Magellan Petroleum Corporation declared the completion of its previously announced Australian asset swap with Santos Ltd. Under the terms of the agreement, Magellan has:
• Received A$25 million in net cash proceeds and expects to receive post-closing adjustments in an additional amount of approximately A$3 million within the next sixty days from Santos;
• Increased ownership to 100% in the Palm Valley and Dingo natural gas fields;
• Sold all of its interests in the Mereenie oil and natural gas field to Santos;
• Executed a 17-year gas sales contract with Santos for the sale of natural gas production in an amount of up to 23 Bcf from the Palm Valley field, which production volumes have in turn been sold by Santos to a sizeable mining customer in Australia; and
• Retained the opportunity to earn up to A$17.5 million in bonus payments based on Mereenie achieving certain production milestones over the next 20 years.