Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Oct. 09, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Central Index Key | 61,398 | ||
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 | 5,702,532 | ||
Entity Public Float | $ 37,845,881 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,051 | $ 16,422 |
Securities available for sale | 4,230 | 11,935 |
Accounts receivable — trade | 420 | 886 |
Accounts receivable — working interest partners | 130 | 0 |
Inventories | 651 | 739 |
Prepaid and other assets | 2,100 | 2,105 |
Total current assets | 8,582 | 32,087 |
PROPERTY AND EQUIPMENT, NET (SUCCESSFUL EFFORTS METHOD): | ||
Proved oil and gas properties | 20,857 | 29,335 |
Less accumulated depletion, depreciation, amortization and accretion | (4,355) | (3,575) |
Unproved oil and gas properties | 709 | 550 |
Wells in progress | 19,660 | 21,296 |
Land, buildings, and equipment (net of accumulated depreciation of $682 and $483 as of June 30, 2015, and 2014, respectively) | 202 | 368 |
Net property and equipment | 37,073 | 47,974 |
OTHER NON-CURRENT ASSETS: | ||
Goodwill, net | 500 | 1,174 |
Deferred income taxes | 0 | 0 |
Other long term assets | 545 | 200 |
Total other non-current assets | 1,045 | 1,374 |
Total assets | 46,700 | 81,435 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,534 | 3,586 |
Accrued and other liabilities | 2,120 | 2,121 |
Accrued dividends | 0 | 429 |
Current portion of asset retirement obligations | 0 | 397 |
Total current liabilities | 4,654 | 6,533 |
LONG TERM LIABILITIES: | ||
Note payable | 5,500 | 0 |
Asset retirement obligations, net of current portion | 2,647 | 2,476 |
Contingent consideration payable | 0 | 1,852 |
Other long term liabilities | 98 | 118 |
Total long term liabilities | $ 8,245 | $ 4,446 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
Total preferred stock | $ 25,850 | $ 24,539 |
EQUITY: | ||
Common stock (par value $0.01 per share): Authorized 300,000,000 shares, issued 6,917,027 and 6,875,605 as of June 30, 2015, and 2014, respectively | 69 | 69 |
Treasury stock (at cost): 1,209,389 and 1,178,139 shares as of June 30, 2015, and 2014, respectively | (9,806) | (9,344) |
Capital in excess of par value | 93,386 | 93,467 |
Accumulated deficit | (81,006) | (36,266) |
Accumulated other comprehensive income (loss) | 5,302 | (2,009) |
Total equity attributable to Magellan Petroleum Corporation | 7,945 | 45,917 |
Non-controlling interest in subsidiary | 6 | 0 |
Total equity | 7,951 | 45,917 |
Total liabilities, preferred stock and equity | 46,700 | 81,435 |
Series A Convertible Preferred Stock [Member] | ||
LONG TERM LIABILITIES: | ||
Total preferred stock | $ 25,850 | $ 24,539 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Accumulated depreciation | $ 682 | $ 483 |
Preferred stock, authorized (in shares) | 50,000,000 | |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 6,917,027 | 6,875,605 |
Common stock, issued (in shares) | 6,917,027 | 6,875,605 |
Treasury stock, (in shares) | 1,209,389 | 1,178,139 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 28,000,000 | 28,000,000 |
Preferred Stock, issued (in shares) | 21,162,697 | 20,089,436 |
Preferred stock, outstanding (in shares) | 21,162,697 | 20,089,436 |
Preferred stock, liquidation preference | $ 28,435 | $ 28,220 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES: | ||
REVENUE FROM OIL PRODUCTION | $ 4,459 | $ 7,601 |
OPERATING EXPENSES: | ||
Lease operating | 5,089 | 6,257 |
Depletion, depreciation, amortization, and accretion | 1,149 | 1,123 |
Exploration | 1,563 | 3,484 |
General and administrative | 8,611 | 9,085 |
Impairment of proved oil and gas properties | 17,353 | 0 |
Impairment of goodwill | 674 | 0 |
Loss on sale of assets | 316 | 0 |
Total operating expenses | 34,755 | 19,949 |
Loss from operations | (30,296) | (12,348) |
OTHER (EXPENSE) INCOME: | ||
Net interest expense | (83) | (233) |
Amortization of deferred financing costs | (100) | (10) |
Loss on investment in securities | (15,087) | 0 |
Fair value revision of contingent consideration payable | 1,888 | 2,403 |
Other income | 267 | 146 |
Total other (expense) income | (13,115) | 2,306 |
Loss from continuing operations, before tax | (43,411) | (10,042) |
Income tax expense | 0 | 0 |
Loss from continuing operations, net of tax | (43,411) | (10,042) |
Loss from discontinued operations, net of tax | 0 | (4,461) |
Gain on disposal of discontinued operations, net of tax | 0 | 30,012 |
Net income from discontinued operations | 0 | 25,551 |
Net (loss) income | (43,411) | 15,509 |
Net loss attributable to non-controlling interest in subsidiary | 411 | 0 |
Net (loss) income attributable to Magellan Petroleum Corporation | (43,000) | 15,509 |
Preferred stock dividends | (1,740) | (1,696) |
Net (loss) income attributable to common stockholders | $ (44,740) | $ 13,813 |
Earnings per common share: | ||
Weighted average number of basic shares outstanding | 5,710,288 | 5,671,603 |
Weighted average number of diluted shares outstanding | 5,710,288 | 5,671,603 |
Basic (loss) earnings per common share: | ||
Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (usd per share) | $ (7.83) | $ (2.07) |
Net income from discontinued operations (usd per share) | 0 | 4.51 |
Net income (loss) attributable to common stockholders (usd per share) | (7.83) | 2.44 |
Diluted (loss) earnings per common share: | ||
Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (usd per share) | (7.83) | (2.07) |
Net income from discontinued operations (usd per share) | 0 | 4.51 |
Net income (loss) attributable to common stockholders (usd per share) | $ (7.83) | $ 2.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (43,411) | $ 15,509 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation (loss) gain | (2,141) | 1,237 |
Reclassification of foreign currency translation loss to earnings upon reversal of permanent investment in foreign subsidiaries | 659 | 0 |
Reclassification of foreign currency translation gain to earnings upon sale of foreign subsidiary | 0 | (5,767) |
Reclassification of impairment loss on securities available-for-sale to earnings due to determination as other than temporary | 15,087 | 0 |
Unrealized holding losses on securities available-for-sale | (6,294) | (8,005) |
