Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 08, 2014 | Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
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 | 'No | ' | ' |
Entity Common Stock Shares Outstanding | ' | 45,586,778 | ' |
Entity Public Float | ' | ' | $42,236,074 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $16,422 | $32,469 |
Securities available-for-sale | 11,935 | 44 |
Accounts receivable — trade | 886 | 852 |
Inventories | 739 | 555 |
Prepaid and other assets | 2,105 | 1,378 |
Total current assets | 32,087 | 35,298 |
PROPERTY AND EQUIPMENT, NET (SUCCESSFUL EFFORTS METHOD): | ' | ' |
Proved oil and gas properties | 29,335 | 35,377 |
Less accumulated depletion, depreciation, amortization, and accretion | -3,575 | -5,814 |
Unproved oil and gas properties | 550 | 5,312 |
Wells in progress | 21,296 | 923 |
Land, buildings, and equipment (net of accumulated depreciation of $483 and $1,810 as of June 30, 2014, and 2013, respectively) | 368 | 1,382 |
Net property and equipment | 47,974 | 37,180 |
OTHER NON-CURRENT ASSETS: | ' | ' |
Goodwill | 1,174 | 2,174 |
Deferred income taxes | 0 | 7,217 |
Other long term assets | 200 | 403 |
Total other non-current assets | 1,374 | 9,794 |
Total assets | 81,435 | 82,272 |
CURRENT LIABILITIES: | ' | ' |
Short term line of credit | 0 | 51 |
Current portion of note payable | 0 | 390 |
Current portion of asset retirement obligations | 397 | 476 |
Accounts payable | 3,586 | 1,948 |
Accrued and other liabilities | 2,121 | 2,757 |
Accrued dividends | 429 | 202 |
Total current liabilities | 6,533 | 5,824 |
LONG TERM LIABILITIES: | ' | ' |
Asset retirement obligations | 2,476 | 6,403 |
Contingent consideration payable | 1,852 | 3,940 |
Other long term liabilities | 118 | 163 |
Total long term liabilities | 4,446 | 10,506 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ' | ' |
Preferred Stock, Value, Outstanding | 24,539 | 23,502 |
EQUITY: | ' | ' |
Common stock (par value $0.01 per share): Authorized 300,000,000 shares, issued, 55,004,838 and 54,057,159 as of June 30, 2014, and 2013, respectively | 550 | 540 |
Treasury stock (at cost): 9,425,114 and 9,414,176 shares as of June 30, 2014 and 2013, respectively | -9,344 | -9,333 |
Capital in excess of par value | 92,986 | 90,786 |
Accumulated deficit | -36,266 | -50,079 |
Accumulated other comprehensive (loss) income | -2,009 | 10,526 |
Total equity attributable to common stockholders | 45,917 | 42,440 |
Total liabilities, preferred stock and equity | 81,435 | 82,272 |
Series A Preferred Stock | ' | ' |
CURRENT LIABILITIES: | ' | ' |
Accrued dividends | 429 | 202 |
LONG TERM LIABILITIES: | ' | ' |
Preferred Stock, Value, Outstanding | $24,539 | $23,502 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | Series A Preferred Stock | Series A Preferred Stock | ||
Accumulated depreciation | $483 | $1,810 | ' | ' |
Preferred stock, par value (usd per share) | ' | ' | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | ' | 28,000,000 | 28,000,000 |
Preferred stock, outstanding | 20,089,436 | 19,239,734 | 20,089,436 | 19,239,734 |
Preferred stock, liquidation preference | ' | ' | $28,220 | $27,227 |
Common stock, par value (usd per share) | $0.01 | $0.01 | ' | ' |
Common stock, authorized | 300,000,000 | 300,000,000 | ' | ' |
Common stock, outstanding | 55,004,838 | 54,057,159 | ' | ' |
Treasury Stock, Shares, Acquired | 9,425,114 | 9,414,176 | ' | ' |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES: | ' | ' |
REVENUE FROM OIL PRODUCTION | $7,601 | $6,131 |
OPERATING EXPENSES: | ' | ' |
Lease operating | 6,257 | 4,851 |
Depletion, depreciation, amortization, and accretion | 1,123 | 1,121 |
Exploration | 3,484 | 7,907 |
General and administrative | 9,085 | 9,645 |
Impairment | 0 | 890 |
Total operating expenses | 19,949 | 24,414 |
Loss from operations | -12,348 | -18,283 |
OTHER (EXPENSE) INCOME: | ' | ' |
Net interest (expense) income | -243 | 298 |
Fair value revision of contingent consideration payable | 2,403 | 458 |
Other income | 146 | 698 |
Total other income | 2,306 | 1,454 |
Loss from continuing operations | -10,042 | -16,829 |
Loss from discontinued operations, net of tax | -4,461 | -2,938 |
Gain on disposal of discontinued operations, net of tax | 30,012 | 0 |
Net income (loss) from discontinued operations | 25,551 | -2,938 |
Net income (loss) attributable to Magellan Petroleum Corporation | 15,509 | -19,767 |
Preferred stock dividends and accretion of preferred stock | -1,696 | -722 |
Net income (loss) attributable to common stockholders | $13,813 | ($20,489) |
Earnings per common share: | ' | ' |
Weighted average number of basic shares outstanding | 45,348,840 | 49,642,083 |
Weighted average number of diluted shares outstanding | 45,348,840 | 49,642,083 |
Basic earnings (loss) per common share: | ' | ' |
Loss from continuing operations (usd per share) | ($0.26) | ($0.35) |
Net income (loss) from discontinued operations (usd per share) | $0.56 | ($0.06) |
Net income (loss) attributable to common stockholders (usd per share) | $0.30 | ($0.41) |
Diluted earnings (loss) per common share: | ' | ' |
Loss from continuing operations (usd per share) | ($0.26) | ($0.35) |
Net income (loss) from discontinued operations (usd per share) | $0.56 | ($0.06) |
Net income (loss) attributable to common stockholders (usd per share) | $0.30 | ($0.41) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income (loss) attributable to Magellan Petroleum Corporation | $15,509 | ($19,767) |
Foreign currency translation gain (loss) | 488 | -569 |
Reclassification of foreign currency translation gain to earnings upon sale of foreign subsidiary | -5,767 | 0 |
Unrealized holding losses on securities available-for-sale | -7,256 | -112 |
Other comprehensive loss, net of tax | -12,535 | -681 |
Comprehensive income (loss) attributable to Magellan Petroleum Corporation | $2,974 | ($20,448) |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | ||||||
Amount, Beginning Balance at Jun. 30, 2012 | $72,908 | $538 | $90,753 | $0 | ($29,590) | $11,207 |
Shares, Beginning Balance at Jun. 30, 2012 | ' | 53,835,594 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | -19,767 | ' | ' | ' | -19,767 | ' |
Other comprehensive loss, net of tax | -681 | ' | ' | ' | ' | -681 |
Stock and stock based compensation (in shares) | ' | 221,565 | ' | ' | ' | ' |
Stock and stock based compensation | 848 | 2 | 846 | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | -9,333 | ' | ' | -9,333 | ' | ' |
Stock options exercised (in shares) | 0 | ' | ' | ' | ' | ' |
Warrants repurchased and retired | -813 | ' | -813 | ' | ' | ' |
Preferred stock accretion to fair value | -520 | ' | ' | ' | -520 | ' |
Preferred stock dividend | -202 | ' | ' | ' | -202 | ' |
Amount, Ending Balance at Jun. 30, 2013 | 42,440 | 540 | 90,786 | -9,333 | -50,079 | 10,526 |
Shares, Ending Balance at Jun. 30, 2013 | ' | 54,057,159 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | 15,509 | ' | ' | ' | 15,509 | ' |
Other comprehensive loss, net of tax | -12,535 | ' | ' | ' | ' | -12,535 |
Stock and stock based compensation (in shares) | ' | 716,664 | ' | ' | ' | ' |
Stock and stock based compensation | 2,009 | 7 | 2,002 | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | -11 | ' | ' | -11 | ' | ' |
Stock options exercised (in shares) | 275,000 | 231,015 | ' | ' | ' | ' |
Stock options exercised, net of shares withheld to satisfy employee tax obligations | 201 | 3 | 198 | ' | ' | ' |
Preferred stock dividend | -1,696 | ' | ' | ' | -1,696 | ' |
Amount, Ending Balance at Jun. 30, 2014 | $45,917 | $550 | $92,986 | ($9,344) | ($36,266) | ($2,009) |
Shares, Ending Balance at Jun. 30, 2014 | ' | 55,004,838 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net income (loss) attributable to Magellan Petroleum Corporation | $15,509 | ($19,767) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Foreign transaction loss | 165 | 18 |
Depletion, depreciation, amortization, and accretion | 1,123 | 1,121 |
Fair value revision of contingent consideration payable | -2,403 | -458 |
Accretion expense of contingent consideration payable | 315 | 326 |
Gain on disposal of Amadeus Basin assets | -30,012 | 0 |
Exploration costs previously capitalized | 733 | 2,299 |
Stock based compensation | 2,009 | 848 |
Impairment loss | 0 | 890 |
Severance benefit costs | 0 | 418 |
Net changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 52 | 84 |
Inventories | -184 | -47 |
Prepayments and other current assets | -694 | 82 |
Accounts payable and accrued liabilities | 1,719 | -3,079 |
Net cash used in operating activities | -11,668 | -17,265 |
INVESTING ACTIVITIES: | ' | ' |
Additions to property and equipment | 20,923 | 2,732 |
Proceeds from Amadeus Basin sale | 18,554 | 0 |
Net cash used in investing activities | -2,369 | -2,732 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of common stock | 201 | 0 |
Repurchase of common stock | -11 | -9,333 |
Repurchase of warrant | 0 | -813 |
Proceeds from issuance of preferred stock, net of $520 issuance cost | 0 | 22,982 |
Short term debt issuances | 1,000 | 2,000 |
Short term debt repayments | -1,441 | -1,999 |
Long term debt repayments | 0 | -480 |
Payment of Preferred stock dividend | -429 | 0 |
Net cash (used in) provided by financing activities | -680 | 12,357 |
Net cash used in operating activities of discontinued operations | -31 | -766 |
Net cash used in investing activities of discontinued operations | -1,412 | -192 |
Net cash used in discontinued operations | -1,443 | -958 |
Effect of exchange rate changes on cash and cash equivalents | 113 | -148 |
Net decrease in cash and cash equivalents | -16,047 | -8,746 |
Cash and cash equivalents at beginning of period | 32,469 | 41,215 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 16,422 | 32,469 |
Cash (receipts) payments: | ' | ' |
Interest paid | 18 | 63 |
Interest received | -102 | -698 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' |
Preferred stock dividends paid in kind | 1,037 | 0 |
Securities available-for-sale received upon sale of Amadeus Basin assets | 19,147 | 0 |
Unrealized holding loss on securities available-for-sale | -7,256 | -112 |
Revision to estimate of asset retirement obligation | 0 | -758 |
Accounts payable related to capital expenditure | 846 | 81 |
Accrued preferred stock dividends | 429 | 202 |
Accretion of preferred stock to fair value | 0 | 520 |
Amounts in accrued and other liabilities related to Sopak | 1,571 | 1,000 |
Amounts in prepaid and other assets related to Sopak | $1,571 | $1,000 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parentheticals) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' |
Payments of stock issuance costs | $520 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Basis Of Presentation | ' | |||||||
Note 1 - Basis of Presentation | ||||||||
Description of Operations | ||||||||
Magellan Petroleum Corporation (the "Company" or "Magellan" or "we") is an independent oil and gas exploration and production company focused on the development of a CO2-enhanced oil recovery ("CO2-EOR") program at Poplar Dome ("Poplar") in eastern Montana and the exploration of conventional and unconventional hydrocarbon resources in the Weald Basin, located in Sussex County, England, onshore United Kingdom ("UK"). Magellan also owns an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farmout; and an 11% ownership stake in Central Petroleum Limited (ASX: CTP), a Brisbane based exploration and production company that operates one of the largest holdings of prospective onshore acreage in Australia. The Company conducts its operations through three wholly owned subsidiaries corresponding to the geographic areas in which the Company operates: Nautilus Poplar LLC ("NP") in the US, Magellan Petroleum (UK) Limited ("MPUK") in the UK, and Magellan Petroleum Australia Pty Ltd ("MPA") in Australia. | ||||||||
Basis of Presentation | ||||||||
The accompanying consolidated financial statements include the accounts of Magellan and its wholly owned subsidiaries, NP, MPUK and MPA, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). All intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the prior year net income, accumulated deficit, net assets, or total shareholders' equity. The Company has evaluated events or transactions through the date of issuance of this report in conjunction with the preparation of these consolidated financial statements. All amounts presented are in US dollars, unless otherwise noted. Amounts expressed in Australian currency are indicated as "AUD." | ||||||||
Use of Estimates | ||||||||
The preparation of 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 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 currency of our foreign subsidiaries is their local currency. Assets and liabilities of foreign subsidiaries are translated to US dollars at period-end exchange rates, and our consolidated statements of operations and cash flows are translated at average exchange rates during the reporting periods. Resulting translation adjustments are recorded in accumulated other comprehensive income, a separate component of stockholders' equity. A component of accumulated other comprehensive income will be released into income when the Company executes a partial or complete sale of an investment in a foreign subsidiary or a group of assets of a foreign subsidiary considered a business and/or when the Company no longer holds a controlling financial interest in a foreign subsidiary or group of assets of a foreign subsidiary considered a business. | ||||||||
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. 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 consolidated statements of operations. | ||||||||
Cash and Cash Equivalents and Concentration of Credit Risk | ||||||||
The Company considers all highly liquid short term investments with original maturities of three months or less at the date of acquisition to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short term nature of these instruments. | ||||||||
The Company's financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held in several UK and Australian bank accounts and time deposit accounts that have terms of 90 days or less. The Company regularly assesses the level of credit risk we are exposed to and whether there are better ways of managing credit risk. The Company invests its cash and cash equivalents with reputable financial institutions. At times, balances deposited may exceed FDIC insured limits. The Company has not incurred any losses related to these deposits. | ||||||||
Securities Available-for-Sale | ||||||||
Securities available-for-sale are comprised of investments in publicly traded securities and are carried at quoted market prices. Unrealized gains and losses are excluded from earnings and recorded as a component of accumulated other comprehensive income in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. As a result of this review, no impairment was recorded for the years ended June 30, 2014, or 2013, respectively. | ||||||||
Accounts Receivable | ||||||||
Trade accounts receivable consist mainly of receivables from oil and gas purchasers. For receivables from working interest partners, the Company typically has the ability to withhold future revenue disbursements to recover non-payment of joint interest billings. Generally, oil and gas receivables are collected within two months. The collectability of accounts receivable is continuously monitored and analyzed based upon historical experience. The use of judgment is required to establish a provision for allowance for doubtful accounts for specific customer collection issues identified. The allowance for doubtful accounts was $0 as of June 30, 2014, and 2013, respectively. | ||||||||
Inventories | ||||||||
Our inventories consist of oil and gas drilling or repair items such as tubing, casing, chemicals, operating supplies, ordinary maintenance materials, and parts and production equipment for use in future drilling operations or repair operations. All inventories are carried at the lower of cost or net realizable value. | ||||||||
Oil and Gas Exploration and Production Activities | ||||||||
The Company follows the successful efforts method of accounting for its oil and gas exploration and production activities. Under this method, all property acquisition costs, and costs of exploratory and development wells are capitalized until a determination is made that the well has found proved reserves or is deemed noncommercial. If an exploratory well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs, geological and geophysical expenses. Noncommercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred. | ||||||||
Depreciation, depletion, and amortization ("DD&A") of capitalized costs related to proved oil and gas properties is calculated on a property-by-property basis using the units-of-production method based upon proved reserves. The computation of DD&A takes into consideration restoration, dismantlement, and abandonment costs as well as the anticipated proceeds from salvaging equipment. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses. | ||||||||
The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement, and no gain or loss is recognized as long as the treatment does not significantly affect the units-of-production depletion rate. A gain or loss is recognized for all other sales of producing properties and is included in the accompanying consolidated statements of operations. | ||||||||
The Company reviews its proved oil and gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future cash flows of its oil and gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to fair value. The factors used to determine fair value include, but are not limited to, recent sales prices of comparable properties, the present value of estimated future cash flows, net of estimated operating and development costs, using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected. | ||||||||
Land, Buildings, and Equipment | ||||||||
Land, buildings, and equipment are recorded at cost. Costs of renewals and improvements that substantially extend the useful lives of the assets are capitalized. Maintenance and repair costs are expensed when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to fifteen years. | ||||||||
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. | ||||||||
As of June 30, 2014 and 2013, management concluded that there is no impairment of goodwill. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. | ||||||||
As of June 30, 2014, $0.7 million of recorded goodwill related to NP, $0.2 million related to MPUK, and $0.3 million related to MPA. Changes in goodwill can be summarized as follows for the years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Fiscal year opening balance | $ | 2,174 | $ | 2,174 | ||||
Sale of Amadeus Basin assets (see Note 3) | (1,000 | ) | — | |||||
Fiscal year closing balance | $ | 1,174 | $ | 2,174 | ||||
Asset Retirement Obligations | ||||||||
The Company recognizes an estimated liability for future costs associated with the plugging and abandonment of its oil and gas properties. A liability for the fair value of an asset retirement obligation and corresponding increase in the carrying value of the related long-lived asset are recorded at the time a well is acquired or the liability to plug is legally incurred. The increase in carrying value is included in proved oil and gas properties in the accompanying consolidated balance sheets. The Company depletes the amount added to proved oil and gas property costs, net of estimated salvage values, and recognizes expense in connection with the accretion of the discounted liability over the remaining estimated economic lives of the respective oil and gas properties (see Note 6). | ||||||||
Revenue Recognition | ||||||||
The Company derives revenue primarily from the sale of produced oil. Oil revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability of the revenue is probable. Transportation costs are included in production costs. | ||||||||
Major Customers | ||||||||
The Company's consolidated oil production revenue is derived from its NP segment and is generated from a single customer for the years ended June 30, 2014, and 2013, respectively. | ||||||||
Stock Based Compensation | ||||||||
Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options are expensed on a straight-line basis over the vesting period. Market based options are expensed based on a graded amortization method, the expense is recognized if the derived service period is satisfied, even if the market condition is not achieved. Performance based options ("PBOs") are recognized when the achievement of the performance conditions is considered probable. Accordingly, PBOs are expensed 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. | ||||||||
The fair value of the stock options is determined on the grant date and is affected by our stock price and other assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the term of the awards, risk free interest rates, expected dividends, and the expected option exercise term. The Company estimates the fair value of PBOs and time based stock options using the Black-Scholes-Merton pricing model. The simplified method is used to estimate the expected term of stock options due to a lack of related historical data regarding exercise, cancellation, and forfeiture. For market based stock options, the fair value is estimated using Monte Carlo simulation techniques. | ||||||||
Accounting for Income Taxes | ||||||||
The Company follows the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance for deferred tax assets when it is more likely than not that such assets will not be recovered. | ||||||||
GAAP prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements uncertain tax positions that the Company has taken or expects to take in its tax returns. Under GAAP, the Company recognizes tax positions when it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company has presumed that its positions will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The next step consists of measurement. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. A tax position is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. An uncertain income tax position will not be recognized if it does not meet the more-likely-than-not threshold. To appropriately account for income tax matters, the Company is required to make significant judgments and estimates regarding the recoverability of deferred tax assets, the likelihood of the outcome of examinations of tax positions that may or may not be currently under review, and potential scenarios involving settlements of such matters. Changes in these estimates could materially impact the consolidated financial statements. There are no uncertain tax positions that would meet the more-likely-than-not recognition threshold for the fiscal years ended June 30, 2014, or 2013, respectively. | ||||||||
The Company has adopted an accounting policy to record all tax related interest under interest expense and tax related penalties under general and administrative expense in the consolidated statement of operations. | ||||||||
Financial Instruments | ||||||||
The carrying value for cash and cash equivalents, accounts receivable, accounts payable, and debt approximates fair value based on the timing of the anticipated cash flows and current market conditions. | ||||||||
Segment Information | ||||||||
As of June 30, 2014, the Company determined, based on the criteria of Financial Accounting Standards Board (the "FASB") ASC Topic 280, it operates in three segments, NP, MPUK and MPA, as well as a head office, Magellan ("Corporate"), which is treated as a cost center. As of June 30, 2014, these three operating segments met the minimum quantitative threshold to qualify for separate segment reporting. | ||||||||
The Company's chief operating decision maker is J. Thomas Wilson (President and CEO of the Company), who reviews the results and manages operations of the Company in the three reporting segments of NP, MPUK, MPA, and Corporate. The presentation of all segment information herein reflects the manner in which the Company's management monitors performance and allocates resources. For information pertaining to our reporting segments, see Note 13. | ||||||||
