entered into a Collateral Purchase Agreement (the "Collateral Agreement") with Sopak AG, a Swiss subsidiary of Glencore International plc ("Sopak"), pursuant to which the Company agreed to purchase: (i) 9,264,637 shares of the Company's common stock, (ii) a warrant granting Sopak the right to purchase from the Company an additional 4,347,826 shares of common stock, and (iii) a Registration Rights Agreement, dated as of June 29, 2009, and amended as of October 14, 2009, and June 23, 2010, between the Company, Young Energy Prize S.A., a Luxembourg corporation ("YEP"), and ECP Fund, SICAV-FIS, a Luxembourg corporation ("ECP"), which is a subsidiary of Yamalco Investments Limited, a Cyprus company ("Yamalco"), for a purchase price of $10.0 million. The Company accounted for the Collateral Agreement by allocating the purchase price of $10.0 million to the fair value of the warrant, which was estimated at $0.8 million, and the remaining $9.2 million to the purchase of 9,264,637 shares of common stock, resulting in a value per share of $0.993 (refer below) and to the common stock shares purchased. The Collateral Agreement was subsequently amended on January 15, 2013, and completed on January 16, 2013. YEP, ECP, and Yamalco are entities affiliated with Nikolay V. Bogachev, a former director of the Company.
All repurchased common stock shares are currently being held in treasury at cost, including direct issuance cost. The following table summarizes the Company's treasury stock activity for the nine months ended March 31, 2013:
 
Number of shares
 
Average price per share
 
Amount
 
(In thousands, except share and per share amounts)
Repurchases through the stock repurchase program
149,539

 
$0.916
 
$
137

Repurchase through the Collateral Agreement (1)
9,264,637

 
$0.993
 
$
9,196

 
9,414,176

 
 
 
$
9,333

(1) Purchase price of $10.0 million reduced by the fair value of the warrant.
Retired Warrant
The Company formally retired the warrant purchased from Sopak pursuant to the Collateral Agreement. The fair value of the warrant was estimated using the Black-Scholes-Merton pricing model and determined to be approximately $0.8 million, which was included as a reduction of additional paid in capital in the unaudited condensed consolidated balance sheet.
Assumptions used in estimating the fair value of the warrant included: (i) the common stock price on the repurchase date of $0.90; (ii) the exercise price of the warrant of $1.15; (iii) an expected dividend of $0; (iv) a risk free interest rate of 0.2%; (v) a remaining contractual term of 1.5 years ; and (vi) an expected volatility based on historical prices of 60.8%.
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Earnings Per Share
9 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]
Earnings Per Share
Note 9 - Earnings Per Common Share
The following table summarizes the computation of basic and diluted earnings per share:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
 
(In thousands, except share and per share amounts)
Net loss attributable to Magellan Petroleum Corporation
$
(4,332
)
 
$
(4,590
)
 
$
(16,928
)
 
$
(8,207
)
 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
46,084,149

 
53,835,594

 
51,302,369

 
53,592,958

Add: dilutive effects of stock options and unvested stock grants (1)

 

 

 

Diluted weighted average common shares outstanding
46,084,149

 
53,835,594

 
51,302,369

 
53,592,958

 
 
 
 
 
 
 
 
Net loss per basic and diluted share outstanding
$
(0.09
)
 
$
(0.09
)
 
$
(0.33
)
 
$
(0.15
)
(1) There is no dilutive effect on earnings per share in periods with net losses.
Potentially dilutive securities excluded from the calculation of diluted shares outstanding include the following:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
Stock options
75,000

 
4,422,826

 
82,500

 
7,522,826

Non-vested restricted stock

 
204,167

 

 
204,167

Total
75,000

 
4,626,993

 
82,500

 
7,726,993

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Segment and Geographical Data
9 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]
Segment and Geographic Data
Note 10 - Segment Data
The Company conducts its operations through two wholly owned subsidiaries, NP, which operates in the United States, and MPA, which is primarily active in Australia. The following table presents each segment as follows:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31
 
March 31
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
REVENUES:
 
 
 
 
 
 
 
NP
$
1,706

 
$
1,692

 
$
4,608

 
$
4,574

MPA
231

 
3,107

 
738

 
7,163

Corporate

 
6

 

 
6

Inter-segment elimination

 

 

 

Consolidated revenues
$
1,937

 
$
4,805

 
$
5,346

 
$
11,743

 
 
 
 
 
 
 
 
CONSOLIDATED NET LOSS:
 
 
 
 
 
 
 
NP
$
333

 
$
(894
)
 
$
(133
)
 
$
2,862

MPA
(3,396
)
 
(1,039
)
 
(10,913
)
 
(4,348
)
Corporate
(1,300
)
 
(2,652
)
 
(5,736
)
 
(6,711
)
Inter-segment elimination
31

 
(5
)
 
(146
)
 
(10
)
Consolidated net loss
$
(4,332
)
 
$
(4,590
)
 
$
(16,928
)
 