Other comprehensive income (loss), net of tax | 7,311 | (12,535) |
Comprehensive (loss) income | $ (36,100) | $ 2,974 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income | Non-Controlling Interest |
Shares, Beginning Balance at Jun. 30, 2013 | 6,757,145 | ||||||
Amount, Beginning Balance at Jun. 30, 2013 | $ 42,440 | $ 67 | $ 91,259 | $ (9,333) | $ (50,079) | $ 10,526 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 15,509 | 15,509 | |||||
Other comprehensive loss, net of tax | (12,535) | (12,535) | |||||
Stock and stock based compensation (in shares) | 89,583 | ||||||
Stock and stock based compensation | $ 2,009 | $ 1 | 2,008 | ||||
Net shares repurchased for employee tax costs upon vesting of restricted stock (in shares) | (1,367) | ||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock | $ (11) | (11) | |||||
Stock options exercised, net of shares withheld to satisfy employee tax obligations (in shares) | 34,375 | 28,877 | |||||
Stock options exercised, net of shares withheld to satisfy employee tax obligations | $ 201 | $ 1 | 200 | ||||
Preferred stock dividend | (1,696) | (1,696) | |||||
Shares, Ending Balance at Jun. 30, 2014 | 6,875,605 | ||||||
Amount, Ending Balance at Jun. 30, 2014 | 45,917 | $ 69 | 93,467 | (9,344) | (36,266) | (2,009) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (43,411) | (43,000) | (411) | ||||
Other comprehensive loss, net of tax | 7,311 | 7,311 | |||||
Stock and stock based compensation (in shares) | 30,791 | ||||||
Stock and stock based compensation | $ 1,606 | $ 0 | 1,606 | ||||
Net shares repurchased for employee tax costs upon vesting of restricted stock (in shares) | (5,981) | (5,981) | |||||
Net shares repurchased for employee tax costs upon vesting of restricted stock | $ (104) | (104) | |||||
Executive and employee forfeiture of options upon resignation | (648) | (648) | |||||
Executive forfeiture of restricted stock upon resignation (in shares) | (17,500) | ||||||
Executive forfeiture of restricted stock upon resignation | (67) | (67) | |||||
Purchase of stock and options from former executive | $ (1,445) | (983) | (462) | ||||
Stock options exercised, net of shares withheld to satisfy employee tax obligations (in shares) | 61,849 | 34,112 | |||||
Stock options exercised, net of shares withheld to satisfy employee tax obligations | $ 115 | 115 | |||||
Preferred stock dividend | (1,740) | (1,740) | |||||
Formation of and capital contributions to Utah CO2 LLC | 417 | 417 | |||||
Shares, Ending Balance at Jun. 30, 2015 | 6,917,027 | ||||||
Amount, Ending Balance at Jun. 30, 2015 | $ 7,951 | $ 69 | $ 93,386 | $ (9,806) | $ (81,006) | $ 5,302 | $ 6 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity (Parenthetical) | Jul. 10, 2015 |
Subsequent Event | |
Reverse stock split | 0.125 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net (loss) income | $ (43,411) | $ 15,509 |
Adjustments to reconcile net loss (income) to net cash used in operating activities: | ||
Foreign transaction loss | 635 | 165 |
Amortization of deferred finance costs | 100 | 10 |
Depletion, depreciation, amortization, and accretion | 1,149 | 1,123 |
Fair value revision of contingent consideration payable | (1,888) | (2,403) |
Accretion expense of contingent consideration payable | 36 | 315 |
Inventory book to physical adjustment | 123 | 0 |
Loss on investment in securities | 15,087 | 0 |
Loss (gain) on disposal of assets | 316 | (30,012) |
Exploration costs previously capitalized | 20 | 733 |
Stock compensation expense | 891 | 2,009 |
Impairment of proved oil and gas properties | 17,353 | 0 |
Impairment of goodwill | 674 | 0 |
Net changes in operating assets and liabilities: | ||
Accounts receivable | 478 | 52 |
Inventories | (61) | (184) |
Prepayments and other current assets | (21) | (704) |
Accounts payable and accrued liabilities | (67) | 1,719 |
Net cash used in operating activities of continuing operations | (8,586) | (11,668) |
INVESTING ACTIVITIES: | ||
Additions to property and equipment | (9,073) | (20,923) |
Utah CO2 option | (276) | 0 |
Proceeds from sale of securities | 21 | 0 |
Proceeds from Amadeus Basin sale | 0 | 18,554 |
Net cash used in investing activities | (9,328) | (2,369) |
FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 115 | 201 |
Purchase of common stock | (566) | (11) |
Purchase of stock options | (983) | 0 |
Payment of preferred stock dividend | (859) | (429) |
Payment of deferred financing costs | (150) | 0 |
Borrowings (repayments) on line of credit, net | 0 | 0 |
Short term debt issuances | 0 | 1,000 |
Short term debt repayments | 0 | (1,441) |
Long term debt issuances | 5,500 | 0 |
Capital contributions by non-controlling interest | 147 | 0 |
Net cash provided by (used in) financing activities | 3,204 | (680) |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Adjustments to reconcile net loss to net cash used in operating activities of discontinued operations | 0 | (31) |
Net cash used in investing activities of discontinued operations | 0 | (1,412) |
Net cash used in discontinued operations | 0 | (1,443) |
Effect of exchange rate changes on cash and cash equivalents | (661) | 113 |
Net decrease in cash and cash equivalents | (15,371) | (16,047) |
Cash and cash equivalents at beginning of period | 16,422 | 32,469 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,051 | 16,422 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 102 | 18 |
Interest received | (20) | (102) |
Income taxes paid | 0 | 0 |
Supplemental schedule of non-cash investing and financing activities: | ||
Securities available-for-sale received upon sale of Amadeus Basin assets (Note 3) | 0 | 19,147 |
Unrealized holding loss and foreign currency translation loss on securities available-for-sale | (7,684) | (7,256) |
Change in accounts payable and accrued liabilities related to property and equipment | (1,017) | 1,315 |
Preferred stock dividends paid in kind | 1,311 | 1,037 |
Accrued preferred stock dividends | 0 | 429 |
Increase in both accrued and other liabilities and prepaid and other assets related to Sopak | 105 | 571 |
Property contributed for capital contribution of non-controlling interest | 102 | 0 |
Property contributed for deferred capital contribution of non-controlling interest | 98 | 0 |