Earnings (Loss) per Common Share | ||||||||
Income and losses per common share are based upon the weighted average number of common and common equivalent shares outstanding during the period. The effect of potential dilutive securities in the determinations of diluted earnings per share are the dilutive effect of stock options, non-vested restricted stock, and the shares of Series A convertible preferred stock. The potential dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potential dilutive impact of the shares of Series A convertible preferred stock is determined using the "if-converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing dilutive shares if the effect would be antidilutive. The preferred stock is convertible at a rate of one common share to one preferred share. We did not include any stock options or common stock issuable upon the conversion of the Series A convertible preferred stock in the calculation of diluted earnings (loss) per share during the fiscal year ended June 30, 2014, and 2013, respectively, as they would be antidilutive. | ||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Comprehensive income (loss) is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net income (loss). | ||||||||
Recently Issued Accounting Standards | ||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective July 1, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | ||||||||
In March 2013, the FASB issued ASU No. 2013-05, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of a foreign subsidiary or foreign group of assets comprising a business. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | ||||||||
In May 2014, the FASB issued ASU 2014-09, which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2018; early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. | ||||||||
There are no new significant accounting standards applicable to the Company that have been issued but not yet adopted by the Company as of June 30, 2014. |
Sale_of_Amadeus_Basin_Assets
Sale of Amadeus Basin Assets | 12 Months Ended |
Jun. 30, 2014 | |
Extractive Industries [Abstract] | ' |
Sale of Amadeus Basin Assets | ' |
Note 2 - Sale of Amadeus Basin Assets | |
On March 31, 2014 (the "Central Closing Date"), pursuant to the Share Sale and Purchase Deed dated February 17, 2014 (the "Sale Deed"), the Company sold its Amadeus Basin assets, the Palm Valley and Dingo gas fields ("Palm Valley" and "Dingo," respectively), to Central Petroleum Limited ("Central") through the sale of the Company's wholly owned subsidiary, Magellan Petroleum (N.T.) Pty. Ltd, to Central's wholly owned subsidiary Central Petroleum PV Pty. Ltd ("Central PV"). In exchange for the assets, on March 31, 2014, Central paid to Magellan (i) a first cash payment of AUD $15.0 million, and (ii) 39.5 million newly issued shares of Central stock (ASX: CTP), equivalent to an ownership interest in Central of approximately 11%. Central also made a second and final cash payment of AUD $5.0 million to Magellan on April 15, 2014. The Sale Deed provides for certain customary purchase price adjustments, including the payment by Central of capital expenditures incurred by Magellan during the period from October 1, 2013, and March 31, 2014, less AUD $485 thousand. | |
The Sale Deed also provides that the Company is entitled to receive 25% of the revenues generated at the Palm Valley gas field from gas sales when the volume-weighted gas price realized at Palm Valley exceeds AUD $5.00/Gigajoule ("GJ") and AUD $6.00/GJ for the first 10 years following the Central Closing Date and for the following 5 years, respectively, with such prices to be escalated in accordance with the Australian CPI. Between the third and fifth anniversaries of the Central Closing Date, inclusive, the Company may seek from Central a one-time payment (the "Bonus Discharge Amount") corresponding to the present value, assuming an annual discount rate of 10%, of any expected remaining bonus payments in exchange for foregoing future bonus payments. If the Company receives the Bonus Discharge Amount, bonus payments and the Bonus Discharge Amount together may not exceed AUD $7.0 million. The Company also retained its rights to receive any and all bonuses (the "Mereenie Bonus") payable by Santos Ltd ("Santos") and contingent upon production at the Mereenie oil and gas field achieving certain threshold levels. The Mereenie Bonus was established in fiscal year 2011 pursuant to the terms of the asset swap agreement between the Company and Santos for the sale of the Company's interest in Mereenie to Santos and the Company's purchase of the interests of Santos in the Palm Valley and Dingo gas fields. The Company has not recognized a contingent asset related to the Bonus Discharge Amount or Mereenie Bonus, as such amounts are not reasonably assured. For additional information, see Note 3. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
Note 3 - Discontinued Operations | ||||||||
As discussed in detail in Note 2, on March 31, 2014, pursuant to the Sale Deed, the Company completed the sale of Palm Valley and Dingo to Central PV. The assets of Palm Valley and Dingo were previously reported under the MPA segment, accordingly, results of operations associated with this sale were reclassified to discontinued operations for fiscal year 2014. Prior year amounts related to discontinued operations in the consolidated statements of operations and statements of cash flows have also been reclassified to conform to the current year presentation. Summarized results of the Company's discontinued operations are as follows: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue | $ | 814 | $ | 939 | ||||
Loss from discontinued operations, net of tax | $ | (4,461 | ) | $ | (2,938 | ) | ||
As of June 30, 2014, the gain on disposal of discontinued operations can be summarized as follows: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Assets and liabilities sold: | ||||||||
Property and equipment, net | $ | (10,100 | ) | $ | (9,627 | ) | ||
Deferred income taxes | (7,217 | ) | (7,217 | ) | ||||
Goodwill allocated to the disposal group | (1,000 | ) | (1,000 | ) | ||||
Asset retirement obligations | 4,457 | 4,575 | ||||||
Purchase price adjustments | 743 | — | ||||||
Total assets and liabilities of discontinued operations | (13,117 | ) | (13,269 | ) | ||||
Consideration: | ||||||||
First cash installment - received on Central Closing Date | 13,859 | |||||||
Second cash installment - received on April 15, 2014 | 4,695 | |||||||
Stock of Central | 19,147 | |||||||
Total consideration | 37,701 | |||||||
Reclassification of foreign currency translation gains to earnings upon sale of foreign subsidiary | 5,767 | |||||||
Transaction costs | (339 | ) | ||||||
Gain on disposal of discontinued operations, net of tax | $ | 30,012 | ||||||
Securities_AvailableforSale
Securities Available-for-Sale | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Securities Available-for-Sale | ' | |||||||||||||||
Note 4 - Securities Available-for-Sale | ||||||||||||||||
The following table presents the amortized cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale equity securities as follows: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Amortized | Gross unrealized gains | Gross unrealized losses | Fair | |||||||||||||
cost | value | |||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | $ | 19,339 | $ | — | $ | (7,404 | ) | $ | 11,935 | |||||||
June 30, 2013 | ||||||||||||||||
Amortized | Gross unrealized gains | Gross unrealized losses | Fair | |||||||||||||
cost | value | |||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | $ | 192 | $ | — | $ | (148 | ) | $ | 44 | |||||||
Debt
Debt | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Note 5 - Debt | |
The outstanding principal of a $1.7 million note payable by NP, re-issued in January 2011 (the "Note Payable"), was fully amortized as of June 30, 2014. As of June 30, 2013, the minimum future principal maturities of the Note Payable, totaling $390 thousand, were considered a current liability. | |
The variable interest rate of the Note Payable is based upon the Wall Street Journal Prime Rate (the "Index") plus 1.00%, subject to a floor rate of 6.25%. As of June 30, 2013, the Index was 3.25%, resulting in an interest rate of 6.25% per annum. Under the Note Payable, NP is subject to certain customary financial and restrictive covenants. As of June 30, 2013, NP was in compliance with all financial and restrictive covenants. | |
As of June 30, 2013, the Note Payable and Line of Credit were collateralized by a first mortgage and an assignment of production from Poplar and were guaranteed by Magellan up to $6.0 million, not to exceed the amount of the principal owed. The carrying amount of the Note Payable approximates its fair value, due to its variable interest rate, which resets based on market rates. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
Asset Retirement Obligations | ' | |||||||
Note 6 - Asset Retirement Obligations | ||||||||
The estimated valuation of asset retirement obligations ("AROs") is based on the Company's historical experience and management's 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 consolidated statements of operations. If the recorded value of ARO requires revision, the revision is recorded to both the ARO and the asset retirement capitalized cost. | ||||||||
The following table summarizes the asset retirement obligation activity for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Fiscal year opening balance | $ | 6,879 | $ | 7,784 | ||||
Liabilities assumed | 7 | 3 | ||||||
Accretion expense | 367 | 433 | ||||||
Sale of assets (1) | (4,457 | ) | — | |||||
Revision to estimate (2) | — | (758 | ) | |||||
Effect of exchange rate changes | 77 | (583 | ) | |||||
Fiscal year closing balance | 2,873 | 6,879 | ||||||
Less current asset retirement obligations | 397 | 476 | ||||||
Long term asset retirement obligations | $ | 2,476 | $ | 6,403 | ||||
(1) Related to the sale of the Amadeus Basin assets | ||||||||
(2) The revision primarily resulted from a change in the expected timing of estimated abandonment cost for our oil and gas properties. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Note 7 - 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 using market participant assumptions at the measurement date. 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 the consideration of factors specific to the asset or liability. The Company's policy is to recognize transfers in 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 above for all periods presented. During the years ended June 30, 2014, and 2013, there have been no transfers in or out of Level 1, Level 2, or Level 3. | ||||||||||||||||
Assets and liabilities measured on a recurring basis | ||||||||||||||||
The Company's financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried at cost, which approximates fair value due to the short term maturity of these instruments. The recorded value of the Line of Credit and Note Payable (see Note 5), approximates fair value due to their variable rate structure. | ||||||||||||||||
The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Securities available-for-sale | $ | 11,935 | $ | — | $ | — | $ | 11,935 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 1,852 | $ | 1,852 | ||||||||
June 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Securities available-for-sale | $ | 44 | $ | — | $ | — | $ | 44 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 3,940 | $ | 3,940 | ||||||||
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, consistent with the Company's reserve report for NP, to estimate future production bonus payments, and a discount rate that is reflective of the Company's credit adjusted borrowing rate. Inputs are reviewed by management on an annual basis and the liability is estimated by converting estimated future production bonus payments to a single net present value using a discounted cash flow model. Payments of future production bonuses are sensitive to Poplar's 60 days rolling gross production average. The contingent consideration payable would increase with significant production increases and/or a reduction in the discount rate. | ||||||||||||||||
The following table presents information about significant unobservable inputs to the contingent consideration payable measured at fair value on a recurring basis for the fiscal years ended: | ||||||||||||||||
June 30, | ||||||||||||||||
Description | Valuation technique | Significant unobservable inputs | 2014 | 2013 | ||||||||||||
Contingent consideration payable | Discounted cash flow model | Discount rate | 8.00% | 8.00% | ||||||||||||
First production payout | 30-Jun-15 | 31-Dec-15 | ||||||||||||||
Second production payout | NA | 31-Dec-16 | ||||||||||||||
Revisions to the fair value estimate of the contingent consideration payable is recorded in the consolidated statements of operations under fair value revision of contingent consideration payable. Accretion expense related to the contingent consideration payable is recorded in the consolidated statements of operations under net interest (expense) income. As of June 30, 2014, the downward revision were a result of the fact that a second production payout cannot be reasonably assumed on the basis of current production estimates corresponding to the estimated proved reserves of Poplar at June 30, 2014. | ||||||||||||||||
The following table presents a roll forward of the contingent consideration payable for the fiscal years ended: | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year beginning balance | $ | 3,940 | $ | 4,072 | ||||||||||||
Accretion expense | 315 | 326 | ||||||||||||||
Revision to estimate | (2,403 | ) | (458 | ) | ||||||||||||
Fiscal year closing balance | $ | 1,852 | $ | 3,940 | ||||||||||||
Assets and liabilities measured on a nonrecurring basis | ||||||||||||||||
Due to the unobservable nature of the significant inputs required to measure these items at fair value, they are classified within Level 3. The Company also utilizes fair value to perform an annual impairment test on its oil and gas properties, or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. Fair value is estimated using expected undiscounted future cash flows from oil and gas properties. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and are also classified within Level 3. For the fiscal years ended June 30, 2014, or 2013, no events or circumstances were identified that would indicate that an impairment of our oil and gas properties has occurred. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Note 8 - Income Taxes | ||||||||
The domestic and foreign components of our income (loss) from continuing operations are as follows for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
United States | $ | 4,262 | $ | (9,449 | ) | |||
Australia | (11,563 | ) | (3,333 | ) | ||||
United Kingdom | (2,741 | ) | (4,047 | ) | ||||
Loss from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
The following reconciles the Company's effective tax rate to the federal statutory tax rate for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Tax provision computed per federal statutory rate | $ | (3,013 | ) | $ | (5,048 | ) | ||
State taxes, net of federal benefit | 549 | (40 | ) | |||||
Foreign rate differential | 417 | (60 | ) | |||||
Non taxable Australian revenue | (3,144 | ) | 288 | |||||
Goodwill write off | (58 | ) | — | |||||
Decreases related to lapse of applicable statute of limitations | — | 685 | ||||||
Change in valuation allowance | 3,476 | 999 | ||||||
Taxable dividends from subsidiaries, net of foreign tax credits | 3,586 | (1,053 | ) | |||||
Foreign tax credit adjustment | (761 | ) | 787 | |||||
Capital loss adjustment | 73 | 309 | ||||||
Impact of rate change | 291 | 140 | ||||||
Foreign currency translation differential | (434 | ) | 2,912 | |||||
Contingent consideration payable write off | (710 | ) | (45 | ) | ||||
Other items | (272 | ) | 126 | |||||
Consolidated income tax expense (benefit) | $ | — | $ | — | ||||
The following summarizes components of our income tax provision for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Consolidated current income tax provision | — | — | ||||||
Consolidated deferred income tax provision | — | — | ||||||
Consolidated income tax provision | $ | — | $ | — | ||||
The consolidated income tax provision is summarized as follows: | ||||||||
Continuing operations | $ | — | $ | — | ||||
Discontinued operations | $ | 7,217 | $ | (1,267 | ) | |||
Effective tax rate for continuing operations | — | % | — | % | ||||
Significant components of the Company's deferred tax assets and liabilities can be summarized as follows for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Deferred tax liabilities: | ||||||||
Land, buildings and equipment | $ | (4,030 | ) | $ | (2,946 | ) | ||
Other items | (157 | ) | (124 | ) | ||||
Total deferred tax liabilities | (4,187 | ) | (3,070 | ) | ||||
Deferred tax assets: | ||||||||
Asset retirement obligations | 923 | 817 | ||||||
Net operating losses, capital losses, and foreign tax credit carry forwards | 13,891 | 10,342 | ||||||
United Kingdom exploration costs and net operating losses | 3,851 | 3,555 | ||||||
Investments | 2,378 | 32 | ||||||
Stock option compensation | 2,839 | 1,971 | ||||||
Australian capitalized legal costs | 143 | 258 | ||||||
Other items | 141 | 219 | ||||||
Total deferred tax asset | 24,166 | 17,194 | ||||||
Valuation allowance | (19,979 | ) | (14,124 | ) | ||||
Net long term deferred tax asset | $ | — | $ | — | ||||
For the fiscal year ended June 30, 2014, the valuation allowance increased by $5.9 million, primarily due to additional book losses on continuing operations. Of the $5.9 million increase, $2.3 million was recorded to other comprehensive income and is related to the unrealized loss on Central shares. | ||||||||
During fiscal year 2014 the Company sold its Amadeus Basin assets held by MPA, which is reported under discontinued operations. The current year reduction in gain reported in discontinued operations of $7.2 million is related to the disposal of the Australian Petroleum Resource Rent Tax deferred tax asset, refer Note 3. | ||||||||
The US gross deferred tax assets and liabilities as of June 30, 2014, and 2013, respectively, consist primarily of foreign tax credits, property, plant and equipment, and stock options. The Australian deferred tax assets and liabilities from continuing operations as of June 30, 2014 consist primarily of unrealized capital loss, and net operating loss carry forwards. As of June 30, 2013, the Australian deferred tax assets from continuing operations consisted primarily of legal expenses. The Australian capital loss and net operating losses are carried forward indefinitely. The UK deferred tax assets and liabilities as of June 30, 2014, and 2013, respectively, consist primarily of capital allowance carry forwards which are carried forward indefinitely. | ||||||||
After reviewing all positive and negative evidence, a valuation allowance is recorded against all the net deferred tax assets in the US, Australia and the UK. As a result, the Company has recorded no deferred tax assets as of June 30, 2014. | ||||||||
As of June 30, 2014, the Company remains subject to examination in the following major tax jurisdictions for the tax years indicated below: | ||||||||
Jurisdiction | Tax Years Subject | |||||||
to Examination: | ||||||||
US Federal | 2011 - 2013 | |||||||
Colorado | 2011 - 2013 | |||||||
Connecticut | 2010 | |||||||
Maine | 2011 - 2013 | |||||||
Montana | 2010 - 2013 | |||||||
Australia | 2010 - 2013 | |||||||
United Kingdom | 2010 - 2013 | |||||||
At June 30, 2014, the Company had net operating loss and foreign tax credit carry forwards for US Federal and State Income Tax purposes, respectively, which are scheduled to expire periodically as follows: | ||||||||
State Net Operating Losses | Federal Foreign Tax Credit | |||||||
(In thousands) | ||||||||
Expires: | ||||||||
2017 | $ | 7 | $ | 310 | ||||
2018 | — | — | ||||||
2019 | — | 1,411 | ||||||
2020 | 399 | 624 | ||||||
2021 | 176 | 1,443 | ||||||
2022 | — | 3,655 | ||||||
2023 and thereafter | — | 2,716 | ||||||
Total | $ | 582 | $ | 10,159 | ||||
There are no uncertain tax positions that would meet the more-likely-than-not recognition threshold for the fiscal years ended June 30, 2014, or 2013. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||
Note 9 - 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 replaced 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 to receive incentive compensation awards by the Compensation, Nominating and Governance Committee (the "CNG Committee") of the Board of Directors of the Company (the "Board"), which is the plan administrator for the 2012 Stock Incentive Plan. 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 the remaining number of 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 that may be granted to any one participant 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 time based, performance based, or market based vesting provisions. During the fiscal year ended June 30, 2014, the Company granted a total of 3,000,000 stock options under the 2012 Stock Incentive Plan, of which 1,500,000 were granted as PBOs, and 1,500,000 were granted with market based vesting provisions. Performance metrics used to measure the potential vesting of the PBOs consist of: (i) completing the drilling of the CO2-EOR pilot program at Poplar (weighted 10%); (ii) board approval of a full field CO2-EOR development project at Poplar (weighted 40%); (iii) sale of substantially all of the Amadeus Basin assets (weighted 20%); (iv) approval of a farmout agreement or the ability to participate in drilling one well in the Weald Basin with internally developed funding, including proceeds from a sale of assets (weighted 20%); and (v) approval and execution of a farmout agreement for drilling one well in the Bonaparte Basin (weighted 10%). Potential vesting of the market based stock options are subject to the Company maintaining a $2.35 per share closing price for 10 consecutive trading days and median stock price of $2.35 over a period of 90 days. As of June 30, 2014, performance metrics (i), (iii) and (iv) were met. | |||||||||||||||||||
As of June 30, 2014, 2,175,000 stock options with market based vesting provisions or PBOs had not vested, and 365,107 shares, including forfeited shares, were available for future issuance. During the fiscal year ended June 30, 2014, zero options were issued outside of the 2012 Stock Incentive Plan. Options outstanding have expiration dates ranging from November 28, 2015, through October 15, 2023. | |||||||||||||||||||
The following table summarizes the stock option activity for the fiscal years ended: | |||||||||||||||||||
June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Number of | WAEPS (1) | Number of | WAEPS (1) | ||||||||||||||||
Shares | Shares | ||||||||||||||||||
Fiscal year beginning balance | 7,888,957 | $1.34 | 6,753,125 | $1.44 | |||||||||||||||
Granted | 3,000,000 | $1.03 | 1,627,500 | $1.23 | |||||||||||||||
Exercised | (275,000 | ) | $1.07 | — | $0.00 | ||||||||||||||
Forfeited (2) | (121,666 | ) | $1.03 | (491,668 | ) | $1.23 | |||||||||||||
Options outstanding at end of fiscal year | 10,492,291 | $1.26 | 7,888,957 | $1.34 | |||||||||||||||
Weighted average remaining contractual term of outstanding options | 6.0 years | 5.9 years | |||||||||||||||||
(1) Weighted average exercise price per share. | |||||||||||||||||||
(2) Fiscal year 2013 includes the effect of 100,000 historically granted stock options forfeited erroneously. | |||||||||||||||||||
The total fair value of stock options vesting during the fiscal years ended June 30, 2014, and 2013, was $1.2 million, and $0.8 million, respectively. During the fiscal year ended June 30, 2014, 275,000 stock options were exercised for a number of 231,015 common stock shares, net of shares withheld to satisfy employee tax obligations. During the fiscal year ended June 30, 2013, zero stock options were exercised. Cash received from the exercise of stock options for the fiscal years ended June 30, 2014, and 2013, respectively, was $201 thousand, and zero. The following table summarizes options outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||