$
(8,207
)
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Commitments
9 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Commitments
Note 11 - Commitments and Contingencies
Refer to Note 10 - Commitments, of the Notes to the Consolidated Financial Statements in our Form 10-K for the fiscal year ended June 30, 2012, for information on all commitments.
In September 2011, the Company entered into a Purchase and Sale Agreement (the "Nautilus PSA") among the Company and the non-controlling interest owners of NP for the Company's acquisition of the sellers' interests in NP (the "Nautilus Transaction"). The Nautilus PSA provides for potential future contingent production payments, payable by the Company in cash to the sellers, of up to a total of $5.0 million if certain increased average daily production milestones for the underlying properties are achieved. J. Thomas Wilson, a director and executive officer of the Company, has an approximately 52% interest in such contingent payments. See Note 5 above for information regarding the estimated discounted fair value of the future contingent consideration payable related to the Nautilus Transaction.
On August 28, 2012, Stratex Oil & Gas Holdings, Inc. ("Stratex"), announced an unsolicited proposal for the acquisition of the Company's common stock (the "Stratex Announcement"). On September 10, 2012, the Company announced that its Board of Directors, after carefully considering the unsolicited proposal, had determined not to pursue the Stratex proposal. On September 12, 2012, the Company received a subpoena from the U.S. Securities and Exchange Commission (the "SEC") for the production of documents in connection with these announcements. On September 14, 2012, the Company received a letter from the Financial Industry Regulatory Authority ("FINRA") stating that FINRA was conducting a review of trading in the Company's common stock surrounding the August 28, 2012, Stratex Announcement and requesting information and documents from the Company in connection therewith. The Company cooperated with FINRA's requests, and on April 30, 2013, the Company received a letter from FINRA stating that their review had been completed, and FINRA had made its recommendation for whatever action, if any, to the SEC. The Company has not received any substantive correspondence from the SEC since September 2012.
The Company has estimated that there is the potential for a statutory liability of approximately $1.0 million of required U.S. Federal tax withholdings related to the Collateral Agreement as described in Note 8. As a result, as of March 31, 2013, we have recorded a total liability of $1.0 million under accrued and other liabilities in the unaudited condensed consolidated balance sheet included in this report. The Company is in the process of addressing its U.S. Federal tax withholdings requirements. The Company has a legally enforceable right to collect from Sopak any amounts owed to the IRS as a result of the Collateral Agreement. As a result, we have recorded a corresponding receivable under prepaid and other assets in the unaudited condensed consolidated balance sheet of $1.0 million.
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Related Party Transactions
9 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]
Related Party Transactions
Note 12 - Related Party Transactions
During the third quarter of fiscal year 2012, the Company identified a potential liability of approximately $2.0 million related to the Company's non-payment of required U.S. Federal tax withholdings in the course of its initial acquisition of a part of NP. In October 2009, Magellan acquired 83.5% of the membership interests in NP (the "Poplar Acquisition"), from the two majority owners of NP, White Bear LLC ("White Bear") and YEP I, SICAV-FES ("YEP I"). Both of these entities are affiliated with Nikolay V. Bogachev, a foreign national who was a director of Magellan at the time of the Poplar Acquisition but has since resigned. Because YEP I was a foreign entity and the members of White Bear were foreign nationals, Magellan was required to make U.S. Federal tax withholdings from the payments to or for the benefit of White Bear and YEP I. Of the $2.0 million liability, $1.3 million was estimated to relate to the interest sold by White Bear, $0.6 million to the interest sold by YEP I, and $0.1 million to Magellan's interest on the late payment of the U.S. Federal tax withholdings.
With regards to White Bear, Mr. Bogachev filed his U.S. income tax return and paid taxes due on the Poplar Acquisition and Magellan has no further related potential liability. With regards to YEP I, which is now a defunct entity, Magellan concluded that it was unlikely that one of YEP I's successor entities would be filing the corresponding U.S. income tax return. As a result, the Company initiated a disclosure process with the IRS.
As a result of this disclosure process, and subsequent to March 31, 2013, the Company's total liability with respect to this matter was determined to be approximately $0.1 million. As of March 31, 2013, we have recorded a total liability of $0.1 million under accrued and other liabilities in the unaudited condensed consolidated balance sheet related to this matter. The effect of this transaction on the unaudited condensed consolidated statements of operations for the nine months ended March 31, 2013, was other income of $0.4 million representing the difference between the original estimate and the approximate final liability of $0.1 million.
See Note 8 - Stockholders' Equity above for discussions of transactions in which Mr. Bogachev had an interest.
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Oil and Gas Activities
9 Months Ended
Mar. 31, 2013
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Oil and Gas Activities
Note 13 - Oil and Gas Activities
The following table represents the capitalized costs under the successful efforts method for oil and gas properties as of:
 
March 31,
2013
 
June 30,
2012
 
(In thousands)
Proved oil and gas properties:
 
 
 
United Kingdom
$

 
$

United States
25,146

 
24,207

Australia
9,235

 
9,720

Less accumulated depletion, depreciation, and amortization
(5,842
)
 