Accrued capital contributions of non-controlling interest | $ 168 | $ 0 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation Description of Operations Magellan Petroleum Corporation (the "Company" or "Magellan" or "MPC" or "we") is an independent oil and gas exploration and production company focused on the development of CO 2 -enhanced oil recovery ("CO 2 -EOR") projects in the Rocky Mountain region. Historically active internationally, Magellan also owns significant exploration acreage in the Weald Basin, onshore UK, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farmout. The Company conducts its operations through three wholly owned subsidiaries corresponding to the geographical 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. Our strategy is to enhance shareholder value by maximizing the value of our existing assets. Our portfolio of operations includes several early stage oil and gas exploration and development projects, the successful development of which requires significant capital, as well as significant engineering and management resources. We are committed to efficiently investing financial, technical and management capital into these projects to establish their technical and economic viability, which in turn could create significant value for our shareholders. We were founded in 1957 and incorporated in Delaware in 1967. The Company's common stock has been trading on NASDAQ since 1972 under the ticker symbol "MPET". Our principal executive offices are located at 1775 Sherman Street, Suite 1950, Denver, Colorado 80203, and our phone number is (720) 484-2400. Going Concern The Company has incurred losses from operations for the year ended June 30, 2015 , of $30.3 million . In addition, during the fiscal year working capital has decreased from $25.6 million at June 30, 2014 , to $3.9 million at June 30, 2015 , and the Company's cash balance has decreased to $1.1 million as of June 30, 2015 . The Company continues to experience liquidity constraints and has begun selling certain of its non-core assets to fund its operations. However, proceeds from these asset sales may not provide sufficient liquidity to fund operations for the next twelve months. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts of liabilities that might result from the outcome of this uncertainty. The Company is currently looking for potential merger candidates that may offer improved liquidity and the ability to raise additional capital. The Company is focused on maintaining production while efficiently reducing its operating and general and administrative costs. Special Committee of the Board of Directors On June 5, 2015 , the Board of Directors of the Company approved the formation of a special committee of the Board of Directors ("the "Special Committee") to i) engage in a strategic alternatives review process and ii) amend compensation arrangements of executives and employees for the purpose of retention and alignment of interests with the interests of the common stockholders during such strategic alternatives review process. Principles of Consolidation and 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." Amounts expressed in the currency of the United Kingdom are indicated as "GBP." During the year ended June 30, 2015 , the Company formed a majority owned subsidiary, Utah CO2 LLC, a Delaware limited liability company ("Utah CO2"), through which the Company purchased an option to acquire CO 2 at Farnham Dome in Utah. The Company owns a controlling 51% of the equity in Utah CO2 and consolidates this entity in the accompanying consolidated financial statements. The remaining 49% is owned by two separate third parties. Another third-party owns a 10% economic participation interest in the Company's 51% equity interest in Utah CO2, which participation interest does not bear any governance rights over the Company's investment in Utah CO2. The non-controlling interest reported in the accompanying consolidated financial statements relates to the non-controlling interest in this entity, including the participation interest. As of June 30, 2015 the Company owned an 11% interest in Central Petroleum Limited (ASX:CTP) ("Central"), a Brisbane-based exploration and production company traded on the Australian Securities Exchange. The Company accounts for this investment as securities available-for-sale in the accompanying consolidated financial statements. Reverse Stock Split On July 10, 2015, the Company's stockholders approved and the Company completed a one-for-eight reverse stock split with respect to the Company's common stock. For purposes of presentation, the consolidated financial statements and footnotes have been adjusted for the number of post-split shares as if the split had occurred at the beginning of the earliest period presented. 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, including stock-based compensation expense, 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 loss, a separate component of stockholders' equity. A component of accumulated other comprehensive loss 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. During the year ended June 30, 2015 , the Company made a determination that it was no longer permanently invested in its foreign subsidiaries because (i) the Company has begun an effort to repay its intercompany balances through the repatriation of cash from these subsidiaries and (ii) the Company is increasingly focusing on its US operations. As such, the Company recorded on its statement of operations an expense reclassification from accumulated other comprehensive loss arising from foreign currency exchange losses on its intercompany account balances. 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. 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 loss in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, the Company performs 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. During the year, the Company determined that the value of its investment in Central had suffered an other-than temporary impairment. As such, the unrealized loss was reclassified from other comprehensive income to the consolidated statement of operations. 