Range of | Number | Weighted average remaining contractual life | WAEPS (1) | Number | Weighted average remaining contractual life | WAEPS (1) | |||||||||||||
exercise | of | of | |||||||||||||||||
prices | shares | shares | |||||||||||||||||
$0.79 | - | $1.04 | 3,057,500 | 9.2 years | $1.02 | 827,500 | 9.1 years | $1.02 | |||||||||||
$1.05 | - | $1.11 | 1,415,000 | 8.0 years | $1.08 | 1,004,998 | 7.6 years | $1.09 | |||||||||||
$1.12 | - | $1.18 | 1,191,666 | 7.7 years | $1.13 | 624,999 | 7.2 years | $1.13 | |||||||||||
$1.19 | - | $1.40 | 3,100,000 | 1.9 years | $1.20 | 3,100,000 | 1.9 years | $1.20 | |||||||||||
$1.41 | - | $2.41 | 1,728,125 | 5.0 years | $2.03 | 1,728,125 | 5.0 years | $2.03 | |||||||||||
10,492,291 | 6.0 years | $1.26 | 7,285,622 | 4.7 years | $1.36 | ||||||||||||||
Aggregate intrinsic value | $ | 9,857,615 | $ | 6,152,424 | |||||||||||||||
(1) Weighted average exercise price per share. | |||||||||||||||||||
The fair value of shares issued under the 2012 Stock Incentive Plan were estimated using the following weighted-average assumptions for the fiscal years ended: | |||||||||||||||||||
June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
PBOs (1) | Market Based (2) | Time based | |||||||||||||||||
and PBOs | |||||||||||||||||||
Number of options | 1,500,000 | 1,500,000 | 1,627,500 | ||||||||||||||||
Weighted-average grant date fair value per share | $0.57 | $0.69 | $0.61 | ||||||||||||||||
Expected dividend | $0.00 | $0.00 | $0.00 | ||||||||||||||||
Forfeiture rate | 0 | 0 | 0 | ||||||||||||||||
Risk free interest rate | 1.5 | % | - | 1.70% | 2.80% | 0.6 | % | - | 1.30% | ||||||||||
Expected life (years) | 0.4 | - | 1.6 | 2.6 | 5.1 | - | 6 | ||||||||||||
Expected volatility (based on historical price) | 61.7 | % | - | 61.90% | 66.60% | 60.3 | % | - | 63.50% | ||||||||||
(1) The terms related to these PBOs were estimated using an average probabilistic weighted method. | |||||||||||||||||||
(2) The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term. | |||||||||||||||||||
Stock Compensation Expense | |||||||||||||||||||
The Company recorded $2.0 million and $0.8 million of stock compensation expense for the fiscal years ended June 30, 2014, and 2013, respectively. Stock based compensation is included under general and administrative expense in the consolidated statements of operations. At June 30, 2014, there was a total of $1.2 million in unrecognized stock compensation expense related to stock options granted. This cost is expected to be recognized over a weighted-average period of 1.7 years. The amount of unrecognized compensation expense noted above does not necessarily represent the amount that will ultimately be realized by the Company in its consolidated statement of operations. During the fiscal year ending June 30, 2015, it is expected that an additional 1,315,832 stock options will vest. | |||||||||||||||||||
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, 2013, and June 30, 2014, the Company issued a total of 266,664 shares of its common stock to non-employee directors pursuant to this policy. |
Preferred_Stock
Preferred Stock | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
Preferred Stock | ' | |||||||||||||
Note 10 - Preferred Stock | ||||||||||||||
The Company's certificate of incorporation provides for the issuance of up to 50.0 million preferred shares. Pursuant to the Series A Purchase Agreement discussed below, 28.0 million of the total authorized preferred shares was allocated to the Series A Preferred Stock class. | ||||||||||||||
Series A Convertible Preferred Stock Financing | ||||||||||||||
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. Pursuant to the terms of the Series A Purchase Agreement, on May 17, 2013 (the "Closing Date"), the Company issued 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 $1.22149381 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 are convertible into one share of the Company's Common Stock, par value $0.01 per share (the "Common Stock"), at an initial conversion price equal to the Purchase Price. | ||||||||||||||
The Series A Purchase Agreement also includes the following key terms: | ||||||||||||||
• | Dividends. Holders of Series A Preferred Stock are entitled to a dividend equivalent to 7.0% per annum on the face value, which is the Purchase Price plus any accumulated unpaid dividends, payable quarterly in arrears. Dividends are generally payable in kind ("PIK") (in the form of additional shares of Series A Preferred Stock) or in cash, at the Company's option. | |||||||||||||
• | Conversion. Each share of Series A Preferred Stock is convertible at any time, at the holder's option, into one share of Common Stock, based on an initial face amount and conversion price equal to the Purchase Price. The Series A Preferred Stock is entitled to customary anti-dilution protections. | |||||||||||||
• | Voting. The Series A Preferred Stock is entitled to vote on an as-converted basis with the Common Stock. | |||||||||||||
• | Forced Conversion. At any time after the third anniversary of the Closing Date, the Company will have the right to cause the holders to convert all, but not less than all, of the shares of Series A Preferred Stock into shares of Common Stock, if, among other conditions: (i) the average per share price of Common Stock equals or exceeds 200% of the Conversion Price for a period of 20 out of 30 consecutive trading days, (ii) the average daily trading volume of shares of Common Stock exceeds an amount equal to the number of shares of Common Stock issuable upon the conversion of all outstanding shares of Series A Preferred Stock divided by 45, and (iii) the resale of shares of Common Stock into which such shares are converted is covered by an effective shelf registration statement, or such shares of Common Stock can be sold under Rule 144 under the US Securities Act of 1933, as amended (the "Securities Act"). | |||||||||||||
• | Redemption. At any time after the third anniversary of the Closing Date, and upon 30 days prior written notice, the Company may elect to redeem all, but not less than all, shares of Series A Preferred Stock for an amount equal to the greater of (i) the closing sale price of the Common Stock on the date the Company delivers such notice multiplied by the number of shares of Common Stock issuable upon conversion of the outstanding Series A Preferred Stock, and (ii) a cash payment that, when considering all cash dividends already paid, allows the holders of Series A Preferred Stock to achieve a 20% annualized internal rate of return on the then outstanding Series A Preferred Stock. The holders of Series A Preferred Stock will have the right 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. | |||||||||||||
• | Change in Control. In the event of a Change in Control (as defined in the Certificate of Designations) of the Company, holders of Series A Preferred Stock will have the option to (i) convert Series A Preferred Stock into Common Stock immediately prior to the Change in Control, (ii) in certain circumstances, receive stock or securities in the acquirer of the Company having substantially identical terms as those of the Series A Preferred Stock, or (iii) receive a cash payment that, when considering all cash dividends already paid, allows the holders of Series A Preferred Stock to achieve a 20% annualized internal rate of return on the then outstanding Series A Preferred Stock. | |||||||||||||
The Company has determined that a Change in Control (as defined in the Certificate of Designations) is not solely within the Company's control, and therefore the Series A Preferred Stock is presented in the consolidated balance sheets under temporary equity, outside of permanent equity. | ||||||||||||||
• | Liquidation. Upon a liquidation event, holders of Series A Preferred Stock are entitled to a non-participating liquidation preference per share of Series A Preferred Stock equal to (i) 115% of the Purchase Price until the second anniversary of the Closing Date, (ii) 110% of the Purchase Price after the second anniversary of the Closing Date until the third anniversary of the Closing Date, (iii) 105% of the Purchase Price after the third anniversary of the Closing Date until the fourth anniversary of the Closing Date, and (iv) thereafter, at the Purchase Price, plus, in each case, any accrued and accumulated dividends on such share. | |||||||||||||
• | Ranking. Series A Preferred Stock ranks senior to Common Stock with respect to dividend rights and rights on liquidation, winding up, and dissolution. | |||||||||||||
• | Board Representation. For so long as One Stone owns at least 15% or 10% of the fully diluted shares of Common Stock (assuming full conversion of the Series A Preferred Stock), the holders of a majority of the then outstanding shares of Series A Preferred Stock have the right to appoint two members or one member, respectively, to the Company's Board. These directors are not subject to director elections by the holders of Common Stock at the Company's annual meetings of shareholders. | |||||||||||||
• | Minority Veto Rights. For so long as One Stone owns at least 10% of the fully diluted Common Stock (assuming full conversion of the Series A Preferred Stock), the holders of a majority of the then outstanding shares of Series A Preferred Stock will hold veto rights with respect to (i) capital expenditures greater than $15.0 million that are not provided for in the then-current annual budget; (ii) certain related-party transactions; (iii) changes to the Company's principal line of business; and (iv) an increase in the size of the Board to a number greater than 12. | |||||||||||||
The Series A Purchase Agreement and a related separate Registration Rights Agreement also include the following key terms: | ||||||||||||||
• | Standstill. For a period of two years following the date of the Series A Purchase Agreement, One Stone is generally prohibited from (i) acquiring direct or beneficial control of any additional equity securities of the Company or any rights thereto; (ii) making, or in any way participating in, directly or indirectly, any solicitation of proxies to vote in any election contest or initiate, propose or otherwise solicit stockholders of the Company for approval of any stockholder proposals; (iii) participating in or forming any voting group or voting trust with respect to any voting securities of the Company; and (iv) seeking to influence, modify, or control management, the Board, or any business, policies, or actions of the Company. Until such time as One Stone no longer holds any Series A Preferred Stock, One Stone is prohibited from engaging, directly or indirectly, in any short selling of the Common Stock. | |||||||||||||
• | Registration Rights. Holders of Series A Preferred Stock are entitled to resale registration rights with respect to the shares of Common Stock issuable upon conversion of the Series A Preferred Stock. | |||||||||||||
The Company has analyzed the embedded features of the Series A Preferred Stock and has determined that none of the embedded features is required under US GAAP to be bifurcated from the Series A Preferred Stock and accounted for separately as a derivative. The Company recorded the transaction by recognizing the fair value of the Series A Preferred Stock at the time of issuance in the amount of $23.5 million. The Company will accrete the Series A Preferred Stock to the redemption value if events or circumstances indicate that redemption is probable. | ||||||||||||||
For the fiscal years ended June 30, 2014, and 2013, respectively, the Company recorded preferred stock dividends of $1.7 million and $0.5 million, and accrued dividends in the amount of $429 thousand and $202 thousand related to the Series A Preferred Stock. For the fiscal year ended June 30, 2013, the Company recorded accretion in the amount of $202 thousand to reflect the initial estimated fair value at which the preferred stock was recorded. | ||||||||||||||
The following table summarizes the Series A Preferred Stock activity for the fiscal years ended: | ||||||||||||||
June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of shares issued | Amount | Number of shares issued | Amount | |||||||||||
(In thousands, except share amounts) | ||||||||||||||
Fiscal year opening balance | 19,239,734 | $ | 23,502 | — | $ | — | ||||||||
Issuance of Series A Preferred Stock | — | — | 19,239,734 | 23,502 | ||||||||||
PIK dividend shares issued, for previously accrued dividend | 164,607 | 202 | — | — | ||||||||||
Current year PIK dividends shares issued | 685,095 | 835 | — | — | ||||||||||
Fiscal year closing balance | 20,089,436 | $ | 24,539 | 19,239,734 | $ | 23,502 | ||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
Stockholders' Equity | ' | |||||||||||||
Note 11 - Stockholders' Equity | ||||||||||||||
Treasury Stock | ||||||||||||||
On September 24, 2012, the Company announced that its Board 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. During November 2012, the Company repurchased 149,539 shares pursuant to this program. As of June 30, 2014, $1.9 million in shares of Common Stock remained authorized for repurchase under this program. The authorization expired on August 21, 2014, with no further repurchases of stock. | ||||||||||||||
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 Collateral Agreement was subsequently amended on January 15, 2013, and completed on January 16, 2013. 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 the 9,264,637 shares of Common Stock, resulting in a value per share of $0.993 for the shares of Common Stock purchased. 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 fiscal years ended: | ||||||||||||||
June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of shares issued | Amount | Number of shares issued | Amount | |||||||||||
(In thousands, except share amounts) | ||||||||||||||
Fiscal year opening balance | 9,414,176 | $ | 9,333 | — | $ | — | ||||||||
Repurchases through the stock repurchase program | — | — | 149,539 | 137 | ||||||||||
Repurchase through the Collateral Agreement (1) | — | — | 9,264,637 | 9,196 | ||||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock | 10,938 | 11 | — | — | ||||||||||
Fiscal year closing balance | 9,425,114 | $ | 9,344 | 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 described above. 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 consolidated balance sheet. | ||||||||||||||
Assumptions used in estimating the fair value of the warrant included: (i) the Common Stock market price on the repurchase date of $0.90 per share; (ii) the warrant exercise price of $1.15 per share; (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%. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share | ' | |||||||
Note 12 - Earnings Per Share | ||||||||
The following table summarizes the computation of basic and diluted earnings (loss) per share for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands, except share and per share amounts) | ||||||||
Loss from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
Preferred stock dividend | (1,696 | ) | (722 | ) | ||||
Net loss from continuing operations, net of dividends attributable to preferred stock | (11,738 | ) | (17,551 | ) | ||||
Net income (loss) from discontinued operations | 25,551 | (2,938 | ) | |||||
Net income (loss) attributable to common stockholders | $ | 13,813 | $ | (20,489 | ) | |||
Basic weighted-average shares outstanding | 45,348,840 | 49,642,083 | ||||||
Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) | — | — | ||||||
Diluted weighted-average common shares outstanding | 45,348,840 | 49,642,083 | ||||||
Basic net (loss) earnings per common share: | ||||||||
Net loss from continuing operations, net of dividends attributable to preferred stock (2) | ($0.26) | ($0.35) | ||||||
Net income (loss) from discontinued operations | $0.56 | ($0.06) | ||||||
Net income (loss) attributable to common stockholders | $0.30 | ($0.41) | ||||||
Diluted net (loss) earnings per common share | ||||||||
Net loss from continuing operations, net of dividends attributable to preferred stock (2) | ($0.26) | ($0.35) | ||||||
Net income (loss) from discontinued operations | $0.56 | ($0.06) | ||||||
Net income (loss) attributable to common stockholders | $0.30 | ($0.41) | ||||||
(1) All diluted earnings per share calculations are dictated by the results from continuing operations, accordingly there was no dilutive effect on earnings per share in the periods presented. | ||||||||
(2) Loss from continuing operations is reduced by the contractual amount of Preferred stock dividends that must be expensed for the current period. | ||||||||
There is no dilutive effect on earnings per share in periods with net losses from continuing operations. Stock options or shares of Common Stock issuable upon the conversion of the Series A Preferred Stock were not considered in the calculation of diluted weighted average common shares outstanding, as they would be antidilutive. Potentially dilutive securities excluded from the calculation of diluted shares outstanding in fiscal years with net losses from continuing operations are as follows: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
In-the-money stock options | 6,335,622 | 75,000 | ||||||
Non-vested restricted stock | 450,000 | 50,000 | ||||||
Total potentially dilutive securities | 6,785,622 | 125,000 | ||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Information | ' | |||||||
Note 13 - Segment Information | ||||||||
The Company conducts its operations through three wholly owned subsidiaries: NP, which operates in the US; MPUK, which includes our operations in the UK; and MPA, which is primarily active in Australia. Oversight for these subsidiaries is provided by Corporate which is treated as a cost center. Due to the sale of the Amadeus Basin assets held by MPA, results of operations related to Palm Valley and Dingo are included in results of operations from discontinued operations. | ||||||||
The following table presents segment information for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue from NP oil production | $ | 7,601 | $ | 6,131 | ||||
Net income (loss) from continuing operations: | ||||||||
NP (1) | $ | 1,828 | $ | (326 | ) | |||
MPA | (934 | ) | (3,555 | ) | ||||
MPUK | (2,585 | ) | (4,726 | ) | ||||
Corporate | (8,351 | ) | (8,222 | ) | ||||
Consolidated net losses from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
Assets: | ||||||||
NP | $ | 27,299 | $ | 26,093 | ||||
MPA | 14,073 | 32,735 | ||||||
MPUK (2) | 4,486 | 2,021 | ||||||
Corporate | 111,113 | 96,229 | ||||||
Inter-segment eliminations (3) | (75,536 | ) | (74,806 | ) | ||||
Consolidated assets | $ | 81,435 | $ | 82,272 | ||||
Expenditures for additions to long lived assets: | ||||||||
NP | $ | 20,334 | $ | 2,124 | ||||
MPUK | 526 | 350 | ||||||
Corporate | 63 | 258 | ||||||
Consolidated expenditures for long lived assets | $ | 20,923 | $ | 2,732 | ||||
(1) The downward revision of the contingent consideration payable resulted in $2.1 million of other income associated with our NP segment, refer Note 7. | ||||||||
(2) Refer Note 20 for disclosures relating to non-cash charges to capitalized costs. | ||||||||
(3) Asset inter-segment eliminations are primarily derived from investments in subsidiaries. | ||||||||
The following table summarizes other significant items for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Depletion, depreciation, amortization, and accretion: | ||||||||
NP | $ | 977 | $ | 988 | ||||
Corporate | 146 | 133 | ||||||
Consolidated depletion, depreciation, amortization, and accretion | $ | 1,123 | $ | 1,121 | ||||
Lease operating: | ||||||||
NP | $ | 6,257 | $ | 4,851 | ||||
Exploration: | ||||||||
NP | $ | 541 | $ | 398 | ||||
MPA | 436 | 3,809 | ||||||
MPUK | 2,507 | 3,700 | ||||||
Consolidated exploration | $ | 3,484 | $ | 7,907 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Note 14 - Commitments and Contingencies | ||||
Operating leases. The following table summarizes the Company's future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, as of June 30, 2014: | ||||
Total | ||||
(In thousands) | ||||
Amounts payable in fiscal year: | ||||
2015 | $ | 262 | ||
2016 | 268 | |||
2017 | 273 | |||
2018 | 90 | |||
Total | $ | 893 | ||
Rental expenses for each of the years ended June 30, 2014, and 2013, were $0.6 million and, $0.6 million, respectively. | ||||
Contingent production payments. 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 chief executive officer of the Company, has an approximate 52% interest in such contingent payments. See Note 7 above for information regarding the estimated discounted fair value of the future contingent consideration payable related to the Nautilus Transaction. | ||||
Sopak Collateral Agreement. The Company has estimated that there is the potential for a statutory liability for required US Federal tax withholdings, and related penalties and interest, related to the Collateral Agreement as described in Note 11. As a result, we have recorded a total liability of approximately $1.6 million and $1.0 million as of June 30, 2014, and 2013, respectively, under accrued and other liabilities in the consolidated balance sheets included in this report. 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 of $1.6 million and $1.0 million as of June 30, 2014, and 2013, respectively, under prepaid and other assets in the consolidated balance sheets. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 15 - Related Party Transactions | |
US Federal tax withholding. 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 US 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 US 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 US Federal tax withholdings. | |
With regards to White Bear, Mr. Bogachev filed his US 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 US income tax return. As a result, the Company initiated a disclosure process with the IRS. During October 2013, the Company received a letter from the IRS stating that the disclosure process was completed. The effect of this transaction on the consolidated statements of operations for the year ended June 30, 2013, resulted in other income of $0.4 million representing the difference between the original estimate and the estimated final liability of $0.1 million related to the YEP I withholding obligation. This transaction had no effect on the Company for the fiscal year ended June 30, 2014. | |
Key Energy Services. J. Robinson West, the Chairman of the Board of Directors of the Company, also serves as a non-employee director on the board of directors for Key Energy Services Inc. ("KES"). KES performed contract drilling rig services for the Company in Poplar during the second quarter of fiscal year 2014. The total contract fees paid to KES during the fiscal year ended June 30, 2014, was $2.2 million. As of June 30, 2014, there were no unpaid contract fees related to KES. | |
Devizes International Consulting Limited. A director of Celtique, with which the Company co-owns equally several licenses in the UK, is also the sole owner of Devizes International Consulting Limited ("Devizes"). Devizes performs consulting related services to MPUK. The Company recorded $161 thousand and $82 thousand of consulting fees related to Devizes for the fiscal years ended June 30, 2014, and 2013, respectively. |
Employee_Severance_Costs
Employee Severance Costs | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Employee Severance Costs | ' | |||||||||||
Note 16 - 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 fiscal year ended June 30, 2013, the Company expensed total employee-related severance costs of $0.8 million to general and administrative expense in the consolidated statements of operations. | ||||||||||||
On March 31, 2014, the Company sold its interests in Palm Valley and Dingo to Central. Pursuant to the Sale Deed, the Company incurred severance costs payable in connection with the termination of certain MPA employees. For the fiscal year ended June 30, 2014, the Company expensed total employee-related severance costs of $1.2 million to loss from discontinued operations, net of tax, in the consolidated statement of operations. | ||||||||||||