(5,740
)
Total net proved oil and gas properties
$
28,539

 
$
28,187

 
 
 
 
Unproved oil and gas properties:
 
 
 
United Kingdom
$
1,074

 
$
2,598

United States
245

 
104

Australia
4,477

 
4,389

Total unproved oil and gas properties
$
5,796

 
$
7,091

 
 
 
 
Wells in Progress:
 
 
 
United Kingdom
$
693

 
$
2,026

United States
2,313

 
1,718

Australia

 

Total wells in progress
$
3,006

 
$
3,744


During the nine months ended March 31, 2013, the Company allowed a petroleum exploration and development license in the United Kingdom to expire at the end of its term. As a result, an impairment of $0.9 million was recorded in the unaudited condensed consolidated statement of operations. Additionally, the Company recorded a write-down related to the Markwells Wood-1 exploration well in the United Kingdom operated by Northern Petroleum. As a result, an exploration expense of $2.2 million was recorded in the unaudited condensed consolidated statement of operations. No further write-downs were recorded during the nine months ended March 31, 2013.
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Termination Costs
9 Months Ended
Mar. 31, 2013
Termination Costs [Abstract]
Compensation Related Costs, General [Text Block]
Note 14 - Employee Severance Costs
The Company is required to record charges for one-time employee severance benefits and other associated costs as incurred. In July 2012, the Company incurred severance costs payable in connection with the termination of the employment of certain employees pursuant to the terms of their employment agreements. For the nine months ended March 31, 2013, the Company expensed total employee-related severance costs of $0.8 million, all of which were charged to general and administrative expense in the unaudited condensed consolidated statement of operations. The Company does not expect any additional benefits or other associated costs related to these terminations. The liability related to these severance costs is included in the unaudited condensed consolidated balance sheet under accrued and other liabilities.
A reconciliation of the beginning and ending liability balance for charges to general and administrative expense and cash payments for the nine months ended March 31, 2013, is as follows:
 
Total
 
(In thousands)
June 30, 2012
$

Charges to general and administrative expense
842

Cash payments
(307
)
March 31, 2013
$
535

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Subsequent Events Subsequent Events (Notes)
9 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]
Subsequent Events [Text Block]
Note 15 - Subsequent Events
Series A Convertible Preferred Stock Financing Agreement
On May 10, 2013, the Company entered into a Series A Convertible Preferred Stock Purchase Agreement (the "Series A Purchase Agreement") with One Stone Holdings II LP ("One Stone"), an affiliate of One Stone Energy Partners, L.P., a New York based private equity firm focused on investments in the oil and gas industry. Pursuant to the terms of the Series A Purchase Agreement, upon the fulfillment of certain customary closing conditions, the Company will issue and sell to One Stone 19,239,734 shares of Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"), at a purchase price of $1.22 per share (the “Purchase Price”), for aggregate proceeds of approximately $23.5 million. Subject to certain conditions, each share of Series A Preferred Stock and any related unpaid accumulated dividends will be convertible into one share of the Company's Common Stock, par value $0.01 per share (the "Common Stock"), at an initial conversion price of $1.22 per share (the "Conversion Price").
The Company will receive the proceeds of this transaction upon the closing of the Series A Purchase Agreement (with the date of such closing referred to herein as the "Closing Date"), which is expected to occur on or before May 22, 2013, subject to the satisfaction of certain customary closing conditions.
Holders of Series A Preferred Stock will be entitled to a dividend equivalent of 7.0% per annum on the face value, which will be the Purchase Price plus any accumulated unpaid dividends, payable quarterly in arrears. Dividends will generally be payable in cash or in kind (in the form of additional shares of Series A Preferred Stock), at the Company's option.
Subject to certain conditions, each share of Series A Preferred Stock will be convertible at any time into a number of shares of common stock equal to the face amount of the Series A Preferred Stock divided by the conversion price of $1.22 per share of common stock, with conversion subject to a cap until full convertibility and full voting rights are approved by the holders of the common stock pursuant to NASDAQ listing rules. Subject to certain conditions, at any time after the third anniversary of the Closing Date, the Company will have the right to force conversion and will have the right to redeem all of the shares of Series A Preferred Stock for a cash payment equal to the greater of (i) the closing sales price of the common stock on the date the Company exercises such right multiplied by the number of shares of common stock issuable upon conversion of the then-outstanding Series A Preferred Stock, or (ii) an amount that, when considering all dividends already paid, allows One Stone to achieve a 20% annualized internal rate of return on the then outstanding Series A Preferred Stock. One Stone will be able to convert the Series A Preferred Stock into shares of common stock at any time prior to the close of business on the redemption date. The Series A Preferred Stock will rank senior to common stock with respect to dividend rights and rights upon liquidation, winding up, and dissolution.
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Basis of Presentation (Policies)
9 Months Ended
Mar. 31, 2013
Basis Of Presentation And Significant Accounting Policies [Abstract]
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Magellan and its wholly owned subsidiaries, NP and MPA, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual period financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. All intercompany transactions have been eliminated. Operating results for the nine months ended March 31, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2013. This report should be read in conjunction with the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2012.
All amounts presented are in United States dollars, unless otherwise noted. Amounts expressed in Australian currency are indicated as "AUD."
Use of Estimates
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of oil and gas reserves, assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation
Foreign Currency Translation
The functional currencies of our foreign subsidiaries are their local currencies. Assets and liabilities of foreign subsidiaries are translated to United States dollars at period-end exchange rates and our unaudited condensed consolidated statements of operations and cash flows are translated at average exchange rates during the period. Resulting translation adjustments are recorded as a separate component of stockholders' equity as accumulated other comprehensive income or loss.
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions occurred. Subsequent changes in exchange rates result in foreign currency transaction gains and losses that are reflected in results of operations as unrealized (based on period end translation) or realized (upon settlement of the transactions) and reported under general and administrative expenses in the unaudited condensed consolidated statements of operations.
Goodwill
Goodwill
Goodwill represents the excess of the purchase price over the estimated fair value of the assets acquired net of the fair value of liabilities assumed in an acquisition. GAAP requires goodwill to be evaluated on an annual basis for impairment, or more frequently if events occur or circumstances change that could potentially result in impairment. We adopted the new guidance for our annual impairment test in fiscal year 2012 as allowed by Accounting Standards Update ("ASU") No. 2011-08 and therefore perform an annual assessment of qualitative factors for our impairment test. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. Management performs interim assessments of goodwill if impairment indicators are present. For the nine months ended March 31, 2013, no events or circumstances were identified that would indicate that a goodwill impairment has occurred.
Business Combinations
Business Combinations
The Company applies the acquisition method of recording business combinations. Under this method, the Company recognizes and measures the identifiable assets acquired from, the liabilities assumed from, and any non-controlling interest in the acquiree. Any goodwill or gain is identified and recorded. We engage independent valuation consultants to assist us in determining the fair values of crude oil and natural gas properties acquired, and other third party specialists as needed to assist us in assessing the fair value of other assets and liabilities assumed. These valuations require management to make significant estimates and assumptions, especially with respect to the oil and gas properties.
Exploration
Exploration
We capitalize exploratory well costs until a determination is made that the well has found proved reserves or is deemed noncommercial. If a well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs and geological and geophysical expenses.
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Acquisitions and Divestitures (Tables)
9 Months Ended
Mar. 31, 2013
Acquisitions and Divestitures [Abstract]
Schedule of Purchase Price Allocation
The following table summarizes the allocation of the consideration received for the assets transferred as a result of the Santos SA as of June 30, 2012.
 