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, 2015 , and 2014 . 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 non-commercial. If an exploratory well is deemed to be non-commercial, the well costs are charged to exploration expense as dry hole costs. Exploration expenses include dry hole costs, geological, and geophysical expenses. Non-commercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses. The cost of CO 2 injection is capitalized until a production response is seen as a result of the injection and it is determined that the well has found proved reserves. After oil production from the well begins, CO 2 injection costs are expensed as incurred. 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 estimated proceeds from salvaging equipment. 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. Impairment of Long-Lived Assets The Company reviews the carrying amount of its oil and gas properties and unproved leaseholds for impairment annually or whenever events or changes in circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected future cash flows of its oil and gas properties and compares such 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. The Company undertook such a review during the year ended June 30, 2015 , and as a result of the recent decline in oil prices, the Company concluded that its proved oil and gas properties were impaired and recorded an impairment loss of $17.4 million in the accompanying consolidated statement of operations. 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, 2015 , management concluded that as a result of the decline in reserve value, principally due to the decline in commodity prices, and a downward revision in reserve quantities as the result of the exclusion of PUD reserves from the Company's reserve estimates, goodwill related to Nautilus Poplar had been impaired and recorded an impairment expense of $0.7 million . There was no impairment of goodwill at June 30, 2014. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. The quantitative analysis performed included a review of the June 30, 2015 reserve estimates using forward commodity prices and an estimate of the differential less the liabilities for NP, and comparing the result of the analysis to the recorded carrying value of the net assets. The analysis indicated that the carrying value of the net assets exceeded the calculated value of the reserves net of liabilities, and therefore, an impairment had occurred. As of June 30, 2015 , $0.2 million of recorded goodwill related to MPUK, and $0.3 million related to MPA. Changes in goodwill can be summarized as follows for the years ended: June 30, 2015 2014 (In thousands) Fiscal year opening balance $ 1,174 $ 2,174 Sale of Amadeus Basin assets (see Note 3) — (1,000 ) Impairment of Nautilus Poplar goodwill $ (674 ) Fiscal year closing balance $ 500 $ 1,174 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 collection of the revenue is probable. Major Customers The Company's consolidated oil production revenue is derived from its NP segment and was generated from two customers for the year ended June 30, 2015 , and a single customer for the year ended June 30, 2014 . Stock Based Compensation Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options ("TBOs") are expensed on a straight-line basis over the vesting period. Market based options ("MBOs") are expensed on a straight-line basis over the derived service period, even if the market condition is not achieved. Performance based options ("PBOs") are amortized on a straight-line basis between the date upon which the achievement of the relevant performance condition is deemed probable and the date 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 MBOs, 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, 2015 , or 2014 , 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, 2015 , 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, 2015 , 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 - Segment Information . (Loss) Earnings 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 effects of potentially 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 potentially dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potentially dilutive impact of the shares of Series A 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 anti-dilutive. 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 Preferred Stock in the calculation of diluted earnings (loss) per share during the fiscal year ended June 30, 2015 , and 2014 , respectively, as their effect would have been anti-dilutive. Accumulated Other Comprehensive Loss Comprehensive (loss) income is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive (loss) income. Other comprehensive (loss) income is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net (loss) income. Recently Issued Accounting Standards In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-15, which amends presentation and disclosure requirements outlined in ASU 2015-03 (discussed below) by clarifying guidance for debt issuance costs related to line of credit arrangements, providing that the SEC would not object to presentation of debt issuance costs related to a line of credit arrangement as an asset, and amortizing them ratably over the term of the line of credit arrangement. The Company does not expect adoption of ASU 2015-15 to have a material effect on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU 2014-09 (discussed below) by one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. In July 2015, the FASB issued ASU No. 2015-11, which requires that inventory that is measured using first-in, first-out or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard will be effective for the first interim period within the Company's fiscal year beginning after December 15, 2016 and is required to be adopted prospectively; early adoption is permitted. The Company does not expect the adoption of this accounting standard to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and early adoption is permitted. At June 30, 2015, adoption of this standard would have resulted in a reclassification from other long term assets to note payable of $50 thousand on the Company's accompanying consolidated balance sheet. In August 2014, the FASB issued ASU No. 2014-15, which provides guidance on management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, and annual and interim periods thereafter. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, which requires a reporting entity to treat a performance target included within a share-based payment award that affects vesting and that could be achieved after the requisite service period as a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The Company has chosen to early adopt this standard retrospectively to July 1, 2013 , which adoption did not impact the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 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, as amended by ASU 2015-14, above, will be effective for us in the first quarter of our fiscal year 2019; unless early adopted in the prior fiscal year as permitted under the amendment. The Company is currently evaluating the timing of adoption, which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. In February 2013, the FASB issued 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. 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, 2015 . |
Sale of Amadeus Basin Assets
Sale of Amadeus Basin Assets | 12 Months Ended |
Jun. 30, 2015 | |
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 through the sale of the Company's wholly owned subsidiary, Magellan Petroleum (N.T.) Pty. Ltd ("MPNT"), to Central's wholly owned subsidiary Central Petroleum PV Pty. Ltd ("Central PV"). In exchange for the assets, Central paid to Magellan (i) AUD $20.0 million ; (ii) customary purchase price adjustments amounting to AUD $800 thousand ; and (iii) 39.5 million newly issued shares of Central stock (ASX: CTP), equivalent to an ownership interest in Central of approximately 11% . 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
Discontinued Operations | 12 Months Ended |
Jun. 30, 2015 | |
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. Summarized results of the Company's discontinued operations are as follows: June 30, 2015 2014 (In thousands) Revenue $ — $ 814 Loss from discontinued operations, net of tax $ — $ (4,461 ) As of June 30, 2014, the gain on disposal of discontinued operations can be summarized as follows: June 30, 2014 (In thousands) Assets and liabilities sold: Property and equipment, net $ (10,100 ) Deferred income taxes (7,217 ) Goodwill allocated to the disposal group (1,000 ) Asset retirement obligations 4,457 Purchase price adjustments 743 Total assets and liabilities of discontinued operations (13,117 ) 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 Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Equity securities $ 19,147 $ — $ (14,917 ) $ 4,230 June 30, 2014 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Equity securities $ 19,339 $ — $ (7,404 ) $ 11,935 Subsequent to June 30, 2015 , to meet its needs for working capital, the Company began the process of selling its investment in Central. Proceeds from sales of portions of the Company's investment in Central were well below the investment's amortized cost, and the Company could no longer maintain its ability to hold the entire investment for a period of time to allow the investment to recover. As such, the Company determined that unrealized losses related to its investment in Central were other-than-temporary, and recognized an impairment loss in the amount of $14.9 million . Also, during the year ended June 30, 2015 , the Company realized a loss on the sale of its other investment in securities available-for-sale in the amount of $171 thousand . No other-than-temporary impairment or losses related to securities available-for-sale were recorded in the consolidated statement of operations for the year ended June 30, 2014 . |
Debt
Debt | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 - Debt Long-Term Loan . On September 17, 2014 , the Company, through its wholly owned subsidiary NP, entered into a senior secured revolving loan facility (the "Revolving Loan Facility") with West Texas State Bank ("WTSB"). The Revolving Loan Facility had a floating interest rate based on prime rate with a floor rate of 3.25% , with interest payable quarterly, a maturity of September 30, 2015 , and a total available borrowing limit of $8.0 million , of which $5.5 million was drawn as of June 30, 2015 , when the Company entered into an amendment to the Revolving Loan Facility whereby the Revolving Loan Facility was converted into a single term loan (the "Term Loan"). The maturity of the Term Loan was extended to June 30, 2020 and bears interest at prime rate plus 1.50% with an interest rate floor of 4.75% . The Term Loan is secured by substantially all of NP's assets and a guarantee of Magellan secured by a pledge of its membership interest in NP. During the first twelve months of the Term Loan, only monthly interest payments are payable. Principal is amortized over its remaining four year term. Magellan and NP under the terms of the Term Loan, are subject to certain restrictive covenants customary in similar loan agreements. At June 30, 2015 , the Company was in compliance with all such covenants. Scheduled annual principal payments for the Term Loan are as follows: Total (In thousands) Payable in fiscal year: 2016 $ — 2017 1,375 2018 1,375 2019 1,375 2020 1,375 Total $ 5,500 During the year ended June 30, 2014 , the outstanding principal of a $1.7 million note payable by NP, re-issued in January 2011 (the "Note Payable"), was fully amortized. The variable interest rate of the Note Payable was based upon the Wall Street Journal Prime Rate (the "Index") plus 1.00% , subject to a floor rate of 6.25% . Under the Note Payable, NP was subject to certain customary financial and restrictive covenants. The Note Payable was collateralized by a first mortgage and an assignment of production from Poplar and was guaranteed by Magellan up to $6.0 million , not to exceed the amount of the principal owed. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (In thousands) Fiscal year opening balance $ 2,873 $ 6,879 Liabilities assumed — 7 Accretion expense 171 367 Sale of assets (1) (346 ) (4,457 ) Revision to estimate — — Effect of exchange rate changes (51 ) 77 Fiscal year closing balance 2,647 2,873 Less current asset retirement obligations — 397 Long term asset retirement obligations $ 2,647 $ 2,476 (1) In fiscal 2015 the Company sold its 40% interest in PEDL 126, the exploration license that contains the Markwells Wood-1 wellbore. By selling the license and the wellbore, the Company was able to eliminate its current asset retirement obligation related to the wellbore. In fiscal 2014, the Company sold its Amadeus Basin assets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 , and 2014 , 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 exposed to concentrations of credit risk primarily consist of cash and cash equivalents. The carrying values for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities reflect theses items' cost, which approximates fair value based on the timing of the anticipated cash flows and current market conditions. The recorded value of the Term Loan (see Note 5 - Debt ), approximates fair value due to its variable interest 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, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Securities available-for-sale $ 4,230 $ — $ — $ 4,230 Liabilities: Contingent consideration payable $ — $ — $ — $ — 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 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 based in part on 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 or more frequently as deemed appropriate, 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. Revisions to the fair value estimate of the contingent consideration payable are 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. As of June 30, 2014, the downward revisions were a result of the fact that a second production payout could not be reasonably assumed on the basis of current production estimates corresponding to the estimated proved reserves of Poplar at June 30, 2014. The Company undertook a review of its planned drilling program at Poplar with respect to its proved undeveloped reserves as of June 30, 2015, and determined, in light of the current oil price environment and liquidity situation, to defer this drilling program for an indefinite period. Without this drilling program and the production volumes anticipated therefrom, the Company does not currently anticipate that the conditions for the payment of the contingent consideration will be met in the foreseeable future. As such, the Company has reversed the contingent consideration payable in its entirety as of June 30, 2015 in the accompanying consolidated financial statements. 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 2015 2014 Contingent consideration payable Discounted cash flow model Discount rate N/A 8.0% First production payout N/A June 30, 2015 Second production payout N/A N/A The following table presents a roll forward of the contingent consideration payable for the fiscal years ended: June 30, 2015 2014 (In thousands) Fiscal year beginning balance $ 1,852 $ 3,940 Accretion expense 36 315 Revision to estimate (1,888 ) (2,403 ) Fiscal year closing balance $ — $ 1,852 Assets and liabilities measured on a nonrecurring basis The Company also utilizes fair value to perform an impairment test on its oil and gas properties and goodwill annually, or whenever events and circumstances indicate that a decline in the recoverability of their carrying values may have occurred. Fair value is estimated using expected discounted 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 year ended June 30, 2015 , the Company reviewed its proved oil and gas properties and its recorded goodwill for a possible impairment as a result of the recent decline in oil prices and the quantity of reserves due to revisions related to the exclusion of the PUD reserve estimates, and concluded that an impairment allowance of $17.4 million was required to adjust the carrying value of its proved oil and gas properties to fair value and an impairment allowance of $674 thousand was required to adjust the carrying value of its goodwill at Nautilus Poplar to fair value. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. The quantitative analysis performed included a review of the June 30, 2015 reserve estimates using forward commodity prices and an estimate of the differential less the liabilities for NP, and comparing the result of the analysis to the recorded carrying value of the net assets. The analysis indicated that the carrying value of the net assets exceeded the calculated value of the reserves net of liabilities, and therefore, an impairment had occurred. For the fiscal year ended June 30, 2014 , no events or circumstances were identified that would indicate that an impairment of oil and gas properties or goodwill had occurred. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (In thousands) United States $ (24,798 ) $ 4,262 Australia (16,403 ) (11,563 ) United Kingdom (1,799 ) (2,741 ) Net loss from continuing operations attributable to Magellan Petroleum Corporation $ (43,000 ) $ (10,042 ) The following reconciles the Company's effective tax rate to the federal statutory tax rate for the fiscal years ended: June 30, 2015 2014 (In thousands) Tax provision computed per federal statutory rate $ (14,620 ) $ (3,414 ) State taxes, net of federal benefit (1,005 ) 549 Foreign rate differential 908 818 Non taxable Australian revenue — (3,144 ) Goodwill write off — (58 ) APB 23 adjustment 9,632 — Change in valuation allowance 2,846 3,476 Taxable dividends from subsidiaries, net of foreign tax credits — 3,586 Foreign tax credit adjustment (310 ) (761 ) Capital loss adjustment 1,493 73 Impact of rate change 189 291 Foreign currency translation differential 1,255 (434 ) Stock based compensation forfeitures 545 Contingent consideration payable write off (630 ) (710 ) Other items (303 ) (272 ) Consolidated income tax expense (benefit) $ — $ — The following summarizes components of our income tax provision for the fiscal years ended: June 30, 2015 2014 (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 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, 2015 2014 (In thousands) Deferred tax liabilities: Land, buildings and equipment $ — $ (4,030 ) Foreign investments (7,451 ) Other items (128 ) (157 ) Total