The Company does not expect any additional benefits or other associated costs related to the terminations of employment as discussed above. The liability related to these severance costs, as of June 30, 2013, is included in the consolidated balance sheets under accrued and other liabilities. A reconciliation of the beginning and ending liability balance for charges to the consolidated statements of operations and cash payments is as follows for the fiscal years ended: | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Severance - Discontinued Operations | Severance - Termination Benefits | Severance - Termination Benefits | ||||||||||
(In thousands) | ||||||||||||
Fiscal year beginning balance | $ | — | $ | 418 | $ | — | ||||||
Charges to general and administrative expense | — | — | 837 | |||||||||
Charges to loss from discontinued operations, net of tax | 1,210 | — | — | |||||||||
Cash payments | (1,210 | ) | (418 | ) | (419 | ) | ||||||
Fiscal year closing balance | $ | — | $ | — | $ | 418 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
Note 17 - Accumulated Other Comprehensive Income (Loss) | ||||||||||||
The following table represents the changes in components of accumulated other comprehensive income (loss), net of tax, for the fiscal year ended: | ||||||||||||
June 30, 2014 | ||||||||||||
Foreign currency translation | Unrealized investment holding loss | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year opening balance | $ | 10,674 | $ | (148 | ) | $ | 10,526 | |||||
Changes in comprehensive income (loss): | ||||||||||||
Other comprehensive income (loss) before reclassification | 488 | (7,256 | ) | (6,768 | ) | |||||||
Amounts reclassified from other comprehensive loss (1) | (5,767 | ) | — | (5,767 | ) | |||||||
Net current period other comprehensive loss | (5,279 | ) | (7,256 | ) | (12,535 | ) | ||||||
Fiscal year ended June 30, 2014 | $ | 5,395 | $ | (7,404 | ) | $ | (2,009 | ) | ||||
(1) Reclassification of foreign currency translation gain to earnings upon the sale or substantially complete liquidation of an investment in a foreign entity. The reclassified gain is reported in the consolidated statement of operations under gain on disposal of discontinued operations, net of tax. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 18 - Subsequent Events | |
Stock Based Compensation. Pursuant to the Company's compensation policy, a total of 96,330 shares of common stock were issued to non-employee directors on July 1, 2014. | |
On July 16, 2014 (effective August 15, 2014), C. Mark Brannum resigned as Vice President - General Counsel and Secretary of the Company. As a result Mr. Brannum forfeited 980,210 unvested stock options and 100,000 unvested shares of restricted stock. | |
Subsequent to the fiscal year ended June 30, 2014, 266,666 stock options were exercised resulting in the issuance of 203,360 shares of common stock, which number is net of shares withheld to satisfy certain employee tax and exercise price obligations. | |
Based on the activity related to our outstanding stock options and restricted stock after June 30, 2014, the Company had 819,323 shares, including forfeited shares, available for future issuance. | |
Line of Credit. On September 17, 2014, NP entered into a senior secured $8.0 million revolving line of credit note (the "LCN") with West Texas State Bank. The LCN will mature on September 30, 2015. The LCN is subject to quarterly floating interest payments based on the Prime Rate (currently approximately 3.25%) and a floor rate of 3.25%. The LCN is secured by substantially all of NP's assets including a first lien on NP's oil and gas leases from the surface to the top of the Bakken, but excluding any rights to assets within or below the Bakken. MPC provided a guarantee of the LCN secured by a pledge of its membership interest in NP. MPC and NP are subject to certain customary restrictive covenants under the terms of this loan. |
Supplemental_Oil_and_Gas_Infor
Supplemental Oil and Gas Information (Unaudited) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||||
Supplemental Oil and Gas Information (Unaudited) | ' | |||||||||||
Note 19 - Supplemental Oil and Gas Information (Unaudited) | ||||||||||||
Supplemental Oil and Gas Reserve Information | ||||||||||||
The Company relies upon a combination of internal technical staff and third party consulting arrangements for reserve estimation and review. The reserve information presented below is based on estimates of net proved reserves as of June 30, 2014, and 2013, and was prepared in accordance with guidelines established by the SEC. | ||||||||||||
Reserve estimates were prepared by Hector Wills of MI3 Petroleum Engineering, a Golden, Colorado, based petroleum engineering firm, for the fiscal year ended June 30, 2014, and by the Company's Operations Manager, Blaine Spies, for the fiscal year ended June 30, 2013. For both periods, the reserve estimates were audited by the Company's independent petroleum engineering firm, Allen & Crouch Petroleum Engineers ("A&C"). A copy of the summary reserve audit report of A&C is provided as Exhibit 99.1 to this Annual Report on Form 10-K. A&C does not own an interest in any of Magellan's oil and gas properties and is not employed by Magellan on a contingent basis. | ||||||||||||
Proved reserves are the estimated quantities of oil, gas, and natural gas liquids, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined and the price to be used is the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. All of the Company's estimated proved reserves are located in the US. | ||||||||||||
Analysis of Changes in Proved Reserves | ||||||||||||
The following table sets forth information regarding the Company's estimated proved oil and gas reserve quantities. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. | ||||||||||||
United States | Australia (1) | Total | ||||||||||
Oil | Gas | Oil | Gas | |||||||||
(Mbbls) | (Bcf) | (Mbbls) | (Bcf) | |||||||||
Fiscal year ended June 30, 2012 | 8,905.20 | 11.5 | 8,905.20 | 11.5 | ||||||||
Revision of previous estimates | (1,215.7 | ) | 0.2 | (1,215.7 | ) | 0.2 | ||||||
Production | (320.9 | ) | (0.3 | ) | (320.9 | ) | (0.3 | ) | ||||
Fiscal year ended June 30, 2013 | 7,368.60 | 11.4 | 7,368.60 | 11.4 | ||||||||
Revision of previous estimates | (1,515.0 | ) | — | (1,515.0 | ) | — | ||||||
Sales of minerals in place | — | (11.4 | ) | — | (11.4 | ) | ||||||
Production | (117.9 | ) | — | (117.9 | ) | — | ||||||
Fiscal year ended June 30, 2014 | 5,735.70 | — | 5,735.70 | — | ||||||||
Proved Developed Reserves: | ||||||||||||
Fiscal year ended June 30, 2013 | 1,581.50 | 11.4 | 1,581.50 | 11.4 | ||||||||
Fiscal year ended June 30, 2014 | 2,494.60 | — | 2,494.60 | — | ||||||||
Proved Undeveloped Reserves: | ||||||||||||
Fiscal year ended June 30, 2013 | 5,787.10 | — | 5,787.10 | — | ||||||||
Fiscal year ended June 30, 2014 | 3,241.10 | — | 3,241.10 | — | ||||||||
(1) The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific long term supply contracts. | ||||||||||||
Revision of previous estimates. Revisions of estimates represent upward (downward) changes in previous estimates attributable to new information gained primarily from development activity, production history, and changes to the economic conditions present at the time of each estimate. During the year ended June 30, 2014, in the US, there was a 1,515 Mbbls downward revision of estimates related to the net removal from the reserves projections of seven PUD wells. During the fiscal year, we did not convert any proved undeveloped reserves to proved developed reserves. The proved undeveloped reserves as of June 30, 2013, which were related to the planned drilling of 16 wells, were originally identified and recorded in fiscal year 2010 in relation to a 20-well infill drilling program at Poplar. However, in light of the Company's increasing focus on CO2-EOR and the fact that no wells for this drilling program have been drilled to date, the Company decided to change its plans such that those locations are currently not scheduled to be drilled within five years from the date of original booking, and to remove all of the related proved undeveloped reserves from its books as of June 30, 2014. During the fiscal year ended June 30, 2014, the Company added new proved undeveloped reserves amounting to 3,241 Mbbls and attributable to a new 9-well drilling program at Poplar. The nine well locations in this program are at Poplar in the immediate vicinity of the five wells that have been recently drilled for the CO2-EOR pilot project. The Company plans to drill these wells as infill drilling locations for primary production from the Charles formation, with the additional benefit of potentially being converted for the purpose of CO2-EOR development given their location as offsets to the pilot producer wells. The proved undeveloped reserves recorded with respect to these nine wells correspond only to primary production from the Charles Formation, although if CO2-EOR has the desired impact, these wells may yield an additional tertiary component of production. During the fiscal year ended June 30, 2013, in the US, there was a 1,216 Mbbls downward revision of estimates related to the removal from the reserves projections of four PUD wells to be drilled during calendar year 2015. These wells were removed because the Company determined it would be beneficial to use only one as opposed to two drilling rigs for its PUD drilling program, and, as a result, it would not be feasible to drill these four wells within the projected time frame. | ||||||||||||
Divestitures of minerals in place. During the fiscal year ended June 30, 2014, in Australia, the Company sold its Palm Valley gas field to Central, resulting in an 11.4 Bcf adjustment and the elimination of all Australian reserves. There were no adjustments to reserves quantities relating to divestitures of minerals in place for the year ended June 30, 2013. | ||||||||||||
Standardized Measure of Oil and Gas | ||||||||||||
The Company computes a standardized measure of future net cash flows and changes therein relating to estimated proved reserves in accordance with authoritative accounting guidance. Certain information concerning the assumptions used in computing the valuation of proved reserves and their inherent limitations are discussed below. The Company believes such information is essential for a proper understanding and assessment of the data presented. | ||||||||||||
The "standardized measure" is the present value of estimated future cash inflows from proved oil and natural gas reserves, less future development and production costs and future income tax expenses, using prices and costs as of the date of estimation without future escalation, without giving effect to hedging activities, non-property related expenses such as general and administrative expenses, debt service, depreciation, depletion, and amortization, and tax, and are discounted using an annual discount rate of 10% to reflect timing of future cash flows. | ||||||||||||
The assumptions used to calculate estimated future cash inflows do not necessarily reflect the Company's expectations of actual revenues or costs, nor their present worth. In addition, variations from the expected production rate also could result directly or indirectly from factors outside of the Company's control, such as unexpected delays in development, changes in prices, or regulatory or environmental policies. The reserve valuation further assumes that all reserves will be disposed of by production. However, if reserves are sold in place, additional economic considerations could also affect the amount of cash eventually realized. | ||||||||||||
Prices. All prices used in calculation of our reserves are based upon a twelve month unweighted arithmetic average of the first day of the month price for the twelve months of the fiscal year, unless prices were defined by contractual arrangements. Prices are adjusted for local differentials and gravity and, as required by the SEC, held constant for the life of the projects (i.e., no escalation). The following table summarizes the resulting prices used for proved reserves for the fiscal years ended: | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
United States | Australia | United States | Australia | |||||||||
Oil (per Bbl) | $86.11 | NA | $82.90 | NA | ||||||||
Gas (per Mcf) | NA | NA | NA | $4.92 | ||||||||
Costs. Future development and production costs are calculated by estimating the expenditures to be incurred in developing and producing the proved oil and gas reserves at the end of the year, based on year-end costs and assuming continuation of existing economic conditions. | ||||||||||||
Income taxes. Future income tax expenses are calculated by applying the appropriate year-end statutory tax rates, with consideration of future tax rates already legislated, to the future pre-tax net cash flows relating to the Company's proved oil and gas reserves. Permanent differences in oil and gas related tax credits and allowances are recognized. | ||||||||||||
Discount. The present value of future net cash flows from the Company's proved reserves is calculated using a 10% annual discount rate. This rate is not necessarily the same as that used to calculate the current market value of our estimated oil and natural gas reserves. | ||||||||||||
The following table presents the standardized measure of discounted future net cash flows related to proved oil and gas reserves: | ||||||||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||
Future cash inflows | $ | 493,901 | $ | — | $ | 493,901 | ||||||
Future production costs | (226,464 | ) | — | (226,464 | ) | |||||||
Future development costs | (23,594 | ) | — | (23,594 | ) | |||||||
Future income tax expense | (73,820 | ) | — | (73,820 | ) | |||||||
Future net cash flows | 170,023 | — | 170,023 | |||||||||
10% annual discount | (82,980 | ) | — | (82,980 | ) | |||||||
Standardized measures of discounted future net cash flows | $ | 87,043 | $ | — | $ | 87,043 | ||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2013 | ||||||||||||
Future cash inflows | $ | 610,853 | $ | 55,947 | $ | 666,800 | ||||||
Future production costs | (244,703 | ) | (38,576 | ) | (283,279 | ) | ||||||
Future development costs | (28,922 | ) | (4,095 | ) | (33,017 | ) | ||||||
Future income tax expense | (112,193 | ) | — | (112,193 | ) | |||||||
Future net cash flows | 225,035 | 13,276 | 238,311 | |||||||||
10% annual discount | (127,644 | ) | (2,991 | ) | (130,635 | ) | ||||||
Standardized measures of discounted future net cash flows | $ | 97,391 | $ | 10,285 | $ | 107,676 | ||||||
A summary of changes in the standardized measure of discounted future net cash flows is as follows: | ||||||||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2012 | $ | 121,496 | $ | 8,579 | $ | 130,075 | ||||||
Net change in prices and production costs | (7,955 | ) | (624 | ) | (8,579 | ) | ||||||
Revisions of previous quantity estimates | (26,503 | ) | 192 | (26,311 | ) | |||||||
Changes in estimated future development costs | 3,473 | 5 | 3,478 | |||||||||
Sales and transfers of oil and gas produced | (20,178 | ) | 556 | (19,622 | ) | |||||||
Previously estimated development cost incurred during the period | 3,419 | 7 | 3,426 | |||||||||
Accretion of discount | 19,269 | 1,016 | 20,285 | |||||||||
Net change in income taxes | 22,258 | 1,577 | 23,835 | |||||||||
Net change in timing and other (1) | (17,888 | ) | (1,023 | ) | (18,911 | ) | ||||||
Fiscal year ended June 30, 2013 | 97,391 | 10,285 | 107,676 | |||||||||
Net change in prices and production costs (2) | (10,222 | ) | — | (10,222 | ) | |||||||
Revisions of previous quantity estimates (3) | (34,441 | ) | — | (34,441 | ) | |||||||
Divestiture of reserves | — | (10,285 | ) | (10,285 | ) | |||||||
Changes in estimated future development costs | 3,161 | — | 3,161 | |||||||||
Sales and transfers of oil and gas produced | (4,720 | ) | — | (4,720 | ) | |||||||
Previously estimated development cost incurred during the period | 1,723 | — | 1,723 | |||||||||
Accretion of discount | 14,632 | — | 14,632 | |||||||||
Net change in income taxes | 16,746 | — | 16,746 | |||||||||
Net change in timing and other | 2,773 | — | 2,773 | |||||||||
Fiscal year ended June 30, 2014 | $ | 87,043 | $ | — | $ | 87,043 | ||||||
(1) For fiscal year 2013, in the US, there was a $17.9 million downward revision in reserves value due to changes in timing and other. This revision primarily relates to the change, relative to the prior year reserves projections, in the expected timing of drilling and completing PUD wells and the attendant cash flow expected from these wells. During fiscal year 2013, the Company focused its activities at Poplar on executing water shut-off treatments due to their potential attractive economics. As a result, PUDs previously estimated to be drilled during fiscal year 2013 were postponed, resulting in a change in the annual quantity and timing of PUD wells to be drilled in the current reserves projections. | ||||||||||||
(2) For fiscal year 2014, in the US there was a $10.2 million downward revision in reserves value due to the net change in prices and production costs. This change was the result of increased production cost estimates that more than offset impact of the increase in the assumed price per barrel of oil between fiscal year 2013 and 2014. The Company revised its estimated future production costs upwards following a detailed bottom-up analysis of historical and projected production costs undertaken during fiscal year 2014. | ||||||||||||
(3) This revision is related to our PUDs and is discussed in greater detail above under the heading "Analysis of Changes in Proved Reserves." |
Oil_and_Gas_Activities_Unaudit
Oil and Gas Activities (Unaudited) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||||||||
Oil and Gas Activities (Unaudited) | ' | |||||||||||||||
Note 20 - Oil and Gas Activities (Unaudited) | ||||||||||||||||
Costs Incurred in Oil and Gas Producing Activities | ||||||||||||||||
Costs incurred in oil and gas property acquisition, exploration, and development activities, whether capitalized or expensed, are summarized as follows: | ||||||||||||||||
United States | Australia | United Kingdom | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||
Proved | $ | 1,729 | $ | — | $ | — | $ | 1,729 | ||||||||
Unproved | 8 | — | — | 8 | ||||||||||||
Exploration Costs | 541 | 436 | 2,507 | 3,484 | ||||||||||||
Development Costs | 21,174 | — | 551 | 21,725 | ||||||||||||
Total, including asset retirement obligation | $ | 23,452 | $ | 436 | $ | 3,058 | $ | 26,946 | ||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||
Proved | $ | 3,399 | $ | — | $ | — | $ | 3,399 | ||||||||
Unproved | 157 | — | 335 | 492 | ||||||||||||
Exploration Costs | 398 | 3,809 | 3,700 | 7,907 | ||||||||||||
Development Costs | 2,045 | — | — | 2,045 | ||||||||||||
Total, including asset retirement obligation | $ | 5,999 | $ | 3,809 | $ | 4,035 | $ | 13,843 | ||||||||
Net Changes in Capitalized Costs | ||||||||||||||||
The net changes in capitalized costs that are currently not being depleted pending the determination of proved reserves can be summarized as follows: | ||||||||||||||||
United States | Australia | United Kingdom | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||
Fiscal year beginning balance | $ | 497 | $ | 3,976 | $ | 1,762 | $ | 6,235 | ||||||||
Additions to capitalized costs (1) | 19,459 | 1,104 | 948 | 21,511 | ||||||||||||
Assets sold or held for sale | — | (5,258 | ) | — | (5,258 | ) | ||||||||||
Charged to expense | — | — | (733 | ) | (733 | ) | ||||||||||
Exchange adjustment | — | 178 | (87 | ) | 91 | |||||||||||
Fiscal year closing balance | $ | 19,956 | $ | — | $ | 1,890 | $ | 21,846 | ||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||
Fiscal year beginning balance | $ | 1,823 | $ | 4,388 | $ | 4,624 | $ | 10,835 | ||||||||
Additions to capitalized costs | 1,954 | — | 335 | 2,289 | ||||||||||||
Reclassified to producing properties | (3,223 | ) | — | — | (3,223 | ) | ||||||||||
Charged to expense | (57 | ) | — | (3,035 | ) | (3,092 | ) | |||||||||
Exchange adjustment | — | (412 | ) | (162 | ) | (574 | ) | |||||||||
Fiscal year closing balance | $ | 497 | $ | 3,976 | $ | 1,762 | $ | 6,235 | ||||||||
(1) The Company began implementing a CO2-enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014. | ||||||||||||||||
During the third quarter of fiscal year 2014, the Company allowed petroleum exploration and development licenses in the UK to expire at the end of their term. As a result, $0.7 million of exploration expense was recorded in the consolidated statement of operations. During the third quarter of fiscal year 2013, the Company allowed a petroleum exploration and development license in the UK to expire at the end of its term. As a result, an impairment of $0.9 million was recorded in the consolidated statements of operations. Additionally, the Company recorded a write-down related to the Markwells Wood-1 exploration well in the UK operated by Northern Petroleum. As a result, an exploration expense of $2.2 million was recorded in the consolidated statements of operations. No further write-downs were recorded during the fiscal year ended June 30, 2014. | ||||||||||||||||
At June 30, 2014, the Company had no costs capitalized for exploratory wells in progress for a period of greater than one year after the completion of drilling. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||||
Note 21 - Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
The following table summarizes the unaudited quarterly financial data, including continuing (loss) income before income taxes, net (loss) income, and net (loss) income per common share for the fiscal years ended: | ||||||||||||||||||||
First | Second | Third | Fourth | June 30, | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2014 | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||||||
Revenue from oil production | $ | 2,134 | $ | 1,632 | $ | 1,907 | $ | 1,928 | $ | 7,601 | ||||||||||
Total operating expenses | $ | 6,591 | $ | 5,047 | $ | 4,311 | $ | 4,000 | $ | 19,949 | ||||||||||
Continuing operations: | ||||||||||||||||||||
(Loss) income from continuing operations (1) | $ | (4,497 | ) | $ | (3,437 | ) | $ | (2,813 | ) | $ | 705 | $ | (10,042 | ) | ||||||
Net (loss) income per basic common share outstanding | ($0.11) | ($0.09) | ($0.07) | $0.01 | ($0.26) | |||||||||||||||
Net (loss) income per diluted common share outstanding | ($0.11) | ($0.09) | ($0.07) | $0.01 | ($0.26) | |||||||||||||||
Attributable to common stockholders: | ||||||||||||||||||||
Net (loss) income | $ | (5,250 | ) | $ | (4,533 | ) | $ | 24,089 | $ | (493 | ) | $ | 13,813 | |||||||
Net (loss) income per basic common share outstanding | ($0.12) | ($0.10) | $0.53 | ($0.01) | $0.30 | |||||||||||||||
Net (loss) income per diluted common share outstanding | ($0.12) | ($0.10) | $0.53 | ($0.01) | $0.30 | |||||||||||||||
(1) A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. | ||||||||||||||||||||
First | Second | Third | Fourth | June 30, 2013 | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||||||
Revenue from oil production | $ | 1,460 | $ | 1,442 | $ | 1,706 | $ | 1,523 | $ | 6,131 | ||||||||||
Total operating expenses | $ | 6,101 | $ | 7,319 | $ | 6,515 | $ | 4,479 | $ | 24,414 | ||||||||||
Continuing operations: | ||||||||||||||||||||
Loss from continuing operations | $ | (4,405 | ) | $ | (5,746 | ) | $ | (3,726 | ) | $ | (2,952 | ) | $ | (16,829 | ) | |||||
Net loss per basic common share outstanding | ($0.08) | ($0.11) | ($0.08) | ($0.08) | ($0.35) | |||||||||||||||
Net loss per diluted common share outstanding | ($0.08) | ($0.11) | ($0.08) | ($0.08) | ($0.35) | |||||||||||||||
Attributable to common stockholders: | ||||||||||||||||||||
Net loss | $ | (5,310 | ) | $ | (9,783 | ) | $ | (4,332 | ) | $ | (1,064 | ) | $ | (20,489 | ) | |||||
Net loss per basic common share outstanding | ($0.10) | ($0.18) | ($0.09) | ($0.04) | ($0.41) | |||||||||||||||
Net loss per diluted common share outstanding | ($0.10) | ($0.18) | ($0.09) | ($0.04) | ($0.41) | |||||||||||||||