Total
 
(In thousands)
Consideration received
 
Net purchase price per Santos SA
$
25,493

Purchase price adjustments
1,138

Total
$
26,631

 
 
Allocation of the consideration received to fair value of assets
 
Proved oil and gas properties (Palm Valley)
$
3,403

Unproved oil and gas properties (Dingo)
2,957

Land, buildings, and equipment (Palm Valley)
370

Total allocation of the fair value received
6,730

Mereenie liabilities given up, net
2,805

Gain on sale of assets
(36,166
)
Total
$
(26,631
)
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Debt (Tables)
9 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments
Long term debt relates to a $1.7 million note payable re-issued in January 2011 (the "Note Payable"). The Note Payable will be fully amortized in June 2014. The outstanding principal as of March 31, 2013, and June 30, 2012, consisted of the following:
 
March 31,
2013
 
June 30,
2012
 
(In thousands)
Note payable
$
498

 
$
870

Less current portion of note payable
(411
)
 
(480
)
Long term debt, excluding current portion
$
87

 
$
390

Minimum Future Principal Maturities
As of March 31, 2013, the minimum future principal maturities of long term debt were as follows:
 
Total
 
(In thousands)
One year
$
411

Two years
87

Total
$
498

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Asset Retirement Obligations (Tables)
9 Months Ended
Mar. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations Roll-Forward
The following table summarizes the asset retirement obligation activity for the nine months ended March 31, 2013:
 
Total
 
(In thousands)
June 30, 2012
$
7,784

Liabilities assumed
3

Accretion expense
329

Revision to estimate
(306
)
Effect of exchange rate changes
113

March 31, 2013
7,923

Less current asset retirement obligation
340

Long term asset retirement obligation
$
7,583

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Fair Value Measurements (Tables)
9 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the amounts of assets and liabilities carried at fair value by the level in which they are classified within the valuation hierarchy as follows:
 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
14,516

 
$

 
$

 
$
14,516

Securities available for sale (1)
125

 

 

 
125

 
$
14,641

 
$

 
$

 
$
14,641

Liabilities
 
 
 
 
 
 
 
Contingent consideration payable
$

 
$

 
$
4,244

 
$
4,244

 
 
 
 
 
 
 
 
 
June 30, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
41,215

 
$

 
$

 
$
41,215

Securities available for sale (1)
155

 

 