deferred tax liabilities (7,579 ) (4,187 ) Deferred tax assets: Acquisition and development costs 365 — Asset retirement obligations 990 923 Net operating losses, capital losses, and foreign tax credit carry forwards 18,521 13,891 United Kingdom exploration costs and net operating losses 3,639 3,851 Investments 100 2,378 Stock option compensation 2,184 2,839 Australian capitalized legal costs 116 143 Other items 141 141 Total deferred tax asset 26,056 24,166 Valuation allowance (18,477 ) (19,979 ) Net long term deferred tax asset $ — $ — For the fiscal year ended June 30, 2015 , the valuation allowance decreased by $1.5 million , primarily due to recognition of the deferred tax liability related to reversal of the APB 23 position on all foreign subsidiaries net of additional book losses, including the impairment of oil and gas properties and unrealized losses due to other-than-temporary impairment on available for sale securities reclassed to the statement of operations. The US gross deferred tax assets and liabilities as of June 30, 2015, and 2014, respectively, consist of foreign tax credits, property, plant and equipment, and stock options. The Australian deferred tax assets and liabilities as of June 30, 2015 consist primarily of unrealized capital loss, and net operating loss carry forwards. The Australian capital loss and net operating losses are carried forward indefinitely. During fiscal year 2015, the Company made a determination that it was no longer permanently invested in its foreign subsidiaries. As of June 30, 2015, the Company has estimated that it has an overall deferred tax asset of $8.6 million , net of a deferred tax liability related to the basis difference in its foreign subsidiaries of $10.9 million . The Company has $13.7 million of net operating loss carryovers for federal income tax purposes as of June 30, 2015, of which $252 thousand is not benefited for financial statement purposes as it relates to tax deductions that deviate from compensation expense for financial statement purposes. The benefit of these excess tax deductions will not be recognized for financial statement purposes until the related deductions reduce taxes payable. During fiscal year 2014 the Company sold its Amadeus Basin assets held by MPA, which is reported under discontinued operations. The reduction in gain reported in discontinued operations of $7.2 million for the year ended June 30, 2014 is related to the disposal of the Australian Petroleum Resource Rent Tax deferred tax asset, refer to Note 3 - Discontinued Operations . During the year ended June 30, 2014 , the Company utilized all of its available net operating loss carryforwards from the state of Montana. As a result, the Company is subject to taxation in the state of Montana based upon its apportioned income to that state, calculated using a waters edge methodology. 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, 2015 . As of June 30, 2015 , 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 2012 - 2014 Colorado 2012 - 2014 Maine 2012 - 2014 Montana 2010 - 2014 Australia 2011 - 2014 United Kingdom 2011 - 2014 At June 30, 2015 , 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: Federal Net Operating Losses State Net Operating Losses Federal Foreign Tax Credit (In thousands) Expires: 2017 $ — $ 8 $ 310 2018 — 3,103 — 2019 — 559 1,411 2020 — 2,212 624 2021 — 27 1,443 2022 — 13,309 3,655 2023 and thereafter 13,709 — 1,668 Total $ 13,709 $ 19,218 $ 9,111 There are no uncertain tax positions that would meet the more-likely-than-not recognition threshold for the fiscal years ended June 30, 2015 , or 2014 . |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
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 selected employees, including officers, directors, and consultants of the Company (or subsidiaries of the Company). The stated maximum number of shares of the Company's common stock authorized for awards under the 2012 Stock Incentive Plan is 625,000 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 36,054 as of January 15, 2013. The number of aggregate shares available for issuance will be reduced by 1 share for each share granted in the form of a stock option or stock appreciation right and 2 shares for each share granted in the form of any award that is not a stock option or stock appreciation right that is settled in stock. The maximum aggregate annual number of common shares or options that may be granted to one participant is 125,000 , 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 62,500 . The maximum term of the 2012 Stock Incentive Plan is ten years. In October 2014, the Company repurchased 189,062 options from a former executive, which options were previously granted under the Company's 1998 Stock Plan. Pursuant to the terms of the 2012 Stock Incentive Plan, the unissued shares underlying these unexercised options were added to the shares available for issuance under the 2012 Stock Incentive Plan. Stock Option Grants Under the 2012 Stock Incentive Plan, stock option grants may contain vesting provisions such that they are TBOs, PBOs, or MBOs. During the fiscal year ended June 30, 2015 , the Company granted 16,875 TBOs, 156,250 PBOs, and 49,998 MBOs to executives and employees. During the fiscal year ended June 30, 2014 , the Company granted 77,493 TBOs, 187,500 PBOs and 187,500 MBOs to executives and employees. Performance targets that trigger the vesting of the 156,250 PBOs granted in October 2014 include: (i) procuring a commercially viable commitment for the supply of CO 2 to a full-field CO 2 -EOR development at Poplar at or below a certain price threshold (weighted 20% ); (ii) preparing Poplar for a commercially viable CO 2 -EOR development (weighted 40% ); (iii) progressing the Company's UK operations by participation in a well in the Weald Basin (weighted 20% ); and (iv) moving forward with the Farnham Dome project by both exercising one of the options related to the purchase of CO 2 at Farnham Dome and identifying an applicable oil project to utilize CO 2 from Farnham Dome (weighted 20% ). The determination of whether any of these performance targets has been met is subject to a determination of the Board. As of June 30, 2015 , no performance