During the third quarter of fiscal year 2014, pursuant to the Sale Deed, the Company completed the sale of Palm Valley and Dingo to Central PV (see Note 2). The transaction resulted in a gain on disposal of discontinued operations, net of tax in the amount of $30.0 million. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements include the accounts of Magellan and its wholly owned subsidiaries, NP, MPUK and MPA, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and the instructions to Form 10-K and Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). All intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the prior year net income, accumulated deficit, net assets, or total shareholders' equity. The Company has evaluated events or transactions through the date of issuance of this report in conjunction with the preparation of these consolidated financial statements. All amounts presented are in US dollars, unless otherwise noted. Amounts expressed in Australian currency are indicated as "AUD." | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of 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 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 currency of our foreign subsidiaries is their local currency. Assets and liabilities of foreign subsidiaries are translated to US dollars at period-end exchange rates, and our consolidated statements of operations and cash flows are translated at average exchange rates during the reporting periods. Resulting translation adjustments are recorded in accumulated other comprehensive income, a separate component of stockholders' equity. A component of accumulated other comprehensive income will be released into income when the Company executes a partial or complete sale of an investment in a foreign subsidiary or a group of assets of a foreign subsidiary considered a business and/or when the Company no longer holds a controlling financial interest in a foreign subsidiary or group of assets of a foreign subsidiary considered a business. | |
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. 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 consolidated statements of operations. | |
Cash and Cash Equivalents | ' |
The Company considers all highly liquid short term investments with original maturities of three months or less at the date of acquisition to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short term nature of these instruments. | |
Concentration of Credit Risk | ' |
The Company's financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held in several UK and Australian bank accounts and time deposit accounts that have terms of 90 days or less. The Company regularly assesses the level of credit risk we are exposed to and whether there are better ways of managing credit risk. The Company invests its cash and cash equivalents with reputable financial institutions. At times, balances deposited may exceed FDIC insured limits. The Company has not incurred any losses related to these deposits. | |
Securities Available for Sale | ' |
Securities Available-for-Sale | |
Securities available-for-sale are comprised of investments in publicly traded securities and are carried at quoted market prices. Unrealized gains and losses are excluded from earnings and recorded as a component of accumulated other comprehensive income in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. As a result of this review, no impairment was recorded for the years ended June 30, 2014, or 2013, respectively. | |
Accounts Receivable | ' |
Accounts Receivable | |
Trade accounts receivable consist mainly of receivables from oil and gas purchasers. For receivables from working interest partners, the Company typically has the ability to withhold future revenue disbursements to recover non-payment of joint interest billings. Generally, oil and gas receivables are collected within two months. The collectability of accounts receivable is continuously monitored and analyzed based upon historical experience. The use of judgment is required to establish a provision for allowance for doubtful accounts for specific customer collection issues identified. | |
Inventories | ' |
Inventories | |
Our inventories consist of oil and gas drilling or repair items such as tubing, casing, chemicals, operating supplies, ordinary maintenance materials, and parts and production equipment for use in future drilling operations or repair operations. All inventories are carried at the lower of cost or net realizable value. | |
Oil and Gas Exploration and Production Activities | ' |
Oil and Gas Exploration and Production Activities | |
The Company follows the successful efforts method of accounting for its oil and gas exploration and production activities. Under this method, all property acquisition costs, and costs of exploratory and development wells are capitalized until a determination is made that the well has found proved reserves or is deemed noncommercial. If an exploratory well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs, geological and geophysical expenses. Noncommercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred. | |
Depreciation, depletion, and amortization ("DD&A") of capitalized costs related to proved oil and gas properties is calculated on a property-by-property basis using the units-of-production method based upon proved reserves. The computation of DD&A takes into consideration restoration, dismantlement, and abandonment costs as well as the anticipated proceeds from salvaging equipment. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses. | |
The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement, and no gain or loss is recognized as long as the treatment does not significantly affect the units-of-production depletion rate. A gain or loss is recognized for all other sales of producing properties and is included in the accompanying consolidated statements of operations. | |
The Company reviews its proved oil and gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future cash flows of its oil and gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to fair value. The factors used to determine fair value include, but are not limited to, recent sales prices of comparable properties, the present value of estimated future cash flows, net of estimated operating and development costs, using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected. | |
Land, Buildings, and Equipment | ' |
Land, Buildings, and Equipment | |
Land, buildings, and equipment are recorded at cost. Costs of renewals and improvements that substantially extend the useful lives of the assets are capitalized. Maintenance and repair costs are expensed when incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to fifteen years. | |
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. | |
As of June 30, 2014 and 2013, management concluded that there is no impairment of goodwill. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
The Company recognizes an estimated liability for future costs associated with the plugging and abandonment of its oil and gas properties. A liability for the fair value of an asset retirement obligation and corresponding increase in the carrying value of the related long-lived asset are recorded at the time a well is acquired or the liability to plug is legally incurred. The increase in carrying value is included in proved oil and gas properties in the accompanying consolidated balance sheets. The Company depletes the amount added to proved oil and gas property costs, net of estimated salvage values, and recognizes expense in connection with the accretion of the discounted liability over the remaining estimated economic lives of the respective oil and gas properties (see Note 6). | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company derives revenue primarily from the sale of produced oil. Oil revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability of the revenue is probable. Transportation costs are included in production costs. | |
Major Customers | ' |
Major Customers | |
The Company's consolidated oil production revenue is derived from its NP segment and is generated from a single customer for the years ended June 30, 2014, and 2013, respectively. | |
Share Based Compensation | ' |
Stock Based Compensation | |
Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options are expensed on a straight-line basis over the vesting period. Market based options are expensed based on a graded amortization method, the expense is recognized if the derived service period is satisfied, even if the market condition is not achieved. Performance based options ("PBOs") are recognized when the achievement of the performance conditions is considered probable. Accordingly, PBOs are expensed 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. | |
The fair value of the stock options is determined on the grant date and is affected by our stock price and other assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the term of the awards, risk free interest rates, expected dividends, and the expected option exercise term. The Company estimates the fair value of PBOs and time based stock options using the Black-Scholes-Merton pricing model. The simplified method is used to estimate the expected term of stock options due to a lack of related historical data regarding exercise, cancellation, and forfeiture. For market based stock options, the fair value is estimated using Monte Carlo simulation techniques. | |
Accounting for Income Taxes | ' |
Accounting for Income Taxes | |
The Company follows the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance for deferred tax assets when it is more likely than not that such assets will not be recovered. | |
GAAP prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements uncertain tax positions that the Company has taken or expects to take in its tax returns. Under GAAP, the Company recognizes tax positions when it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company has presumed that its positions will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The next step consists of measurement. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. A tax position is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. An uncertain income tax position will not be recognized if it does not meet the more-likely-than-not threshold. To appropriately account for income tax matters, the Company is required to make significant judgments and estimates regarding the recoverability of deferred tax assets, the likelihood of the outcome of examinations of tax positions that may or may not be currently under review, and potential scenarios involving settlements of such matters. Changes in these estimates could materially impact the consolidated financial statements. There are no uncertain tax positions that would meet the more-likely-than-not recognition threshold for the fiscal years ended June 30, 2014, or 2013, respectively. | |
The Company has adopted an accounting policy to record all tax related interest under interest expense and tax related penalties under general and administrative expense in the consolidated statement of operations. | |
Financial Instruments | ' |
Financial Instruments | |
The carrying value for cash and cash equivalents, accounts receivable, accounts payable, and debt approximates fair value based on the timing of the anticipated cash flows and current market conditions. | |
Segment Information | ' |
Segment Information | |
As of June 30, 2014, the Company determined, based on the criteria of Financial Accounting Standards Board (the "FASB") ASC Topic 280, it operates in three segments, NP, MPUK and MPA, as well as a head office, Magellan ("Corporate"), which is treated as a cost center. As of June 30, 2014, these three operating segments met the minimum quantitative threshold to qualify for separate segment reporting. | |
The Company's chief operating decision maker is J. Thomas Wilson (President and CEO of the Company), who reviews the results and manages operations of the Company in the three reporting segments of NP, MPUK, MPA, and Corporate. The presentation of all segment information herein reflects the manner in which the Company's management monitors performance and allocates resources. For information pertaining to our reporting segments, see Note 13. | |
(Loss) Earnings Per Common Share | ' |
Earnings (Loss) per Common Share | |
Income and losses per common share are based upon the weighted average number of common and common equivalent shares outstanding during the period. The effect of potential dilutive securities in the determinations of diluted earnings per share are the dilutive effect of stock options, non-vested restricted stock, and the shares of Series A convertible preferred stock. The potential dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potential dilutive impact of the shares of Series A convertible preferred stock is determined using the "if-converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing dilutive shares if the effect would be antidilutive. The preferred stock is convertible at a rate of one common share to one preferred share. We did not include any stock options or common stock issuable upon the conversion of the Series A convertible preferred stock in the calculation of diluted earnings (loss) per share during the fiscal year ended June 30, 2014, and 2013, respectively, as they would be antidilutive. | |
Accumulated Other Comprehensive (Loss) Income | ' |
Accumulated Other Comprehensive Income (Loss) | |
Comprehensive income (loss) is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net income (loss). | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective July 1, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | |
In March 2013, the FASB issued ASU No. 2013-05, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of a foreign subsidiary or foreign group of assets comprising a business. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2018; early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. | |
There are no new significant accounting standards applicable to the Company that have been issued but not yet adopted by the Company as of June 30, 2014. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Goodwill Roll-Forward | ' | |||||||
Changes in goodwill can be summarized as follows for the years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Fiscal year opening balance | $ | 2,174 | $ | 2,174 | ||||
Sale of Amadeus Basin assets (see Note 3) | (1,000 | ) | — | |||||
Fiscal year closing balance | $ | 1,174 | $ | 2,174 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | ' | |||||||
Summarized results of the Company's discontinued operations are as follows: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue | $ | 814 | $ | 939 | ||||
Loss from discontinued operations, net of tax | $ | (4,461 | ) | $ | (2,938 | ) | ||
As of June 30, 2014, the gain on disposal of discontinued operations can be summarized as follows: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Assets and liabilities sold: | ||||||||
Property and equipment, net | $ | (10,100 | ) | $ | (9,627 | ) | ||
Deferred income taxes | (7,217 | ) | (7,217 | ) | ||||
Goodwill allocated to the disposal group | (1,000 | ) | (1,000 | ) | ||||
Asset retirement obligations | 4,457 | 4,575 | ||||||
Purchase price adjustments | 743 | — | ||||||
Total assets and liabilities of discontinued operations | (13,117 | ) | (13,269 | ) | ||||
Consideration: | ||||||||
First cash installment - received on Central Closing Date | 13,859 | |||||||
Second cash installment - received on April 15, 2014 | 4,695 | |||||||
Stock of Central | 19,147 | |||||||
Total consideration | 37,701 | |||||||
Reclassification of foreign currency translation gains to earnings upon sale of foreign subsidiary | 5,767 | |||||||
Transaction costs | (339 | ) | ||||||
Gain on disposal of discontinued operations, net of tax | $ | 30,012 | ||||||
Securities_AvailableforSale_Ta
Securities Available-for-Sale (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Schedule of Available-for-sale Securities | ' | |||||||||||||||
The following table presents the amortized cost, gross unrealized gains, gross unrealized losses and fair market value of available-for-sale equity securities as follows: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Amortized | Gross unrealized gains | Gross unrealized losses | Fair | |||||||||||||
cost | value | |||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | $ | 19,339 | $ | — | $ | (7,404 | ) | $ | 11,935 | |||||||
June 30, 2013 | ||||||||||||||||
Amortized | Gross unrealized gains | Gross unrealized losses | Fair | |||||||||||||
cost | value | |||||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | $ | 192 | $ | — | $ | (148 | ) | $ | 44 | |||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
Asset Retirement Obligations Roll-Forward | ' | |||||||
The following table summarizes the asset retirement obligation activity for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Fiscal year opening balance | $ | 6,879 | $ | 7,784 | ||||
Liabilities assumed | 7 | 3 | ||||||
Accretion expense | 367 | 433 | ||||||
Sale of assets (1) | (4,457 | ) | — | |||||
Revision to estimate (2) | — | (758 | ) | |||||
Effect of exchange rate changes | 77 | (583 | ) | |||||
Fiscal year closing balance | 2,873 | 6,879 | ||||||
Less current asset retirement obligations | 397 | 476 | ||||||
Long term asset retirement obligations | $ | 2,476 | $ | 6,403 | ||||
(1) Related to the sale of the Amadeus Basin assets | ||||||||
(2) The revision primarily resulted from a change in the expected timing of estimated abandonment cost for our oil and gas properties. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows: | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Securities available-for-sale | $ | 11,935 | $ | — | $ | — | $ | 11,935 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 1,852 | $ | 1,852 | ||||||||
June 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Securities available-for-sale | $ | 44 | $ | — | $ | — | $ | 44 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration payable | $ | — | $ | — | $ | 3,940 | $ | 3,940 | ||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||
The following table presents information about significant unobservable inputs to the contingent consideration payable measured at fair value on a recurring basis for the fiscal years ended: | ||||||||||||||||
June 30, | ||||||||||||||||
Description | Valuation technique | Significant unobservable inputs | 2014 | 2013 | ||||||||||||
Contingent consideration payable | Discounted cash flow model | Discount rate | 8.00% | 8.00% | ||||||||||||
First production payout | 30-Jun-15 | 31-Dec-15 | ||||||||||||||
Second production payout | NA | 31-Dec-16 | ||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | |||||||||||||||
The following table presents a roll forward of the contingent consideration payable for the fiscal years ended: | ||||||||||||||||
June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year beginning balance | $ | 3,940 | $ | 4,072 | ||||||||||||
Accretion expense | 315 | 326 | ||||||||||||||
Revision to estimate | (2,403 | ) | (458 | ) | ||||||||||||
Fiscal year closing balance | $ | 1,852 | $ | 3,940 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | |||||||
The domestic and foreign components of our income (loss) from continuing operations are as follows for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
United States | $ | 4,262 | $ | (9,449 | ) | |||
Australia | (11,563 | ) | (3,333 | ) | ||||
United Kingdom | (2,741 | ) | (4,047 | ) | ||||
Loss from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||
The following reconciles the Company's effective tax rate to the federal statutory tax rate for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Tax provision computed per federal statutory rate | $ | (3,013 | ) | $ | (5,048 | ) | ||
State taxes, net of federal benefit | 549 | (40 | ) | |||||
Foreign rate differential | 417 | (60 | ) | |||||
Non taxable Australian revenue | (3,144 | ) | 288 | |||||
Goodwill write off | (58 | ) | — | |||||
Decreases related to lapse of applicable statute of limitations | — | 685 | ||||||
Change in valuation allowance | 3,476 | 999 | ||||||
Taxable dividends from subsidiaries, net of foreign tax credits | 3,586 | (1,053 | ) | |||||
Foreign tax credit adjustment | (761 | ) | 787 | |||||
Capital loss adjustment | 73 | 309 | ||||||
Impact of rate change | 291 | 140 | ||||||
Foreign currency translation differential | (434 | ) | 2,912 | |||||
Contingent consideration payable write off | (710 | ) | (45 | ) | ||||
Other items | (272 | ) | 126 | |||||
Consolidated income tax expense (benefit) | $ | — | $ | — | ||||
Schedule of Components of Income Tax Provision | ' | |||||||
The following summarizes components of our income tax provision for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Consolidated current income tax provision | — | — | ||||||
Consolidated deferred income tax provision | — | — | ||||||
Consolidated income tax provision | $ | — | $ | — | ||||
The consolidated income tax provision is summarized as follows: | ||||||||
Continuing operations | $ | — | $ | — | ||||
Discontinued operations | $ | 7,217 | $ | (1,267 | ) | |||
Effective tax rate for continuing operations | — | % | — | % | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
Significant components of the Company's deferred tax assets and liabilities can be summarized as follows for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Deferred tax liabilities: | ||||||||
Land, buildings and equipment | $ | (4,030 | ) | $ | (2,946 | ) | ||
Other items | (157 | ) | (124 | ) | ||||
Total deferred tax liabilities | (4,187 | ) | (3,070 | ) | ||||
Deferred tax assets: | ||||||||
Asset retirement obligations | 923 | 817 | ||||||
Net operating losses, capital losses, and foreign tax credit carry forwards | 13,891 | 10,342 | ||||||
United Kingdom exploration costs and net operating losses | 3,851 | 3,555 | ||||||
Investments | 2,378 | 32 | ||||||
Stock option compensation | 2,839 | 1,971 | ||||||
Australian capitalized legal costs | 143 | 258 | ||||||
Other items | 141 | 219 | ||||||
Total deferred tax asset | 24,166 | 17,194 | ||||||
Valuation allowance | (19,979 | ) | (14,124 | ) | ||||
Net long term deferred tax asset | $ | — | $ | — | ||||
Summary of Jurisdictions Subject to Income Tax Examination | ' | |||||||
As of June 30, 2014, the Company remains subject to examination in the following major tax jurisdictions for the tax years indicated below: | ||||||||
Jurisdiction | Tax Years Subject | |||||||
to Examination: | ||||||||
US Federal | 2011 - 2013 | |||||||
Colorado | 2011 - 2013 | |||||||
Connecticut | 2010 | |||||||
Maine | 2011 - 2013 | |||||||
Montana | 2010 - 2013 | |||||||
Australia | 2010 - 2013 | |||||||
United Kingdom | 2010 - 2013 | |||||||
Summary of Operating Loss and Tax Credit Carryforwards | ' | |||||||
At June 30, 2014, the Company had net operating loss and foreign tax credit carry forwards for US Federal and State Income Tax purposes, respectively, which are scheduled to expire periodically as follows: | ||||||||
State Net Operating Losses | Federal Foreign Tax Credit | |||||||
(In thousands) | ||||||||
Expires: | ||||||||
2017 | $ | 7 | $ | 310 | ||||
2018 | — | — | ||||||
2019 | — | 1,411 | ||||||
2020 | 399 | 624 | ||||||
2021 | 176 | 1,443 | ||||||
2022 | — | 3,655 | ||||||
2023 and thereafter | — | 2,716 | ||||||
Total | $ | 582 | $ | 10,159 | ||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||
The following table summarizes the stock option activity for the fiscal years ended: | |||||||||||||||||||
June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Number of | WAEPS (1) | Number of | WAEPS (1) | ||||||||||||||||
Shares | Shares | ||||||||||||||||||
Fiscal year beginning balance | 7,888,957 | $1.34 | 6,753,125 | $1.44 | |||||||||||||||
Granted | 3,000,000 | $1.03 | 1,627,500 | $1.23 | |||||||||||||||
Exercised | (275,000 | ) | $1.07 | — | $0.00 | ||||||||||||||
Forfeited (2) | (121,666 | ) | $1.03 | (491,668 | ) | $1.23 | |||||||||||||
Options outstanding at end of fiscal year | 10,492,291 | $1.26 | 7,888,957 | $1.34 | |||||||||||||||
Weighted average remaining contractual term of outstanding options | 6.0 years | 5.9 years | |||||||||||||||||
(1) Weighted average exercise price per share. | |||||||||||||||||||
(2) Fiscal year 2013 includes the effect of 100,000 historically granted stock options forfeited erroneously. | |||||||||||||||||||
Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | ||||||||||||||||||
The following table summarizes options outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||||