 
155

 
$
41,370

 
$

 
$

 
$
41,370

Liabilities
 
 
 
 
 
 
 
Contingent consideration payable
$

 
$

 
$
4,072

 
$
4,072

(1) Included in the unaudited condensed consolidated balance sheets under prepaid and other assets.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents a roll forward of liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended March 31, 2013:
 
Total
 
(In thousands)
June 30, 2012
$
4,072

Accretion of contingent consideration payable
172

March 31, 2013
$
4,244

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Stock Based Compensation (Tables)
9 Months Ended
Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Activity
The following table summarizes the stock option activity for the nine months ended March 31, 2013:
 
Number of
Shares
 
WAEPS (1)
June 30, 2012
6,753,125

 
$1.44
Granted
1,007,500

 
$1.10
Forfeited
(591,668
)
 
$1.29
March 31, 2013
7,168,957

 
$1.36
Weighted average remaining contractual term
4.8

years
(1) Weighted average exercise price per share
Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions
The fair value of stock option grants was estimated using the following weighted average assumptions for the nine months ended:
 
March 31,
 
2013
 
2012
Number of options
1,007,500
 
1,675,000
Weighted average grant date fair value per share
$0.61
 
$0.72
Expected dividend
$0.00
 
$0.00
Risk free interest rate
0.6
%
 
-
0.8
%
 
1.0
%
 
-
1.3
%
Expected life
5.1

 
-
6.0 years

 
5.3

 
-
6.0 years

Expected volatility (based on historical price)
60.3
%
 
-
63.5
%
 
61.2
%
 
-
62.8
%

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Equity (Tables)
9 Months Ended
Mar. 31, 2013
Equity [Abstract]
Treasury Stock Activity
The following table summarizes the Company's treasury stock activity for the nine months ended March 31, 2013:
 
Number of shares
 
Average price per share
 
Amount
 
(In thousands, except share and per share amounts)
Repurchases through the stock repurchase program
149,539

 
$0.916
 
$
137

Repurchase through the Collateral Agreement (1)
9,264,637

 
$0.993
 
$
9,196

 
9,414,176

 
 
 
$
9,333

(1) Purchase price of $10.0 million reduced by the fair value of the warrant.
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Earnings Per Share (Tables)
9 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted
The following table summarizes the computation of basic and diluted earnings per share:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
 
(In thousands, except share and per share amounts)
Net loss attributable to Magellan Petroleum Corporation
$
(4,332
)
 
$
(4,590
)
 
$
(16,928
)
 
$
(8,207
)
 
 
 
 
 
 
 
 
Basic weighted average shares outstanding
46,084,149

 
53,835,594

 
51,302,369

 
53,592,958

Add: dilutive effects of stock options and unvested stock grants (1)

 

 

 

Diluted weighted average common shares outstanding
46,084,149

 
53,835,594

 
51,302,369

 
53,592,958

 
 
 
 
 
 
 
 
Net loss per basic and diluted share outstanding
$
(0.09
)
 
$
(0.09
)
 
$
(0.33
)
 
$
(0.15
)
(1) There is no dilutive effect on earnings per share in periods with net losses.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Potentially dilutive securities excluded from the calculation of diluted shares outstanding include the following:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
Stock options
75,000

 
4,422,826

 
82,500

 
7,522,826

Non-vested restricted stock

 
204,167

 

 
204,167

Total
75,000

 
4,626,993

 
82,500

 
7,726,993

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Segment and Geographical Data (Tables)
9 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment
The Company conducts its operations through two wholly owned subsidiaries, NP, which operates in the United States, and MPA, which is primarily active in Australia. The following table presents each segment as follows:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
March 31
 
March 31
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
REVENUES:
 
 
 
 
 
 
 
NP
$
1,706

 
$
1,692

 
$
4,608

 
$
4,574

MPA
231

 
3,107

 
738

 
7,163

Corporate

 
6

 

 
6

Inter-segment elimination

 

 

 

Consolidated revenues
$
1,937

 
$
4,805

 
$
5,346

 
$
11,743

 
 
 
 
 
 
 
 
CONSOLIDATED NET LOSS:
 
 
 
 
 
 
 
NP
$
333

 
$
(894
)
 
$
(133
)
 
$
2,862

MPA
(3,396
)
 
(1,039
)
 
(10,913
)
 
(4,348
)
Corporate
(1,300
)
 
(2,652
)
 
(5,736
)
 
(6,711
)
Inter-segment elimination
31

 
(5
)
 
(146
)
 
(10
)
Consolidated net loss
$
(4,332
)
 
$
(4,590
)
 
$
(16,928
)
 
$
(8,207
)
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Oil and Gas Activities (Tables)
9 Months Ended
Mar. 31, 2013
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure
Note 13 - Oil and Gas Activities
The following table represents the capitalized costs under the successful efforts method for oil and gas properties as of:
 
March 31,
2013
 
June 30,
2012
 
(In thousands)
Proved oil and gas properties:
 
 
 
