Magellan Petroleum has reported consolidated results for the fiscal year ended June 30, 2008. Results were mixed and included a 33% increase in gross revenues to $40.9 million. Although operating income increased to $3.3 million, results included a one-time $13.3 million ((AUS) $14.6 million) settlement of a dispute with the Australian Tax Office (ATO). The ATO settlement was the primary cause of the Company's consolidated net loss of $8.9 million ($.21 per share) as compared to net income of $447,000 ($.01 per share) on revenues of $30.7 million in fiscal 2007.
He further stated that, "the non cash charges of $18 million for depletion, depreciation and amortization included $3.4 million related to the acquisition of the MPAL minority interest which was acquired in 2006. Total revenues are up 33% over last year, principally due to the successful oil drilling program in the Nockatunga oil fields and increased oil prices. Also, our cash and cash equivalents at the end of 2008 was $34.6 million, an increase of $6.2 million over last year."
Exploration and dry hole costs for fiscal 2008 were down $2.2 million over 2007 due to reduced exploration expenditures in the Cooper Basin.
Walter McCann, Magellan's Chairman, said, "With the ATO matter behind us, we are focusing our efforts on maximizing the value of our Australian assets and our U.K. exploration efforts. In Australia we face important challenges as our Mereenie and Palm Valley contracts expire in June 2009 and 2012, respectively. We are working diligently to market the significant remaining reserves at these fields and are prudently examining alternatives that would best align expenses with various levels of future revenue."
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