Range of | Number | Weighted average remaining contractual life | WAEPS (1) | Number | Weighted average remaining contractual life | WAEPS (1) | |||||||||||||
exercise | of | of | |||||||||||||||||
prices | shares | shares | |||||||||||||||||
$0.79 | - | $1.04 | 3,057,500 | 9.2 years | $1.02 | 827,500 | 9.1 years | $1.02 | |||||||||||
$1.05 | - | $1.11 | 1,415,000 | 8.0 years | $1.08 | 1,004,998 | 7.6 years | $1.09 | |||||||||||
$1.12 | - | $1.18 | 1,191,666 | 7.7 years | $1.13 | 624,999 | 7.2 years | $1.13 | |||||||||||
$1.19 | - | $1.40 | 3,100,000 | 1.9 years | $1.20 | 3,100,000 | 1.9 years | $1.20 | |||||||||||
$1.41 | - | $2.41 | 1,728,125 | 5.0 years | $2.03 | 1,728,125 | 5.0 years | $2.03 | |||||||||||
10,492,291 | 6.0 years | $1.26 | 7,285,622 | 4.7 years | $1.36 | ||||||||||||||
Aggregate intrinsic value | $ | 9,857,615 | $ | 6,152,424 | |||||||||||||||
(1) Weighted average exercise price per share. | |||||||||||||||||||
Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions | ' | ||||||||||||||||||
The fair value of shares issued under the 2012 Stock Incentive Plan were estimated using the following weighted-average assumptions for the fiscal years ended: | |||||||||||||||||||
June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
PBOs (1) | Market Based (2) | Time based | |||||||||||||||||
and PBOs | |||||||||||||||||||
Number of options | 1,500,000 | 1,500,000 | 1,627,500 | ||||||||||||||||
Weighted-average grant date fair value per share | $0.57 | $0.69 | $0.61 | ||||||||||||||||
Expected dividend | $0.00 | $0.00 | $0.00 | ||||||||||||||||
Forfeiture rate | 0 | 0 | 0 | ||||||||||||||||
Risk free interest rate | 1.5 | % | - | 1.70% | 2.80% | 0.6 | % | - | 1.30% | ||||||||||
Expected life (years) | 0.4 | - | 1.6 | 2.6 | 5.1 | - | 6 | ||||||||||||
Expected volatility (based on historical price) | 61.7 | % | - | 61.90% | 66.60% | 60.3 | % | - | 63.50% | ||||||||||
(1) The terms related to these PBOs were estimated using an average probabilistic weighted method. | |||||||||||||||||||
(2) The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term. |
Preferred_Stock_Preferred_Stoc
Preferred Stock Preferred Stock (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
Schedule of Preferred Stock Activity | ' | |||||||||||||
The following table summarizes the Series A Preferred Stock activity for the fiscal years ended: | ||||||||||||||
June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of shares issued | Amount | Number of shares issued | Amount | |||||||||||
(In thousands, except share amounts) | ||||||||||||||
Fiscal year opening balance | 19,239,734 | $ | 23,502 | — | $ | — | ||||||||
Issuance of Series A Preferred Stock | — | — | 19,239,734 | 23,502 | ||||||||||
PIK dividend shares issued, for previously accrued dividend | 164,607 | 202 | — | — | ||||||||||
Current year PIK dividends shares issued | 685,095 | 835 | — | — | ||||||||||
Fiscal year closing balance | 20,089,436 | $ | 24,539 | 19,239,734 | $ | 23,502 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Equity [Abstract] | ' | |||||||||||||
Schedule of Treasury Stock by Class | ' | |||||||||||||
The following table summarizes the Company's treasury stock activity for the fiscal years ended: | ||||||||||||||
June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Number of shares issued | Amount | Number of shares issued | Amount | |||||||||||
(In thousands, except share amounts) | ||||||||||||||
Fiscal year opening balance | 9,414,176 | $ | 9,333 | — | $ | — | ||||||||
Repurchases through the stock repurchase program | — | — | 149,539 | 137 | ||||||||||
Repurchase through the Collateral Agreement (1) | — | — | 9,264,637 | 9,196 | ||||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock | 10,938 | 11 | — | — | ||||||||||
Fiscal year closing balance | 9,425,114 | $ | 9,344 | 9,414,176 | $ | 9,333 | ||||||||
(1) Purchase price of $10.0 million reduced by the fair value of the warrant. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of (Loss) Earnings Per Share, Basic and Diluted | ' | |||||||
The following table summarizes the computation of basic and diluted earnings (loss) per share for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands, except share and per share amounts) | ||||||||
Loss from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
Preferred stock dividend | (1,696 | ) | (722 | ) | ||||
Net loss from continuing operations, net of dividends attributable to preferred stock | (11,738 | ) | (17,551 | ) | ||||
Net income (loss) from discontinued operations | 25,551 | (2,938 | ) | |||||
Net income (loss) attributable to common stockholders | $ | 13,813 | $ | (20,489 | ) | |||
Basic weighted-average shares outstanding | 45,348,840 | 49,642,083 | ||||||
Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) | — | — | ||||||
Diluted weighted-average common shares outstanding | 45,348,840 | 49,642,083 | ||||||
Basic net (loss) earnings per common share: | ||||||||
Net loss from continuing operations, net of dividends attributable to preferred stock (2) | ($0.26) | ($0.35) | ||||||
Net income (loss) from discontinued operations | $0.56 | ($0.06) | ||||||
Net income (loss) attributable to common stockholders | $0.30 | ($0.41) | ||||||
Diluted net (loss) earnings per common share | ||||||||
Net loss from continuing operations, net of dividends attributable to preferred stock (2) | ($0.26) | ($0.35) | ||||||
Net income (loss) from discontinued operations | $0.56 | ($0.06) | ||||||
Net income (loss) attributable to common stockholders | $0.30 | ($0.41) | ||||||
(1) All diluted earnings per share calculations are dictated by the results from continuing operations, accordingly there was no dilutive effect on earnings per share in the periods presented. | ||||||||
(2) Loss from continuing operations is reduced by the contractual amount of Preferred stock dividends that must be expensed for the current period. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||
The following table presents segment information for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue from NP oil production | $ | 7,601 | $ | 6,131 | ||||
Net income (loss) from continuing operations: | ||||||||
NP (1) | $ | 1,828 | $ | (326 | ) | |||
MPA | (934 | ) | (3,555 | ) | ||||
MPUK | (2,585 | ) | (4,726 | ) | ||||
Corporate | (8,351 | ) | (8,222 | ) | ||||
Consolidated net losses from continuing operations | $ | (10,042 | ) | $ | (16,829 | ) | ||
Assets: | ||||||||
NP | $ | 27,299 | $ | 26,093 | ||||
MPA | 14,073 | 32,735 | ||||||
MPUK (2) | 4,486 | 2,021 | ||||||
Corporate | 111,113 | 96,229 | ||||||
Inter-segment eliminations (3) | (75,536 | ) | (74,806 | ) | ||||
Consolidated assets | $ | 81,435 | $ | 82,272 | ||||
Expenditures for additions to long lived assets: | ||||||||
NP | $ | 20,334 | $ | 2,124 | ||||
MPUK | 526 | 350 | ||||||
Corporate | 63 | 258 | ||||||
Consolidated expenditures for long lived assets | $ | 20,923 | $ | 2,732 | ||||
(1) The downward revision of the contingent consideration payable resulted in $2.1 million of other income associated with our NP segment, refer Note 7. | ||||||||
(2) Refer Note 20 for disclosures relating to non-cash charges to capitalized costs. | ||||||||
(3) Asset inter-segment eliminations are primarily derived from investments in subsidiaries. | ||||||||
The following table summarizes other significant items for the fiscal years ended: | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Depletion, depreciation, amortization, and accretion: | ||||||||
NP | $ | 977 | $ | 988 | ||||
Corporate | 146 | 133 | ||||||
Consolidated depletion, depreciation, amortization, and accretion | $ | 1,123 | $ | 1,121 | ||||
Lease operating: | ||||||||
NP | $ | 6,257 | $ | 4,851 | ||||
Exploration: | ||||||||
NP | $ | 541 | $ | 398 | ||||
MPA | 436 | 3,809 | ||||||
MPUK | 2,507 | 3,700 | ||||||
Consolidated exploration | $ | 3,484 | $ | 7,907 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Commitments Under Non-Cancelable Operating Leases | ' | |||
The following table summarizes the Company's future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, as of June 30, 2014: | ||||
Total | ||||
(In thousands) | ||||
Amounts payable in fiscal year: | ||||
2015 | $ | 262 | ||
2016 | 268 | |||
2017 | 273 | |||
2018 | 90 | |||
Total | $ | 893 | ||
Employee_Severance_Costs_Table
Employee Severance Costs (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of Restructuring and Related Costs | ' | |||||||||||
A reconciliation of the beginning and ending liability balance for charges to the consolidated statements of operations and cash payments is as follows for the fiscal years ended: | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Severance - Discontinued Operations | Severance - Termination Benefits | Severance - Termination Benefits | ||||||||||
(In thousands) | ||||||||||||
Fiscal year beginning balance | $ | — | $ | 418 | $ | — | ||||||
Charges to general and administrative expense | — | — | 837 | |||||||||
Charges to loss from discontinued operations, net of tax | 1,210 | — | — | |||||||||
Cash payments | (1,210 | ) | (418 | ) | (419 | ) | ||||||
Fiscal year closing balance | $ | — | $ | — | $ | 418 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The following table represents the changes in components of accumulated other comprehensive income (loss), net of tax, for the fiscal year ended: | ||||||||||||
June 30, 2014 | ||||||||||||
Foreign currency translation | Unrealized investment holding loss | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year opening balance | $ | 10,674 | $ | (148 | ) | $ | 10,526 | |||||
Changes in comprehensive income (loss): | ||||||||||||
Other comprehensive income (loss) before reclassification | 488 | (7,256 | ) | (6,768 | ) | |||||||
Amounts reclassified from other comprehensive loss (1) | (5,767 | ) | — | (5,767 | ) | |||||||
Net current period other comprehensive loss | (5,279 | ) | (7,256 | ) | (12,535 | ) | ||||||
Fiscal year ended June 30, 2014 | $ | 5,395 | $ | (7,404 | ) | $ | (2,009 | ) | ||||
(1) Reclassification of foreign currency translation gain to earnings upon the sale or substantially complete liquidation of an investment in a foreign entity. The reclassified gain is reported in the consolidated statement of operations under gain on disposal of discontinued operations, net of tax. |
Supplemental_Oil_and_Gas_Infor1
Supplemental Oil and Gas Information (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||||
Analysis of Changes in Proved Reserves | ' | |||||||||||
The following table sets forth information regarding the Company's estimated proved oil and gas reserve quantities. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. | ||||||||||||
United States | Australia (1) | Total | ||||||||||
Oil | Gas | Oil | Gas | |||||||||
(Mbbls) | (Bcf) | (Mbbls) | (Bcf) | |||||||||
Fiscal year ended June 30, 2012 | 8,905.20 | 11.5 | 8,905.20 | 11.5 | ||||||||
Revision of previous estimates | (1,215.7 | ) | 0.2 | (1,215.7 | ) | 0.2 | ||||||
Production | (320.9 | ) | (0.3 | ) | (320.9 | ) | (0.3 | ) | ||||
Fiscal year ended June 30, 2013 | 7,368.60 | 11.4 | 7,368.60 | 11.4 | ||||||||
Revision of previous estimates | (1,515.0 | ) | — | (1,515.0 | ) | — | ||||||
Sales of minerals in place | — | (11.4 | ) | — | (11.4 | ) | ||||||
Production | (117.9 | ) | — | (117.9 | ) | — | ||||||
Fiscal year ended June 30, 2014 | 5,735.70 | — | 5,735.70 | — | ||||||||
Proved Developed Reserves: | ||||||||||||
Fiscal year ended June 30, 2013 | 1,581.50 | 11.4 | 1,581.50 | 11.4 | ||||||||
Fiscal year ended June 30, 2014 | 2,494.60 | — | 2,494.60 | — | ||||||||
Proved Undeveloped Reserves: | ||||||||||||
Fiscal year ended June 30, 2013 | 5,787.10 | — | 5,787.10 | — | ||||||||
Fiscal year ended June 30, 2014 | 3,241.10 | — | 3,241.10 | — | ||||||||
(1) The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific long term supply contracts. | ||||||||||||
Standardized Measure of Oil and Gas - Prices | ' | |||||||||||
The following table summarizes the resulting prices used for proved reserves for the fiscal years ended: | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
United States | Australia | United States | Australia | |||||||||
Oil (per Bbl) | $86.11 | NA | $82.90 | NA | ||||||||
Gas (per Mcf) | NA | NA | NA | $4.92 | ||||||||
Standardized Measure of Oil and Gas - Discounted Future Cash Flows Relating to Proved Reserves Disclosure | ' | |||||||||||
The following table presents the standardized measure of discounted future net cash flows related to proved oil and gas reserves: | ||||||||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||
Future cash inflows | $ | 493,901 | $ | — | $ | 493,901 | ||||||
Future production costs | (226,464 | ) | — | (226,464 | ) | |||||||
Future development costs | (23,594 | ) | — | (23,594 | ) | |||||||
Future income tax expense | (73,820 | ) | — | (73,820 | ) | |||||||
Future net cash flows | 170,023 | — | 170,023 | |||||||||
10% annual discount | (82,980 | ) | — | (82,980 | ) | |||||||
Standardized measures of discounted future net cash flows | $ | 87,043 | $ | — | $ | 87,043 | ||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2013 | ||||||||||||
Future cash inflows | $ | 610,853 | $ | 55,947 | $ | 666,800 | ||||||
Future production costs | (244,703 | ) | (38,576 | ) | (283,279 | ) | ||||||
Future development costs | (28,922 | ) | (4,095 | ) | (33,017 | ) | ||||||
Future income tax expense | (112,193 | ) | — | (112,193 | ) | |||||||
Future net cash flows | 225,035 | 13,276 | 238,311 | |||||||||
10% annual discount | (127,644 | ) | (2,991 | ) | (130,635 | ) | ||||||
Standardized measures of discounted future net cash flows | $ | 97,391 | $ | 10,285 | $ | 107,676 | ||||||
Standardized Measure of Oil and Gas - Changes in Standardized Measure of Discounted Future Net Cash Flows | ' | |||||||||||
A summary of changes in the standardized measure of discounted future net cash flows is as follows: | ||||||||||||
United States | Australia | Total | ||||||||||
(In thousands) | ||||||||||||
Fiscal year ended June 30, 2012 | $ | 121,496 | $ | 8,579 | $ | 130,075 | ||||||
Net change in prices and production costs | (7,955 | ) | (624 | ) | (8,579 | ) | ||||||
Revisions of previous quantity estimates | (26,503 | ) | 192 | (26,311 | ) | |||||||
Changes in estimated future development costs | 3,473 | 5 | 3,478 | |||||||||
Sales and transfers of oil and gas produced | (20,178 | ) | 556 | (19,622 | ) | |||||||
Previously estimated development cost incurred during the period | 3,419 | 7 | 3,426 | |||||||||
Accretion of discount | 19,269 | 1,016 | 20,285 | |||||||||
Net change in income taxes | 22,258 | 1,577 | 23,835 | |||||||||
Net change in timing and other (1) | (17,888 | ) | (1,023 | ) | (18,911 | ) | ||||||
Fiscal year ended June 30, 2013 | 97,391 | 10,285 | 107,676 | |||||||||
Net change in prices and production costs (2) | (10,222 | ) | — | (10,222 | ) | |||||||
Revisions of previous quantity estimates (3) | (34,441 | ) | — | (34,441 | ) | |||||||
Divestiture of reserves | — | (10,285 | ) | (10,285 | ) | |||||||
Changes in estimated future development costs | 3,161 | — | 3,161 | |||||||||
Sales and transfers of oil and gas produced | (4,720 | ) | — | (4,720 | ) | |||||||
Previously estimated development cost incurred during the period | 1,723 | — | 1,723 | |||||||||
Accretion of discount | 14,632 | — | 14,632 | |||||||||
Net change in income taxes | 16,746 | — | 16,746 | |||||||||
Net change in timing and other | 2,773 | — | 2,773 | |||||||||
Fiscal year ended June 30, 2014 | $ | 87,043 | $ | — | $ | 87,043 | ||||||
(1) For fiscal year 2013, in the US, there was a $17.9 million downward revision in reserves value due to changes in timing and other. This revision primarily relates to the change, relative to the prior year reserves projections, in the expected timing of drilling and completing PUD wells and the attendant cash flow expected from these wells. During fiscal year 2013, the Company focused its activities at Poplar on executing water shut-off treatments due to their potential attractive economics. As a result, PUDs previously estimated to be drilled during fiscal year 2013 were postponed, resulting in a change in the annual quantity and timing of PUD wells to be drilled in the current reserves projections. | ||||||||||||
(2) For fiscal year 2014, in the US there was a $10.2 million downward revision in reserves value due to the net change in prices and production costs. This change was the result of increased production cost estimates that more than offset impact of the increase in the assumed price per barrel of oil between fiscal year 2013 and 2014. The Company revised its estimated future production costs upwards following a detailed bottom-up analysis of historical and projected production costs undertaken during fiscal year 2014. | ||||||||||||
(3) This revision is related to our PUDs and is discussed in greater detail above under the heading "Analysis of Changes in Proved Reserves." |
Oil_and_Gas_Activities_Tables
Oil and Gas Activities (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Extractive Industries [Abstract] | ' | |||||||||||||||
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | ' | |||||||||||||||
Costs incurred in oil and gas property acquisition, exploration, and development activities, whether capitalized or expensed, are summarized as follows: | ||||||||||||||||
United States | Australia | United Kingdom | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||
Proved | $ | 1,729 | $ | — | $ | — | $ | 1,729 | ||||||||
Unproved | 8 | — | — | 8 | ||||||||||||
Exploration Costs | 541 | 436 | 2,507 | 3,484 | ||||||||||||
Development Costs | 21,174 | — | 551 | 21,725 | ||||||||||||
Total, including asset retirement obligation | $ | 23,452 | $ | 436 | $ | 3,058 | $ | 26,946 | ||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||
Proved | $ | 3,399 | $ | — | $ | — | $ | 3,399 | ||||||||
Unproved | 157 | — | 335 | 492 | ||||||||||||
Exploration Costs | 398 | 3,809 | 3,700 | 7,907 | ||||||||||||
Development Costs | 2,045 | — | — | 2,045 | ||||||||||||
Total, including asset retirement obligation | $ | 5,999 | $ | 3,809 | $ | 4,035 | $ | 13,843 | ||||||||
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization | ' | |||||||||||||||
The net changes in capitalized costs that are currently not being depleted pending the determination of proved reserves can be summarized as follows: | ||||||||||||||||
United States | Australia | United Kingdom | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||
Fiscal year beginning balance | $ | 497 | $ | 3,976 | $ | 1,762 | $ | 6,235 | ||||||||
Additions to capitalized costs (1) | 19,459 | 1,104 | 948 | 21,511 | ||||||||||||
Assets sold or held for sale | — | (5,258 | ) | — | (5,258 | ) | ||||||||||
Charged to expense | — | — | (733 | ) | (733 | ) | ||||||||||
Exchange adjustment | — | 178 | (87 | ) | 91 | |||||||||||
Fiscal year closing balance | $ | 19,956 | $ | — | $ | 1,890 | $ | 21,846 | ||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||
Fiscal year beginning balance | $ | 1,823 | $ | 4,388 | $ | 4,624 | $ | 10,835 | ||||||||
Additions to capitalized costs | 1,954 | — | 335 | 2,289 | ||||||||||||
Reclassified to producing properties | (3,223 | ) | — | — | (3,223 | ) | ||||||||||
Charged to expense | (57 | ) | — | (3,035 | ) | (3,092 | ) | |||||||||
Exchange adjustment | — | (412 | ) | (162 | ) | (574 | ) | |||||||||
Fiscal year closing balance | $ | 497 | $ | 3,976 | $ | 1,762 | $ | 6,235 | ||||||||
(1) The Company began implementing a CO2-enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014. |
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||||
The following table summarizes the unaudited quarterly financial data, including continuing (loss) income before income taxes, net (loss) income, and net (loss) income per common share for the fiscal years ended: | ||||||||||||||||||||
First | Second | Third | Fourth | June 30, | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2014 | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Fiscal year ended June 30, 2014 | ||||||||||||||||||||
Revenue from oil production | $ | 2,134 | $ | 1,632 | $ | 1,907 | $ | 1,928 | $ | 7,601 | ||||||||||
Total operating expenses | $ | 6,591 | $ | 5,047 | $ | 4,311 | $ | 4,000 | $ | 19,949 | ||||||||||
Continuing operations: | ||||||||||||||||||||
(Loss) income from continuing operations (1) | $ | (4,497 | ) | $ | (3,437 | ) | $ | (2,813 | ) | $ | 705 | $ | (10,042 | ) | ||||||
Net (loss) income per basic common share outstanding | ($0.11) | ($0.09) | ($0.07) | $0.01 | ($0.26) | |||||||||||||||
Net (loss) income per diluted common share outstanding | ($0.11) | ($0.09) | ($0.07) | $0.01 | ($0.26) | |||||||||||||||
Attributable to common stockholders: | ||||||||||||||||||||
Net (loss) income | $ | (5,250 | ) | $ | (4,533 | ) | $ | 24,089 | $ | (493 | ) | $ | 13,813 | |||||||
Net (loss) income per basic common share outstanding | ($0.12) | ($0.10) | $0.53 | ($0.01) | $0.30 | |||||||||||||||
Net (loss) income per diluted common share outstanding | ($0.12) | ($0.10) | $0.53 | ($0.01) | $0.30 | |||||||||||||||
(1) A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. | ||||||||||||||||||||
First | Second | Third | Fourth | June 30, 2013 | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Fiscal year ended June 30, 2013 | ||||||||||||||||||||
Revenue from oil production | $ | 1,460 | $ | 1,442 | $ | 1,706 | $ | 1,523 | $ | 6,131 | ||||||||||
Total operating expenses | $ | 6,101 | $ | 7,319 | $ | 6,515 | $ | 4,479 | $ | 24,414 | ||||||||||
Continuing operations: | ||||||||||||||||||||
Loss from continuing operations | $ | (4,405 | ) | $ | (5,746 | ) | $ | (3,726 | ) | $ | (2,952 | ) | $ | (16,829 | ) | |||||
Net loss per basic common share outstanding | ($0.08) | ($0.11) | ($0.08) | ($0.08) | ($0.35) | |||||||||||||||
Net loss per diluted common share outstanding | ($0.08) | ($0.11) | ($0.08) | ($0.08) | ($0.35) | |||||||||||||||
Attributable to common stockholders: | ||||||||||||||||||||
Net loss | $ | (5,310 | ) | $ | (9,783 | ) | $ | (4,332 | ) | $ | (1,064 | ) | $ | (20,489 | ) | |||||
Net loss per basic common share outstanding | ($0.10) | ($0.18) | ($0.09) | ($0.04) | ($0.41) | |||||||||||||||
Net loss per diluted common share outstanding | ($0.10) | ($0.18) | ($0.09) | ($0.04) | ($0.41) |
Basis_of_Presentation_Descript
Basis of Presentation - Description of Operations (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
segment | ||
Presentation and Significant Accounting Policies Information [Line Items] | ' | ' |
Number of operating segments | 3 | ' |
Impairment in available-for-sale securities | $0 | $0 |
Accounts receivable collectability period | '2 months | ' |
Allowance for doubtful accounts receivable | $0 | $0 |
Number of reportable segments | 3 | ' |
Shares issued upon conversion | 1 | ' |
Maximum | ' | ' |
Presentation and Significant Accounting Policies Information [Line Items] | ' | ' |
Maturity period of cash equivalents | '3 months | ' |
Time Deposits | Maximum | ' | ' |
Presentation and Significant Accounting Policies Information [Line Items] | ' | ' |
Maturity period of cash equivalents | '90 days | ' |
Central Petroleum Limited | ' | ' |
Presentation and Significant Accounting Policies Information [Line Items] | ' | ' |
Ownership percentage | 11.00% | ' |
Basis_of_Presentation_Land_Bui
Basis of Presentation - Land, Building and Equipment (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful lives of assets | '3 years |
Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful lives of assets | '15 years |
Basis_of_Presentation_Goodwill
Basis of Presentation - Goodwill Roll-Forward (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill [Line Items] | ' | ' |
Impairment of goodwill | $0 | $0 |
Goodwill [Roll Forward] | ' | ' |
Fiscal year opening balance | 2,174,000 | 2,174,000 |
Sale of Amadeus Basin assets | -1,000,000 | ' |
Fiscal year closing balance | 1,174,000 | 2,174,000 |
Nautilus Poplar, LLC (NP) | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Fiscal year closing balance | 700,000 | ' |
MPUK | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Fiscal year closing balance | 200,000 | ' |
Magellan Petroleum Australia Limited (MPA) | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Fiscal year closing balance | $300,000 | ' |
Sale_of_Amadeus_Basin_Assets_D