United Kingdom
$

 
$

United States
25,146

 
24,207

Australia
9,235

 
9,720

Less accumulated depletion, depreciation, and amortization
(5,842
)
 
(5,740
)
Total net proved oil and gas properties
$
28,539

 
$
28,187

 
 
 
 
Unproved oil and gas properties:
 
 
 
United Kingdom
$
1,074

 
$
2,598

United States
245

 
104

Australia
4,477

 
4,389

Total unproved oil and gas properties
$
5,796

 
$
7,091

 
 
 
 
Wells in Progress:
 
 
 
United Kingdom
$
693

 
$
2,026

United States
2,313

 
1,718

Australia

 

Total wells in progress
$
3,006

 
$
3,744

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Termination Costs (Tables)
9 Months Ended
Mar. 31, 2013
Termination Costs [Abstract]
Schedule of Restructuring and Related Costs [Table Text Block]
A reconciliation of the beginning and ending liability balance for charges to general and administrative expense and cash payments for the nine months ended March 31, 2013, is as follows:
 
Total
 
(In thousands)
June 30, 2012
$

Charges to general and administrative expense
842

Cash payments
(307
)
March 31, 2013
$
535

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Basis of Presentation (Description of Operations) (Details)
9 Months Ended
Mar. 31, 2013
segment
Presentation and Significant Accounting Policies Information [Line Items]
Number of Reportable Segments 2
Nautilus Poplar, LLC (NP)
Presentation and Significant Accounting Policies Information [Line Items]
Subsidiary, Ownership Percentage 100.00%
Magellan Petroleum Australia Limited (MPAL)
Presentation and Significant Accounting Policies Information [Line Items]
Subsidiary, Ownership Percentage 100.00%
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Acquisitions and Divestitures (Purchase Price Allocation and Other Disclosures) (Details) (Santos Sales Agreement)
9 Months Ended 12 Months Ended
Mar. 31, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2012
AUD
Mar. 31, 2013
Mereenie Operating Joint Venture
May 25, 2012
Palm Valley Joint Venture
May 25, 2012
Dingo Joint Venture
Disposal Group, Other Information [Abstract]
Ownership Interest Sold 35.00%
Joint Venture, Ownership Interest Sold by Third Party 48.00% 66.00%
Other Payments to Acquire Businesses 17,500,000
Goodwill, Written off Related to Sale of Business Unit 2,500,000
Disposal Group, Cost of Disposed Entity [Abstract]
Consideration received, net purchase price per Santos SA 25,493,000
Consideration received, purchase price adjustments 1,138,000
Consideration received total 26,631,000
Disposal Group, Consideration Received Allocation [Abstract]
Allocation of the consideration received, proved oil and gas properties (Palm Valley) 3,403,000
Allocation of the consideration received, unproved oil and gas properties (Dingo) 2,957,000
Allocation of the consideration received, land, buildings, and equipment (Palm Valley) 370,000
Total allocation of the fair value received 6,730,000
Mereenie liabilities given up, net 2,805,000
Gain on sale of assets $ 36,166,000
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Debt (Long Term Debt Instruments) (Details) (USD $)
9 Months Ended
Mar. 31, 2013
Jun. 30, 2012
Jan. 31, 2011
Long-term Debt, Current and Noncurrent [Abstract]
Note payable $ 498,000
Short term line of credit 637,000 50,000
Notes Payable | Note Payable Due June 2014
Long-term Debt, Current and Noncurrent [Abstract]
Note payable 498,000 870,000
Less current portion of note payable (411,000) (480,000)
Long term debt, excluding current maturities 87,000 390,000
Note payable issued amount 1,700,000
Basis Spread on Wall Street Journal Prime Rate 1.00%
Variable Rate Floor 6.25%
Variable Interest Rate Applicable at Period End 3.25%
Interest Rate at Period End 6.25%
Line of Credit | Working Capital Line of Credit
Long-term Debt, Current and Noncurrent [Abstract]
Variable Interest Rate Applicable at Period End 6.25%
Maximum Borrowing Capacity 1,000,000
Short term line of credit 600,000 50,000
Amount Available Under Line of Credit 300,000
Letter of Credit | Working Capital Line of Credit
Long-term Debt, Current and Noncurrent [Abstract]
Amount Outstanding 25,000
Collateralized Debt Obligations | Payment Guarantee
Long-term Debt, Current and Noncurrent [Abstract]
Guarantee Maximum Exposure $ 6,000,000
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Debt (Debt Maturities Schedule) (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Debt Disclosure [Abstract]
One year $ 411
Two years 87
Note payable $ 498
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Asset Retirement Obligations (Roll-Forward) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Jun. 30, 2012
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at beginning of period $ 7,784
Asset Retirement Obligation, Liabilities Incurred 3 0 3
Accretion expense 329
Revision to estimate (306)
Effect of exchange rate changes 113
Balance at end of period 7,923 7,923
Less current asset retirement obligation 340 340 329
Long term asset retirement obligation $ 7,583 $ 7,583 $ 7,455
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Fair Value Measurements (Details) (Fair Value, Measurements, Recurring, USD $)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2013
Fair Value, Inputs, Level 1
Jun. 30, 2012
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents $ 14,516,000 $ 41,215,000
Cash 3,900,000
Cash equivalents $ 10,700,000
Cash Equivalent, Maturity Period 90 days
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Fair Value Measurements (Assets and Liabilities Carried at Fair Value by Classification Level in Valuation Hierarchy) (Details) (Recurring, USD $)
In Thousands, unless otherwise specified
Mar. 31, 2013
Jun. 30, 2012
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents $ 14,516 $ 41,215
Securities available for sale 125 155
Assets 14,641 41,370
Contingent consideration payable 0 0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents 0 0
Securities available for sale 0 [1] 0 [1]
Assets 0 0
Contingent consideration payable 0 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents 0 0
Securities available for sale 0 [1] 0 [1]
Assets 0 0
Contingent consideration payable 4,244 4,072
Estimate of Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents 14,516 41,215
Securities available for sale 125 [1] 155 [1]
Assets 14,641 41,370
Contingent consideration payable $ 4,244 $ 4,072
[1] Included in the unaudited condensed consolidated balance sheets under prepaid and other assets.
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Fair Value Measurements (Unobservable Input Reconciliation) (Details) (Recurring, Level 3, USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2013
Recurring | Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning $ 4,072
Accretion Expense 172
Balance at end $ 4,244
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Income Taxes (Income Before Income Tax, Domestic and Foreign) (Details)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net Income (Loss) Before Income Taxes
Effective Income Tax Rate, Continuing Operations 5.46% 0.00%
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Stock Based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Jan. 16, 2013
2012 Stock Incentive Plan
Dec. 08, 2010
1998 Stock Incentive Plan
Jan. 16, 2013
Employee Stock Option [Member]
Jan. 16, 2013
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized 5,000,000 288,435
Share-based compensation expense $ 0.1 $ 0.4 $ 0.8 $ 1.3
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized $ 0.6 $ 0.6
Maximum number of shares allowed to be issued each year 1,000,000 500,000
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Stock Based Compensation (Stock Option Activity) (Details) (USD $)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance at beginning of year (in shares) 6,753,125
Granted (in shares) 1,007,500 [1] 1,675,000 [1]
Forfeited (in shares) (591,668)
Options outstanding at year end (in shares) 7,168,957
Weighted Average Remaining Contractual Term 4 years 9 months 18 days [2]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price per Share, Balance at beginning of year $ 1.44 [2]
Weighted Average Exercise Price Per Share, Granted $ 1.1 [2]
Weighted Average Exercise Price, Forfeited $ 1.29 [2]
Weighted Average Exercise Price per Share, Options outstanding at year end $ 1.36 [2]
Stock options | 1998 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant 5,396,769
Performance Based Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares) 75,000
Other Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares) 882,500
[1]
[2] Weighted average exercise price per share
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Stock Based Compensation (Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions) (Details) (USD $)
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Other 171,565
Number of options 1,007,500 [1] 1,675,000 [1]
Weighted-average grant date fair value per share $ 0.61 $ 0.72
Expected dividend $ 0 $ 0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, Minimum 60.30% 61.20%
Expected volatility, Maximum 63.50% 62.80%
Stock options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate 0.60% 1.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 5 years 1 month 17 days 5 years 3 months
Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate 0.80% 1.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 6 years 6 years
[1]
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Equity (Details) (USD $)
9 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Jun. 30, 2012
Class of Warrant or Right [Line Items]
Stock Repurchase Program, Authorized Amount $ 2,000,000
Treasury Stock, Shares, Acquired 9,414,176 0
Stock Issued During Period, Shares, Acquisitions 4,347,826
Repayments of Related Party Debt 10,000,000
Payments for Repurchase of Warrants 813,000 0
Treasury Stock, Value 9,333,000 0
Exercise Price of Warrants $ 1.36 [1] $ 1.44 [1]
Weighted Average Remaining Contractual Term 4 years 9 months 18 days [1]
Retired Warrant [Member]
Class of Warrant or Right [Line Items]
Payments for Repurchase of Warrants 813,000
Preferred stock, par value $ 0.9
Exercise Price of Warrants $ 1.15
Expected Dividend Payments 0
Risk free interest rate 0.20%
Weighted Average Remaining Contractual Term 1 year 6 months
Expected Volatility Rate 60.80%
Stock Repurchase Program
Class of Warrant or Right [Line Items]
Treasury Stock, Shares, Acquired 149,539
Treasury Stock, Value 137,000
Treasury Stock Acquired, Average Cost Per Share $ 0.916
Collateral Agreement [Member]
Class of Warrant or Right [Line Items]
Treasury Stock, Shares, Acquired 9,264,637
Treasury Stock, Value $ 9,196,000
Treasury Stock Acquired, Average Cost Per Share $ 0.993
[1] Weighted average exercise price per share