Sale of Amadeus Basin Assets (Details) | 0 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Jan. 14, 2013 | Apr. 15, 2014 | Apr. 15, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | Central Petroleum Limited | Central Petroleum Limited | Central Petroleum Limited | Palm Valley | Maximum | ||
USD ($) | AUD | USD ($) | AUD | AUD | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | ||||
AUD | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from first and second cash installment for the sale of Amadeus Basin assets | ' | $4,695,000 | 5,000,000 | $13,859,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued during period for acquisitions | 4,347,826 | ' | ' | ' | ' | ' | ' | ' | 39,500,000 | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | 11.00% | ' | ' |
Amount excluded form reimbursement of capital expenditures | ' | ' | ' | ' | ' | 485,000 | ' | ' | ' | ' | ' | ' |
Royalty rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
AUD/Gigajoule gas price trigger for first ten years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
AUD/Gigajoule gas price trigger for following five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' |
Discount rate | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Bonus discharge amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 |
Discontinued_Operations_Detail
Discontinued Operations (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 15, 2014 | Apr. 15, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | USD ($) | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | Amadeus Basin | |
USD ($) | AUD | USD ($) | AUD | USD ($) | USD ($) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $814 | $939 | ' | ' | ' | ' | ' | ' |
Loss from discontinued operations, net of tax | -4,461 | -2,938 | ' | ' | ' | ' | ' | ' |
Assets and liabilities sold: | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | ' | ' | ' | ' | ' | ' | -10,100 | -9,627 |
Deferred income taxes | ' | ' | ' | ' | ' | ' | -7,217 | -7,217 |
Goodwill allocated to the disposal group | ' | ' | ' | ' | ' | ' | -1,000 | -1,000 |
Asset retirement obligations | ' | ' | ' | ' | ' | ' | 4,457 | 4,575 |
Purchase price adjustments | ' | ' | ' | ' | ' | ' | 743 | 0 |
Total assets and liabilities of discontinued operations | ' | ' | ' | ' | ' | ' | -13,117 | -13,269 |
Proceeds from first and second cash installment for the sale of Amadeus Basin assets | ' | ' | 4,695 | 5,000 | 13,859 | 15,000 | ' | ' |
Stock of Central | 19,147 | 0 | ' | ' | ' | ' | 19,147 | ' |
Total consideration | ' | ' | ' | ' | ' | ' | 37,701 | ' |
Reclassification of foreign currency translation gains to earnings upon sale of foreign subsidiary | ' | ' | ' | ' | ' | ' | 5,767 | ' |
Transaction costs | ' | ' | ' | ' | ' | ' | -339 | ' |
Gain on disposal of discontinued operations, net of tax | $30,012 | $0 | ' | ' | ' | ' | $30,012 | ' |
Securities_AvailableforSale_De
Securities Available-for-Sale (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Amortized cost | $19,339 | $192 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | -7,404 | -148 |
Fair value | $11,935 | $44 |
Debt_Long_Term_Debt_Instrument
Debt - Long Term Debt Instruments (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jan. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 |
Notes Payable | Notes Payable | Notes Payable | Collateralized Debt Obligations | |||
Note Payable Due June 2014 | Note Payable Due June 2014 | Note Payable Due June 2014 | Payment Guarantee | |||
Prime Rate | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Note payable issued amount | ' | ' | ' | $1,700,000 | ' | ' |
Current portion of note payable | 0 | 390,000 | 390,000 | ' | ' | ' |
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% | ' | ' | ' |
Short term line of credit | 0 | 51,000 | ' | ' | ' | ' |
Guarantee Maximum Exposure | ' | ' | ' | ' | ' | $6,000,000 |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Roll-Forward (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' | ||
Fiscal year opening balance | $6,879 | $7,784 | ||
Liabilities assumed | 7 | 3 | ||
Accretion expense | 367 | 433 | ||
Sale of assets (1) | -4,457 | [1] | 0 | [1] |
Revision to estimate (2) | 0 | [2] | -758 | [2] |
Effect of exchange rate changes | 77 | -583 | ||
Fiscal year closing balance | 2,873 | 6,879 | ||
Less current asset retirement obligations | 397 | 476 | ||
Long term asset retirement obligations | $2,476 | $6,403 | ||
[1] | Related to the sale of the Amadeus Basin assets | |||
[2] | The revision primarily resulted from a change in the expected timing of estimated abandonment cost for our oil and gas properties. |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Carried at Fair Value by Classification Level in Valuation Hierarchy (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration payable | $1,852 | $3,940 |
Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 11,935 | 44 |
Contingent consideration payable | 0 | 0 |
Recurring | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 0 | 0 |
Contingent consideration payable | 0 | 0 |
Recurring | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 0 | 0 |
Contingent consideration payable | 1,852 | 3,940 |
Recurring | Estimate of Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 11,935 | 44 |
Contingent consideration payable | $1,852 | $3,940 |
Fair_Value_Measurements_Unobse
Fair Value Measurements - Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Accretion expense | ($315) | ($326) |
Revision to estimate | 2,403 | 458 |
Recurring | Level 3 | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Discount rate | 8.00% | 8.00% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance at beginning of year | 3,940 | 4,072 |
Accretion expense | 315 | 326 |
Revision to estimate | -2,403 | -458 |
Fiscal year closing balance | $1,852 | $3,940 |
Fair_Value_Measurements_Textua
Fair Value Measurements - Textuals (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Rolling production average | '60 days |
Income_Taxes_Income_Before_Inc
Income Taxes - Income Before Income Tax, Domestic and Foreign (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
United States | ' | ' | ' | ' | ' | ' | ' | ' | $4,262 | ($9,449) | |
(LOSS) INCOME AFTER INCOME TAX | 705 | [1] | -2,813 | -3,437 | -4,497 | -2,952 | -3,726 | -5,746 | -4,405 | -10,042 | -16,829 |
Australia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -11,563 | -3,333 | |
United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net Income (Loss) Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ($2,741) | ($4,047) | |
[1] | A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. |
Income_Taxes_Income_Tax_Rate_R
Income Taxes - Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Tax provision computed per federal statutory rate | ($3,013) | ($5,048) |
State taxes, net of federal benefit | 549 | -40 |
Foreign rate differential | 417 | -60 |
Non taxable Australian revenue | -3,144 | 288 |
Goodwill write off | -58 | 0 |
Decreases related to lapse of applicable statute of limitations | 0 | 685 |
Change in valuation allowance | 3,476 | 999 |
Taxable dividends from subsidiaries, net of foreign tax credits | 3,586 | -1,053 |
Foreign tax credit adjustment | -761 | 787 |
Capital loss adjustment | 73 | 309 |
Impact of rate change | 291 | 140 |
Foreign currency translation differential | -434 | 2,912 |
Fair value revision of contingent consideration payable | -710 | -45 |
Other items | -272 | 126 |
Consolidated income tax benefit | $0 | $0 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Provision (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Consolidated current income tax provision | $0 | $0 |
Consolidated deferred income tax provision | 0 | 0 |
Consolidated income tax benefit | 0 | 0 |
Discontinued operations | $7,217 | ($1,267) |
Effective tax rate for continuing operations | 0.00% | 0.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax liabilities | ' | ' |
Land, buildings and equipment | ($4,030) | ($2,946) |
Other items | -157 | -124 |
Total deferred tax liabilities | -4,187 | -3,070 |
Deferred tax assets | ' | ' |
Asset retirement obligations | 923 | 817 |
Net operating losses, capital losses, and foreign tax credit carry forwards | 13,891 | 10,342 |
United Kingdom exploration costs and net operating losses | 3,851 | 3,555 |
Investments | 2,378 | 32 |
Stock option compensation | 2,839 | 1,971 |
Australian capitalized legal costs | 143 | 258 |
Other items | 141 | 219 |
Total deferred tax asset | 24,166 | 17,194 |
Valuation allowance | -19,979 | -14,124 |
Net long term deferred tax asset | $0 | $0 |
Income_Taxes_Operating_Loss_Ca
Income Taxes - Operating Loss Carryforwards (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | $582 |
Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 10,159 |
Expires 2017 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 7 |
Expires 2017 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 310 |
Expires 2018 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 0 |
Expires 2018 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 0 |
Expires 2019 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 0 |
Expires 2019 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 1,411 |
Expires 2020 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 399 |
Expires 2020 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 624 |
Expires 2021 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 176 |
Expires 2021 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 1,443 |
Expires 2022 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 0 |
Expires 2022 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | 3,655 |
Expires 2023 | State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Losses | 0 |
Expires 2023 | Federal Foreign | ' |
Operating Loss Carryforwards [Line Items] | ' |
Foreign Tax Credit | $2,716 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Valuation Allowance [Line Items] | ' | ' |
Change in valuation allowance | ($5,900,000) | ' |
Income tax expense (benefit) | 0 | 0 |
Net long term deferred tax asset | 0 | 0 |
Unrecognized tax benefits | 0 | 0 |
Other Comprehensive Income | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Change in valuation allowance | -2,300,000 | ' |
Amadeus Basin | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Deferred income taxes | ($7,217,000) | ($7,217,000) |
Stock_Based_Compensation_Stock
Stock Based Compensation - Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | |||
Number of Shares | ' | ' | ||
Balance at beginning of year (in shares) | 7,888,957 | 6,753,125 | ||
Granted (in shares) | 3,000,000 | 1,627,500 | ||
Exercised (in shares) | -275,000 | 0 | ||
Forfeited (in shares) | -121,666 | [1] | -491,668 | [1] |
Options outstanding at year end (in shares) | 10,492,291 | 7,888,957 | ||
WAEPS | ' | ' | ||
Weighted Average Exercise Price per Share, Balance at beginning of year | $1.34 | [2] | $1.44 | [2] |
Weighted Average Exercise Price Per Share, Granted | $1.03 | [2] | $1.23 | [2] |
Weighted Average Exercise Price per Share, Exercised | $1.07 | [2] | $0 | [2] |
Weighted Average Exercise Price, Forfeited | $1.03 | [2] | $1.23 | [2] |
Weighted Average Exercise Price per Share, Options outstanding at year end | $1.26 | [2] | $1.34 | [2] |
Weighted average remaining contractual term | '6 years 0 months 10 days | '5 years 10 months 24 days | ||
Historically granted stock options forfeited erroneously | ' | 100,000 | ||
[1] | Fiscal year 2013 includes the effect of 100,000 historically granted stock options forfeited erroneously. | |||
[2] | Weighted average exercise price per share |
Stock_Based_Compensation_Stock1
Stock Based Compensation - Stock Options Outstanding and Exercisable (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Options outstanding, Number of shares | 10,492,291 | |
Options outstanding, Weighted average remaining contractual life | '6 years 0 months 10 days | |
Options outstanding, Weighted average exercise price | $1.26 | [1] |
Options outstanding, Aggregate intrinsic value | $9,857,615 | |
Options exercisable, Number of shares | 7,285,622 | |
Options exercisable, Weighted average remaining contractual life | '4 years 8 months 29 days | |
Options exercisable, Weighted average exercise price | $1.36 | [1] |
Options exercisable, Aggregate Intrinsic Value | $6,152,424 | |
$0.79 - $1.04 | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of exercise prices, minimum | $0.79 | |
Range of exercise prices, maximum | $1.04 | |
Options outstanding, Number of shares | 3,057,500 | |
Options outstanding, Weighted average remaining contractual life | '9 years 2 months 12 days | |
Options outstanding, Weighted average exercise price | $1.02 | [1] |
Options exercisable, Number of shares | 827,500 | |
Options exercisable, Weighted average remaining contractual life | '9 years 1 month 6 days | |
Options exercisable, Weighted average exercise price | $1.02 | [1] |
$1.05 - $1.11 | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of exercise prices, minimum | $1.05 | |
Range of exercise prices, maximum | $1.11 | |
Options outstanding, Number of shares | 1,415,000 | |
Options outstanding, Weighted average remaining contractual life | '8 years 0 months 0 days | |
Options outstanding, Weighted average exercise price | $1.08 | [1] |
Options exercisable, Number of shares | 1,004,998 | |
Options exercisable, Weighted average remaining contractual life | '7 years 7 months 20 days | |
Options exercisable, Weighted average exercise price | $1.09 | [1] |
$1.12 - $1.18 | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of exercise prices, minimum | $1.12 | |
Range of exercise prices, maximum | $1.18 | |
Options outstanding, Number of shares | 1,191,666 | |
Options outstanding, Weighted average remaining contractual life | '7 years 8 months 12 days | |
Options outstanding, Weighted average exercise price | $1.13 | [1] |
Options exercisable, Number of shares | 624,999 | |
Options exercisable, Weighted average remaining contractual life | '7 years 2 months 22 days | |
Options exercisable, Weighted average exercise price | $1.13 | [1] |
$1.19 - $1.40 | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of exercise prices, minimum | $1.19 | |
Range of exercise prices, maximum | $1.40 | |
Options outstanding, Number of shares | 3,100,000 | |
Options outstanding, Weighted average remaining contractual life | '1 year 10 months 25 days | |
Options outstanding, Weighted average exercise price | $1.20 | [1] |
Options exercisable, Number of shares | 3,100,000 | |
Options exercisable, Weighted average remaining contractual life | '1 year 10 months 22 days | |
Options exercisable, Weighted average exercise price | $1.20 | [1] |
$1.41 - $2.41 | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of exercise prices, minimum | $1.41 | |
Range of exercise prices, maximum | $2.41 | |
Options outstanding, Number of shares | 1,728,125 | |
Options outstanding, Weighted average remaining contractual life | '5 years 0 months 10 days | |
Options outstanding, Weighted average exercise price | $2.03 | [1] |
Options exercisable, Number of shares | 1,728,125 | |
Options exercisable, Weighted average remaining contractual life | '5 years 0 months 10 days | |
Options exercisable, Weighted average exercise price | $2.03 | [1] |
[1] | Weighted average exercise price per share. |
Stock_Based_Compensation_Fair_
Stock Based Compensation - Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Number of options | 3,000,000 | 1,627,500 | |
Performance Based Options | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Number of options | 1,500,000 | [1] | ' |
Weighted-average grant date fair value per share | 0.57 | [1] | ' |
Expected dividend | 0 | [1] | ' |
Forfeiture rate | 0.00% | [1] | ' |
Expected volatility, Minimum | 61.70% | [1] | ' |
Expected volatility, Maximum | 61.90% | [1] | ' |
Performance Based Options | Minimum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Risk free interest rate | 1.50% | [1] | ' |
Expected life (years) | '0 years 4 months 25 days | [1] | ' |
Performance Based Options | Maximum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Risk free interest rate | 1.70% | [1] | ' |
Expected life (years) | '1 year 7 months 7 days | [1] | ' |
Market Based Options | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Number of options | 1,500,000 | [2] | ' |
Weighted-average grant date fair value per share | 0.69 | [2] | ' |
Expected dividend | 0 | [2] | ' |
Forfeiture rate | 0.00% | [2] | ' |
Risk free interest rate | 2.80% | [2] | ' |
Expected life (years) | '2 years 7 months | [2] | ' |
Expected volatility | 66.60% | [2] | ' |
Time Based and Performance Based Options | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Number of options | ' | 1,627,500 | |
Weighted-average grant date fair value per share | ' | 0.61 | |
Expected dividend | ' | 0 | |
Forfeiture rate | ' | 0.00% | |
Expected volatility, Minimum | ' | 60.30% | |
Expected volatility, Maximum | ' | 63.50% | |
Time Based and Performance Based Options | Minimum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Risk free interest rate | ' | 0.60% | |
Expected life (years) | ' | '5 years 1 month 6 days | |
Time Based and Performance Based Options | Maximum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Risk free interest rate | ' | 1.30% | |
Expected life (years) | ' | '6 years | |
[1] | The terms related to these PBOs were estimated using an average probabilistic weighted method. | ||
[2] | The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term. |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 16, 2013 | Dec. 08, 2010 | Jan. 16, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 16, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||
Director | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 1998 Stock Incentive Plan | Restricted Stock Units (RSUs) | Other Options | In-the-money stock options | In-the-money stock options | Performance Based Options | Performance Based Options | Market Based Options | Market Based Options | CO2-EOR Pilot Program at Poplar | CO2-EOR Development Project at Poplar | Sale of Substantially All of the Amadeus Basin Assets | Approval of a Farmout Agreement or Participation in Drilling a Well in the Weald Basin | Approval of a Farmout Agreement in the Bonaparte Basin | |||||
2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | ||||||||||||
trading_day | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of shares authorized | ' | ' | ' | ' | 5,000,000 | 288,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum number of shares allowed to be issued each year | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Expiration term | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of options | 3,000,000 | 1,627,500 | ' | 3,000,000 | ' | ' | ' | 0 | ' | ' | 1,500,000 | [1] | 1,500,000 | 1,500,000 | [2] | 1,500,000 | ' | ' | ' | ' | ' |
Performance metrics weighted average | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 40.00% | 20.00% | 20.00% | 10.00% | ||
Per share closing price (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.35 | ' | ' | ' | ' | ' | ||
Number of consecutive trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ||
Median stock price (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.35 | ' | ' | ' | ' | ' | ||
Market based or performance based options, not vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Market based and performance based shares available for future issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 365,107 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of stock options vesting | $1,200,000 | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock options exercised (in shares) | 275,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common shares from options exercised, net of shares withheld for tax obligations (in shares) | 231,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash received from the exercise of stock options | 201,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based compensation expense | 2,000,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unrecognized stock compensation expense related to options granted | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Weighted average cost recognition period | '1 year 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Additional options expected to vest | 1,315,832 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Grants in period (in shares) | ' | ' | 266,664 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | The terms related to these PBOs were estimated using an average probabilistic weighted method. | ||||||||||||||||||||
[2] | The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term. |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
10-May-13 | Jun. 30, 2014 | Jun. 30, 2013 | |
Class of Stock [Line Items] | ' | ' | ' |
Preferred stock, shares authorized | ' | 50,000,000 | ' |
Issuance of Series A Preferred Stock | ' | 0 | 19,239,734 |
Proceeds from issuance of preferred stock, net of $520 issuance cost | ' | $0 | $22,982,000 |
Shares issued upon conversion | ' | 1 | ' |
Accrued preferred stock dividends | ' | 429,000 | 202,000 |
Preferred stock dividend | ' | 1,696,000 | 202,000 |
Accrued dividends | ' | 429,000 | 202,000 |
INVESTING ACTIVITIES: | ' | ' | ' |
Additions to property and equipment | ' | -20,923,000 | -2,732,000 |
Proceeds from Amadeus Basin sale | ' | 18,554,000 | 0 |
Net cash used in investing activities | ' | -2,369,000 | -2,732,000 |
Accretion expense of contingent consideration payable | ' | 315,000 | 326,000 |
Series A Preferred Stock | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Preferred stock, shares authorized | ' | 28,000,000 | 28,000,000 |
Issuance of Series A Preferred Stock | 19,239,734 | ' | ' |
Preferred stock, par value (usd per share) | $0.01 | $0.01 | $0.01 |
Price per share (in dollars per share) | $1.22 | ' | ' |
Proceeds from issuance of preferred stock, net of $520 issuance cost | 23,500,000 | ' | ' |
Shares issued upon conversion | 1 | ' | ' |
Dividend rate | 7.00% | ' | ' |
Forced conversion maximum allowable amount to exceed conversion price for 20 of 30 consecutive trading days | 200.00% | ' | ' |
Forced conversion average daily trading volume denominator | 45 | ' | ' |
Written notied for redemption period | '30 days | ' | ' |
Redemption annualized rate of return | 20.00% | ' | ' |
Liquidation premium until second anniversary of issuance | 115.00% | ' | ' |
Liquidation premium after second anniversary until third anniversary of issuance | 110.00% | ' | ' |
Liquidation premium after third anniversary until fourth anniversery of issuance | 105.00% | ' | ' |
Preferred stock dividend | ' | 1,700,000 | 500,000 |
Accrued dividends | ' | 429,000 | 202,000 |
INVESTING ACTIVITIES: | ' | ' | ' |
Accretion expense of contingent consideration payable | ' | ' | 202,000 |
Series A Preferred Stock | One Stone | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Maximum number of Board members with 15% ownership | 2 | ' | ' |
Maximum number of Board members with 10% ownership of fully diluted shares | 1 | ' | ' |
Minority veto rights, capital expenditures | $15,000,000 | ' | ' |
Minority veto rights, Board of DIrectors maximum members | 12 | ' | ' |
Standstill period | '2 years | ' | ' |
Preferred_Stock_Preferred_Stoc1
Preferred Stock Preferred Stock Rollforward (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Number of shares issued | ' | ' |
Fiscal year opening balance | 19,239,734 | 0 |
Issuance of Series A Preferred Stock | 0 | 19,239,734 |
PIK dividend shares issued, for previously accrued dividend | 164,607 | 0 |
Current year PIK dividends shares issued | 685,095 | 0 |
Fiscal year closing balance | 20,089,436 | 19,239,734 |
Amount | ' | ' |
Fiscal year opening balance | $23,502 | $0 |
Issuance of Series A Preferred Stock | 0 | 23,502 |
PIK dividend shares issued, for previously accrued dividend | 202 | 0 |
Current year PIK dividends shares issued | 835 | 0 |
Fiscal year closing balance | $24,539 | $23,502 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||||
Jan. 14, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 24, 2012 | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | |||
Stock repurchase program authorized amount | ' | ' | ' | ' | $2,000,000 | |||
Treasury shares acquired | ' | 9,425,114 | 9,414,176 | 0 | ' | |||
Shares issued for acquisition | 4,347,826 | ' | ' | ' | ' | |||