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Equity Treasury stock activity (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Mar. 31, 2013
Jun. 30, 2012
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Shares, Acquired 9,414,176 0
Treasury Stock, Value $ 9,333 $ 0
Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Shares, Acquired 149,539
Treasury Stock Acquired, Average Cost Per Share $ 0.916
Treasury Stock, Value 137
Collateral Agreement [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Shares, Acquired 9,264,637
Treasury Stock Acquired, Average Cost Per Share $ 0.993
Treasury Stock, Value $ 9,196
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Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Earnings Per Share [Abstract]
Net income (loss) attributable to Magellan Petroleum Corporation $ (4,332) $ (4,590) $ (16,928) $ (8,207)
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Basic weighted-average shares outstanding (in shares) 46,084,149 53,835,594 51,302,369 53,592,958
Add: dilutive effects of stock options and unvested stock grants 0 [1] 0 [1] 0 [1] 0 [1]
Diluted weighted-average common shares outstanding (in shares) 46,084,149 53,835,594 51,302,369 53,592,958
Basic net loss per common share (dollars per share) $ (0.09) $ (0.09) $ (0.33) $ (0.15)
[1] There is no dilutive effect on earnings per share in periods with net losses.
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Earnings Per Share (Schedule of Antidilutive Securities) (Details)
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities 75,000 4,626,993 82,500 7,726,993
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities 75,000 4,422,826 82,500 7,522,826
Non-vested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities 0 204,167 0 204,167
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Segment and Geographical Data (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
segment
Mar. 31, 2012
Segment Reporting Information [Line Items]
Number of Reportable Segments 2
Revenues $ 1,937 $ 4,805 $ 5,346 $ 11,743
Revenue, Net 1,937 4,805 5,346 11,743
Consolidated net income (loss) (4,332) (4,590) (16,928) (8,207)
Nautilus Poplar, LLC (NP)
Segment Reporting Information [Line Items]
Revenues 1,706 1,692 4,608 4,574
Consolidated net income (loss) 333 (894) (133) 2,862
Magellan Petroleum Australia Limited (MPAL)
Segment Reporting Information [Line Items]
Revenues 231 3,107 738 7,163
Consolidated net income (loss) (3,396) (1,039) (10,913) (4,348)
Corporate
Segment Reporting Information [Line Items]
Revenues 0 6 0 6
Consolidated net income (loss) (1,300) (2,652) (5,736) (6,711)
Inter-segment Elimination
Segment Reporting Information [Line Items]
Revenues 0 0 0 0
Consolidated net income (loss) $ 31 $ (5) $ (146) $ (10)
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Commitments (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Business Acquisition, Contingent Consideration, Potential Cash Payment $ 5
Accrued Income Taxes, Current 1
Amount of Income Tax Liability, If Not Paid by Related Party $ 1
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Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Mar. 31, 2013
Mar. 31, 2012
US Federal Tax Withholding
Mar. 31, 2013
US Federal Tax Withholding
Accrued and Other Liabilities
Mar. 31, 2012
Young Energy Prize S.A. (YEP)
US Federal Tax Withholding
Mar. 31, 2012
White Bear, LLC
US Federal Tax Withholding
Oct. 31, 2009
Nautilus Poplar, LLC (NP)
owner
Mar. 31, 2012
Nautilus Poplar, LLC (NP)
US Federal Tax Withholding
Related Party Transaction [Line Items]
Loss Contingency, Estimate of Possible Loss $ 0.1 $ 0.6 $ 1.3 $ 2
Business Acquisition, Percentage of Membership Interests Acquire 83.50%
Number of Majority Owners 2
Loss Contingency Accrual, at Carrying Value 0.1
Noninterest Income, Other Operating Income $ 0.4
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Oil and Gas Activities (Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Mar. 31, 2012
Jun. 30, 2012
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Impairment loss $ 890 $ 0
Proved 28,539 28,187
Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment, Period Increase (Decrease) (5,842) (5,740)
Unproved 5,796 7,091
Exploration Costs 3,006 3,744
Impairment of Oil and Gas Properties 0 0 890 0
Exploration Abandonment and Impairment Expense 2,233 944
United States
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Proved 25,146 24,207
Unproved 245 104
Exploration Costs 2,313 1,718
Australia
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Proved 9,235 9,720
Unproved 4,477 4,389
Exploration Costs 0 0
United Kingdom
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Proved 0 0
Unproved 1,074 2,598
Exploration Costs $ 693 $ 2,026
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Termination Costs (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Mar. 31, 2013
Termination Costs [Abstract]
Restructuring Costs $ 842
Supplemental Unemployment Benefits, Severance Benefits 0
Payments for Postemployment Benefits (307)
Supplemental Unemployment Benefits, Severance Benefits $ 535
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Subsequent Events (Details) (USD $)
9 Months Ended 12 Months Ended
Mar. 31, 2013
Jun. 30, 2012
Subsequent Event [Line Items]
Treasury Stock, Shares, Acquired 9,414,176 0
Common stock, par value $ 0.01 $ 0.01
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