Repayments of related party debt | 10,000,000 | ' | ' | ' | ' | |||
Payments for repurchase of warrants | ' | 0 | 813,000 | ' | ' | |||
Treasury stock value | ' | 9,344,000 | 9,333,000 | 0 | ' | |||
Net shares repurchased for employee tax costs upon vesting of restricted stock, shares | ' | 10,938 | ' | ' | ' | |||
Net shares repurchased for employee tax costs upon vesting of restricted stock, amount | ' | 11,000 | ' | ' | ' | |||
Exercise price of the warrant | ' | $1.26 | [1] | $1.34 | [1] | $1.44 | [1] | ' |
Retired Warrant | ' | ' | ' | ' | ' | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | |||
Payments for repurchase of warrants | 800,000 | ' | ' | ' | ' | |||
Common stock price on repurchase date | ' | ' | $0.90 | ' | ' | |||
Exercise price of the warrant | ' | ' | $1.15 | ' | ' | |||
Expected dividend | ' | ' | 0 | ' | ' | |||
Risk free interest rate | ' | ' | 0.20% | ' | ' | |||
Expected life (years) | ' | ' | '1 year 6 months | ' | ' | |||
Expected volatility | ' | ' | 60.80% | ' | ' | |||
Stock Repurchase Program | ' | ' | ' | ' | ' | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | |||
Treasury shares acquired | ' | 0 | 149,539 | ' | ' | |||
Remaining common stock authorized for repurchase | ' | 1,900,000 | ' | ' | ' | |||
Treasury stock value | ' | 0 | 137,000 | ' | ' | |||
Collateral Agreement | ' | ' | ' | ' | ' | |||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | |||
Treasury shares acquired | 9,264,637 | 0 | 9,264,637 | ' | ' | |||
Treasury stock value | $9,200,000 | $0 | $9,196,000 | ' | ' | |||
Treasury stock average cost (dollars per share) | $0.99 | ' | ' | ' | ' | |||
[1] | Weighted average exercise price per share |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Antidilutive Securities (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive securities | 6,785,622 | 125,000 |
In-the-money stock options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive securities | 6,335,622 | 75,000 |
Non-vested restricted stock | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive securities | 450,000 | 50,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Loss from continuing operations | $705 | [1] | ($2,813) | ($3,437) | ($4,497) | ($2,952) | ($3,726) | ($5,746) | ($4,405) | ($10,042) | ($16,829) |
Preferred stock dividends and accretion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | -1,696 | -722 | |
Net loss from continuing operations, net of dividends attributable to preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | -11,738 | -17,551 | |
Net income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 25,551 | -2,938 | |
Net income (loss) attributable to common stockholders | ($493) | $24,089 | ($4,533) | ($5,250) | ($1,064) | ($4,332) | ($9,783) | ($5,310) | $13,813 | ($20,489) | |
Basic weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 45,348,840 | 49,642,083 | |
Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | |
Diluted weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 45,348,840 | 49,642,083 | |
Basic net (loss) earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss from continuing operations, net of dividends attributable to preferred stock (usd per share) | $0.01 | ($0.07) | ($0.09) | ($0.11) | ($0.08) | ($0.08) | ($0.11) | ($0.08) | ($0.26) | ($0.35) | |
Net income (loss) from discontinued operations (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.56 | ($0.06) | |
Net income (loss) attributable to common stockholders (usd per share) | ($0.01) | $0.53 | ($0.10) | ($0.12) | ($0.04) | ($0.09) | ($0.18) | ($0.10) | $0.30 | ($0.41) | |
Diluted net (loss) earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net loss from continuing operations, net of dividends attributable to preferred stock (usd per share) | $0.01 | ($0.07) | ($0.09) | ($0.11) | ($0.08) | ($0.08) | ($0.11) | ($0.08) | ($0.26) | ($0.35) | |
Net income (loss) from discontinued operations (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.56 | ($0.06) | |
Net income (loss) attributable to common stockholders (usd per share) | ($0.01) | $0.53 | ($0.10) | ($0.12) | ($0.04) | ($0.09) | ($0.18) | ($0.10) | $0.30 | ($0.41) | |
[1] | A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
segment | ||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ||||
Revenue from oil production | $1,928,000 | $1,907,000 | $1,632,000 | $2,134,000 | $1,523,000 | $1,706,000 | $1,442,000 | $1,460,000 | $7,601,000 | $6,131,000 | ||||
Loss from continuing operations | 705,000 | [1] | -2,813,000 | -3,437,000 | -4,497,000 | -2,952,000 | -3,726,000 | -5,746,000 | -4,405,000 | -10,042,000 | -16,829,000 | |||
Assets | 81,435,000 | ' | ' | ' | 82,272,000 | ' | ' | ' | 81,435,000 | 82,272,000 | ||||
Expenditures for additions to long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 20,923,000 | 2,732,000 | ||||
Depletion, depreciation, amortization, and accretion | ' | ' | ' | ' | ' | ' | ' | ' | 1,123,000 | 1,121,000 | ||||
Lease operating | ' | ' | ' | ' | ' | ' | ' | ' | 6,257,000 | 4,851,000 | ||||
Exploration | ' | ' | ' | ' | ' | ' | ' | ' | 3,484,000 | 7,907,000 | ||||
Nautilus Poplar, LLC (NP) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Other Income | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ||||
Revenue from oil production | ' | ' | ' | ' | ' | ' | ' | ' | 7,601,000 | 6,131,000 | ||||
Loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,828,000 | -326,000 | ||||
Assets | 27,299,000 | ' | ' | ' | 26,093,000 | ' | ' | ' | 27,299,000 | 26,093,000 | ||||
Expenditures for additions to long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 20,334,000 | 2,124,000 | ||||
Depletion, depreciation, amortization, and accretion | ' | ' | ' | ' | ' | ' | ' | ' | 977,000 | 988,000 | ||||
Lease operating | ' | ' | ' | ' | ' | ' | ' | ' | 6,257,000 | 4,851,000 | ||||
Exploration | ' | ' | ' | ' | ' | ' | ' | ' | 541,000 | 398,000 | ||||
Magellan Petroleum Australia Limited (MPA) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -934,000 | -3,555,000 | ||||
Assets | 14,073,000 | ' | ' | ' | 32,735,000 | ' | ' | ' | 14,073,000 | 32,735,000 | ||||
Exploration | ' | ' | ' | ' | ' | ' | ' | ' | 436,000 | 3,809,000 | ||||
MPUK | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -2,585,000 | -4,726,000 | ||||
Assets | 4,486,000 | [2] | ' | ' | ' | 2,021,000 | [2] | ' | ' | ' | 4,486,000 | [2] | 2,021,000 | [2] |
Expenditures for additions to long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 526,000 | 350,000 | ||||
Exploration | ' | ' | ' | ' | ' | ' | ' | ' | 2,507,000 | 3,700,000 | ||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -8,351,000 | -8,222,000 | ||||
Assets | 111,113,000 | ' | ' | ' | 96,229,000 | ' | ' | ' | 111,113,000 | 96,229,000 | ||||
Expenditures for additions to long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 63,000 | 258,000 | ||||
Depletion, depreciation, amortization, and accretion | ' | ' | ' | ' | ' | ' | ' | ' | 146,000 | 133,000 | ||||
Inter-segment Elimination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Assets | ($75,536,000) | [3] | ' | ' | ' | ($74,806,000) | [3] | ' | ' | ' | ($75,536,000) | [3] | ($74,806,000) | [3] |
[1] | A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. | |||||||||||||
[2] | Refer Note 20 for disclosures relating to non-cash charges to capitalized costs. | |||||||||||||
[3] | Asset inter-segment eliminations are primarily derived from investments in subsidiaries. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Amounts payable in fiscal year: | ' | ' |
2015 | $262,000 | ' |
2016 | 268,000 | ' |
2017 | 273,000 | ' |
2018 | 90,000 | ' |
Total | 893,000 | ' |
Rent Expenses | $600,000 | $600,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
J. Thomas Wilson | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Business Acquisition, Contingent Consideration, Potential Cash Payment, Interest, Percentage | 52.00% | ' |
Accrued and Other Liabilities | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Accrued income taxes current | $1.60 | $1 |
Prepaid and Other Assets | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Amount of income tax liability if not paid by related party | 1.6 | 1 |
Nautilus Poplar, LLC (NP) | Maximum | ' | ' |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' |
Contingent consideration potential cash payment | $5 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2013 | Oct. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | |
Nautilus Poplar, LLC (NP) | J. Robinson West | Devizes International Consulting Limited (Devizes) | Devizes International Consulting Limited (Devizes) | US Federal Tax Withholding | US Federal Tax Withholding | US Federal Tax Withholding | US Federal Tax Withholding | ||
owner | Nautilus Poplar, LLC (NP) | White Bear, LLC | Young Energy Prize S.A. (YEP) | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | $100,000 | $2,000,000 | $1,300,000 | $600,000 |
Membership interest | ' | 83.50% | ' | ' | ' | ' | ' | ' | ' |
Number of Majority Owners | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Noninterest Income, Other Operating Income | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of transaction | ' | ' | 2,200,000 | 161,000 | 82,000 | ' | ' | ' | ' |
Related party payable | ' | ' | $0 | ' | ' | ' | ' | ' | ' |
Employee_Severance_Costs_Detai
Employee Severance Costs (Details) (Employee Severance, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' |
Fiscal year beginning balance | $418 | $0 |
Charges to loss from discontinued operations, net of tax | 1,210 | ' |
Cash payments, discontinued operations | 1,210 | ' |
Cash payments | -418 | -419 |
Fiscal year closing balance | 0 | 418 |
General and Administrative Expense | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Charges to general and administrative expense | $0 | $837 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Fiscal year opening balance | $10,526 | |
Other comprehensive income (loss) before reclassification | -6,768 | |
Amounts reclassified from other comprehensive loss | -5,767 | [1] |
Net current period other comprehensive loss | -12,535 | |
Fiscal year ended June 30, 2014 | -2,009 | |
Accumulated Translation Adjustment | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Fiscal year opening balance | 10,674 | |
Other comprehensive income (loss) before reclassification | 488 | |
Amounts reclassified from other comprehensive loss | -5,767 | [1] |
Net current period other comprehensive loss | -5,279 | |
Fiscal year ended June 30, 2014 | 5,395 | |
Unrealized investment holding loss | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | |
Fiscal year opening balance | -148 | |
Other comprehensive income (loss) before reclassification | -7,256 | |
Amounts reclassified from other comprehensive loss | 0 | [1] |
Net current period other comprehensive loss | -7,256 | |
Fiscal year ended June 30, 2014 | ($7,404) | |
[1] | Reclassification of foreign currency translation gain to earnings upon the sale or substantially complete liquidation of an investment in a foreign entity. The reclassified gain is reported in the consolidated statement of operations under gain on disposal of discontinued operations, net of tax. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 18, 2014 | Jul. 01, 2014 | Jul. 16, 2014 | Jul. 16, 2014 | Sep. 17, 2014 | Sep. 17, 2014 | Sep. 17, 2014 | |
Subsequent Event | Non-employee Directors | Vice President | Restricted Stock Units (RSUs) | Revolving Credit Facility | Prime Rate | Floor Rate | |||
Subsequent Event | Subsequent Event | Vice President | Subsequent Event | Revolving Credit Facility | Revolving Credit Facility | ||||
Subsequent Event | Subsequent Event | Subsequent Event | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | 96,330 | ' | ' | ' | ' | ' |
Unvested options forfeited | ' | ' | ' | ' | 980,210 | ' | ' | ' | ' |
Unvested RSUs forfeited | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Stock options exercised (in shares) | 275,000 | 0 | 266,666 | ' | ' | ' | ' | ' | ' |
Common shares from options exercised, net of shares withheld for tax obligations (in shares) | 231,015 | ' | 203,360 | ' | ' | ' | ' | ' | ' |
Shares, including forfeited shares, available for future issuance | ' | ' | 819,323 | ' | ' | ' | ' | ' | ' |
Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | $8,000,000 | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.25% |
Supplemental_Oil_and_Gas_Infor2
Supplemental Oil and Gas Information (Unaudited) - Proved Reserves Quantities (Details) | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | |||
well | drilling_rig | |||
well | ||||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Number of PUD wells removed from projections | -7 | -4 | ||
Number of wells planned for drilling | ' | 16 | ||
Number of wells for infill drilling program | ' | 20 | ||
Number of wells in drilling program | 9 | ' | ||
Number of wells recently drilled for CO2EOR pilot project | 5 | ' | ||
Number of drilling rigs utillized in PUD programs | ' | 2 | ||
Previously forecasted | ' | ' | ||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Number of drilling rigs utillized in PUD programs | ' | 1 | ||
Oil (in Mbbls) | ' | ' | ||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Proved Reserves, Beginning Balance | 7,368,600 | 8,905,200 | ||
Revision of previous estimates | -1,515,000 | -1,215,700 | ||
Sales of minerals in place | 0 | ' | ||
Fiscal year ended June 30, 2014 | -117,900 | -320,900 | ||
Proved Reserves, Ending Balance | 5,735,700 | 7,368,600 | ||
Proved Developed Reserves (Volume) | 2,494,600 | 1,581,500 | ||
Proved Undeveloped Reserves (Volume) | 3,241,100 | 5,787,100 | ||
Gas (in MMcf) | ' | ' | ||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Proved Reserves, Beginning Balance | 11,400 | 11,500 | ||
Revision of previous estimates | 0 | 200 | ||
Sales of minerals in place | -11,400 | 0 | ||
Fiscal year ended June 30, 2014 | 0 | -300 | ||
Proved Reserves, Ending Balance | 0 | 11,400 | ||
Proved Developed Reserves (Volume) | 0 | 11,400 | ||
Proved Undeveloped Reserves (Volume) | 0 | 0 | ||
United States | Oil (in Mbbls) | ' | ' | ||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Proved Reserves, Beginning Balance | 7,368,600 | 8,905,200 | ||
Revision of previous estimates | -1,515,000 | -1,215,700 | ||
Sales of minerals in place | 0 | ' | ||
Fiscal year ended June 30, 2014 | -117,900 | -320,900 | ||
Proved Reserves, Ending Balance | 5,735,700 | 7,368,600 | ||
Proved Developed Reserves (Volume) | 2,494,600 | 1,581,500 | ||
Proved Undeveloped Reserves (Volume) | 3,241,100 | 5,787,100 | ||
Australia | Gas (in MMcf) | ' | ' | ||
Proved Developed and Undeveloped Reserves [Abstract] | ' | ' | ||
Proved Reserves, Beginning Balance | 11,400 | [1] | 11,500 | [1] |
Revision of previous estimates | 0 | [1] | 200 | [1] |
Sales of minerals in place | -11,400 | ' | ||
Fiscal year ended June 30, 2014 | 0 | [1] | -300 | [1] |
Proved Reserves, Ending Balance | 0 | [1] | 11,400 | [1] |
Proved Developed Reserves (Volume) | 0 | [1] | 11,400 | [1] |
Proved Undeveloped Reserves (Volume) | 0 | [1] | 0 | [1] |
[1] | The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific long term supply contracts. |
Supplemental_Oil_and_Gas_Infor3
Supplemental Oil and Gas Information (Unaudited) - Proved Oil and Gas Quantities (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
United States | Oil | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Average Sales Prices | 86.11 | 82.9 |
Australia | Gas | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Average Sales Prices | ' | 4.92 |
Supplemental_Oil_and_Gas_Infor4
Supplemental Oil and Gas Information (Unaudited) - Discounted Future Net Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' | ' |
Discount Rate | 10.00% | ' | ' |
Future cash inflows | $493,901 | $666,800 | ' |
Future production costs | -226,464 | -283,279 | ' |
Future development costs | -23,594 | -33,017 | ' |
Future income tax expense | -73,820 | -112,193 | ' |
Future net cash flows | 170,023 | 238,311 | ' |
10% annual discount | -82,980 | -130,635 | ' |
Standardized measures of discounted future net cash flows | 87,043 | 107,676 | 130,075 |
United States | ' | ' | ' |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' | ' |
Future cash inflows | 493,901 | 610,853 | ' |
Future production costs | -226,464 | -244,703 | ' |
Future development costs | -23,594 | -28,922 | ' |
Future income tax expense | -73,820 | -112,193 | ' |
Future net cash flows | 170,023 | 225,035 | ' |
10% annual discount | -82,980 | -127,644 | ' |
Standardized measures of discounted future net cash flows | 87,043 | 97,391 | 121,496 |
Australia | ' | ' | ' |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' | ' |
Future cash inflows | 0 | 55,947 | ' |
Future production costs | 0 | -38,576 | ' |
Future development costs | 0 | -4,095 | ' |
Future income tax expense | 0 | 0 | ' |
Future net cash flows | 0 | 13,276 | ' |
10% annual discount | 0 | -2,991 | ' |
Standardized measures of discounted future net cash flows | $0 | $10,285 | $8,579 |
Supplemental_Oil_and_Gas_Infor5
Supplemental Oil and Gas Information (Unaudited) - Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward] | ' | ' |
Fiscal year beginning balance | $107,676 | $130,075 |
Net change in prices and production costs | -10,222 | -8,579 |
Revisions of previous quantity estimates | -34,441 | -26,311 |
Divestiture of reserves | -10,285 | ' |
Changes in estimated future development costs | 3,161 | 3,478 |
Sales and transfers of oil and gas produced | -4,720 | -19,622 |
Previously estimated development cost incurred during the period | 1,723 | 3,426 |
Accretion of discount | 14,632 | 20,285 |
Net change in income taxes | 16,746 | 23,835 |
Net change in timing and other (1) | 2,773 | -18,911 |
Fiscal year ending balance | 87,043 | 107,676 |
United States | ' | ' |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward] | ' | ' |
Fiscal year beginning balance | 97,391 | 121,496 |
Net change in prices and production costs | -10,222 | -7,955 |
Revisions of previous quantity estimates | -34,441 | -26,503 |
Divestiture of reserves | 0 | ' |
Changes in estimated future development costs | 3,161 | 3,473 |
Sales and transfers of oil and gas produced | -4,720 | -20,178 |
Previously estimated development cost incurred during the period | 1,723 | 3,419 |
Accretion of discount | 14,632 | 19,269 |
Net change in income taxes | 16,746 | 22,258 |
Net change in timing and other (1) | 2,773 | -17,888 |
Fiscal year ending balance | 87,043 | 97,391 |
Australia | ' | ' |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward] | ' | ' |
Fiscal year beginning balance | 10,285 | 8,579 |
Net change in prices and production costs | 0 | -624 |
Revisions of previous quantity estimates | 0 | 192 |
Divestiture of reserves | -10,285 | ' |
Changes in estimated future development costs | 0 | 5 |
Sales and transfers of oil and gas produced | 0 | 556 |
Previously estimated development cost incurred during the period | 0 | 7 |
Accretion of discount | 0 | 1,016 |
Net change in income taxes | 0 | 1,577 |
Net change in timing and other (1) | 0 | -1,023 |
Fiscal year ending balance | $0 | $10,285 |
Oil_and_Gas_Activities_Unaudit1
Oil and Gas Activities (Unaudited) - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' |
Proved | $1,729 | $3,399 |
Unproved | 8 | 492 |
Exploration Costs | 3,484 | 7,907 |
Development Costs | 21,725 | 2,045 |
Total, including asset retirement obligation | 26,946 | 13,843 |
United States | ' | ' |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' |
Proved | 1,729 | 3,399 |
Unproved | 8 | 157 |
Exploration Costs | 541 | 398 |
Development Costs | 21,174 | 2,045 |
Total, including asset retirement obligation | 23,452 | 5,999 |
Australia | ' | ' |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' |
Proved | 0 | 0 |
Unproved | 0 | 0 |
Exploration Costs | 436 | 3,809 |
Development Costs | 0 | 0 |
Total, including asset retirement obligation | 436 | 3,809 |
United Kingdom | ' | ' |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' |
Proved | 0 | 0 |
Unproved | 0 | 335 |
Exploration Costs | 2,507 | 3,700 |
Development Costs | 551 | 0 |
Total, including asset retirement obligation | $3,058 | $4,035 |
Oil_and_Gas_Activities_Unaudit2
Oil and Gas Activities (Unaudited) - Net Changes in Capitalized Costs That Are Not Being Depleted Pending Determination of Proved Reserves (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ' | ' | |
Fiscal year beginning balance | $6,235 | $10,835 | |
Additions to capitalized costs (1) | 21,511 | [1] | 2,289 |
Assets sold or held for sale | -5,258 | ' | |
Reclassified to producing properties | ' | -3,223 | |
Charged to expense | -733 | -3,092 | |
Exchange adjustment | 91 | -574 | |
Fiscal year closing balance | 21,846 | 6,235 | |
United States | ' | ' | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ' | ' | |
Fiscal year beginning balance | 497 | 1,823 | |
Additions to capitalized costs (1) | 19,459 | [1] | 1,954 |
Assets sold or held for sale | 0 | ' | |
Reclassified to producing properties | ' | -3,223 | |
Charged to expense | 0 | -57 | |
Exchange adjustment | 0 | 0 | |
Fiscal year closing balance | 19,956 | 497 | |
Australia | ' | ' | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ' | ' | |
Fiscal year beginning balance | 3,976 | 4,388 | |
Additions to capitalized costs (1) | 1,104 | [1] | 0 |
Assets sold or held for sale | -5,258 | ' | |
Reclassified to producing properties | ' | 0 | |
Charged to expense | 0 | 0 | |
Exchange adjustment | 178 | -412 | |
Fiscal year closing balance | 0 | 3,976 | |
United Kingdom | ' | ' | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ' | ' | |
Fiscal year beginning balance | 1,762 | 4,624 | |
Additions to capitalized costs (1) | 948 | [1] | 335 |
Assets sold or held for sale | 0 | ' | |
Reclassified to producing properties | ' | 0 | |
Charged to expense | -733 | -3,035 | |
Exchange adjustment | -87 | -162 | |
Fiscal year closing balance | $1,890 | $1,762 | |
[1] | The Company began implementing a CO2-enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014. |
Oil_and_Gas_Activities_Details
Oil and Gas Activities (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Extractive Industries [Abstract] | ' | ' |
Impairment | $0 | $890,000 |
Exploration abandonment and impairment expense | $700,000 | $2,200,000 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue from oil production | $1,928,000 | $1,907,000 | $1,632,000 | $2,134,000 | $1,523,000 | $1,706,000 | $1,442,000 | $1,460,000 | $7,601,000 | $6,131,000 | |
Total operating expenses | 4,000,000 | 4,311,000 | 5,047,000 | 6,591,000 | 4,479,000 | 6,515,000 | 7,319,000 | 6,101,000 | 19,949,000 | 24,414,000 | |
Loss from continuing operations | 705,000 | [1] | -2,813,000 | -3,437,000 | -4,497,000 | -2,952,000 | -3,726,000 | -5,746,000 | -4,405,000 | -10,042,000 | -16,829,000 |
Net (loss) income per basic common share from continuing operations (usd per share) | $0.01 | ($0.07) | ($0.09) | ($0.11) | ($0.08) | ($0.08) | ($0.11) | ($0.08) | ($0.26) | ($0.35) | |
Net (loss) income per diluted common share outstanding from continuing operations (usd per share) | $0.01 | ($0.07) | ($0.09) | ($0.11) | ($0.08) | ($0.08) | ($0.11) | ($0.08) | ($0.26) | ($0.35) | |
Net (loss) income attributable to common stockholders | -493,000 | 24,089,000 | -4,533,000 | -5,250,000 | -1,064,000 | -4,332,000 | -9,783,000 | -5,310,000 | 13,813,000 | -20,489,000 | |
Net (loss) income per basic common share outstanding attributable to common stockholders (usd per share) | ($0.01) | $0.53 | ($0.10) | ($0.12) | ($0.04) | ($0.09) | ($0.18) | ($0.10) | $0.30 | ($0.41) | |
Net (loss) income per diluted common share outstanding attributable to common stockholders (usd per share) | ($0.01) | $0.53 | ($0.10) | ($0.12) | ($0.04) | ($0.09) | ($0.18) | ($0.10) | $0.30 | ($0.41) | |
Amadeus Basin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gain on sale of assets | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Nautilus Poplar, LLC (NP) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue from oil production | ' | ' | ' | ' | ' | ' | ' | ' | 7,601,000 | 6,131,000 | |
Loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 1,828,000 | -326,000 | |
Other Income | ' | ' | ' | ' | ' | ' | ' | ' | $2,100,000 | ' | |
[1] | A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $2.1 million of other income associated with our NP segment, refer Note 7. |