targets had been met. The 49,998 MBOs granted in October 2014 will vest and become exercisable, subject to certain provisions related to ongoing employment and a three -year vesting period, if, at the end of any period of 90 trading days (a “Window”), (A) the closing price of the common stock as reported by NASDAQ (the “Closing Price”) on each of the first 10 trading days of a Window equals or exceeds $40.00 per share; and (B) the median of the Closing Prices for the common stock during such Window equals or exceeds $40.00 per share. Performance metrics used to measure the potential vesting of the PBOs granted in October 2013 consist of: (i) completing the drilling of the CO 2 -EOR pilot program at Poplar (weighted 10% ); (ii) Board approval of a full field CO 2 -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% ). As of June 30, 2015 , performance metrics (i), (iii) and (iv) had been met. Potential vesting of the market based stock options granted in October 2013 is subject to the Company maintaining a $18.80 per share closing price for 10 consecutive trading days and median stock price of $18.80 over a period of 90 days. During the year ended June 30, 2015 , 61,849 stock options were exercised, resulting in the issuance of 34,112 shares of common stock, which number is net of shares withheld to satisfy certain employee tax and exercise price obligations. During the prior year, 34,375 stock options were exercised, resulting in the issuance of 28,877 shares of common stock, which number is net of shares withheld to satisfy certain employee tax and exercise price obligations. During the year ended June 30, 2015 , 427,969 stock options were forfeited or canceled, including 189,062 options repurchased from a former executive (see Cancellations, below). During the prior year, 16,250 stock options were canceled or forfeited. During the year ended June 30, 2015 , 12,499 stock options expired without exercise. During the prior year period, no stock options expired. As of June 30, 2015 , a total of 332,028 MBOs and PBOs had not vested, and 169,453 shares, including forfeited or canceled options, remained available for future issuance under the 2012 Stock Incentive Plan. During the fiscal year ended June 30, 2015 , no options were issued outside of the 2012 Stock Incentive Plan. Options outstanding have expiration dates ranging from September 30, 2015 , to January 12, 2025 . The following table summarizes the stock option activity for the fiscal years ended: June 30, 2015 2014 Number of Shares WAEPS (1) Number of Shares WAEPS (1) Fiscal year beginning balance 1,311,528 $10.08 909,660 $10.90 Granted 223,123 $13.83 452,493 $8.27 Exercised (61,849 ) $8.74 (34,375 ) $8.53 Forfeited/canceled (427,969 ) $9.68 (16,250 ) $8.31 Expired (12,499 ) $8.90 — $0.00 Options outstanding at end of fiscal year 1,032,334 $11.15 1,311,528 $10.08 Weighted average remaining contractual term of outstanding options 5.6 years 6.0 years (1) Weighted average exercise price per share. The total fair value of stock options vesting during the fiscal years ended June 30, 2015 , and 2014 , was $132 thousand , and $1.2 million , respectively. During the fiscal year ended June 30, 2015 , 61,849 stock options were exercised for a number of 34,112 common stock shares, net of shares withheld to satisfy employee tax obligations. During the fiscal year ended June 30, 2014 , 28,877 net common shares were issued in exchange for stock options exercised. Cash received from the exercise of stock options for the fiscal years ended June 30, 2015 , and 2014 , respectively, was $115 thousand , and $201 thousand . The following table summarizes options outstanding and exercisable as of June 30, 2015 : Options outstanding Options exercisable Range of exercise prices Number of shares Weighted average remaining contractual life WAEPS (1) Number of shares Weighted average remaining contractual life WAEPS (1) $6.32 - $8.32 273,747 8.1 years $8.08 81,092 7.2 years $7.98 $8.33 - $9.44 190,622 5.0 years $8.77 186,248 5.0 years $8.78 $9.45 - $11.20 198,436 1.3 years $9.60 198,436 1.3 years $9.60 $11.21 - $14.56 200,779 7.4 years $14.05 44,531 0.4 years $12.80 $14.57 - $19.28 168,750 5.1 years $17.22 168,750 5.1 years $17.22 1,032,334 5.6 years $11.15 679,057 3.9 years $11.29 Aggregate intrinsic value $ — $ — (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, 2015 2014 TBOs PBOs (1) MBOs (2) TBOs PBOs (1) MBOs (2) Number of options 16,875 156,250 49,998 77,493 187,500 187,500 Weighted-average grant date fair value per share $3.73 $7.13 $9.39 $4.79 $4.50 $ 5.52 Expected dividend $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Forfeiture rate 23 % 15 % 15 % — % — % — % Risk free interest rate 1.5% 1.7 % - 1.7% 2.4% 1.3 % 1.5 % - 1.7% 2.8% Expected life (years) 6.0 5.3 - 5.4 3.2 - 3.9 6.0 0.4 - 1.6 2.6 Expected volatility (based on historical price) 57.4% 53.6 % - 54.1% 64.4% 62.1 % 61.7 % - 61.9% 66.6% (1) The terms related to these PBOs were estimated using an average probabilistic weighted method. (2) The Company assumed MBOs will be voluntarily exercised at the midpoint of vesting, and the contractual term. Stock Compensation Expense The Company recorded $891 thousand and $2.0 million of stock compensation expense for the fiscal years ended June 30, 2015 , and 2014 , respectively. The $891 thousand of stock compensation expense for the year ended June 30, 2015 consisted of expense amortization related to prior period awards of $555 thousand , expense amortization related to current period option grants of $708 thousand , and stock awards and forfeitures as described below. Stock based compensation is included under general and administrative expense in the consolidated statements of operations. At June 30, 2015 , there was a total of $0.9 million in unrecognized stock compensation expense related to stock options granted. This cost is expected to be recognized over a weighted-average period of 1.4 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, 2016 , it is expected that an additional 20,624 stock options will vest. Stock Awards In connection with certain executive promotions effective on October 31, 2014, the Board’s Compensation, Nominating and Governance Committee (the “CNG Committee”) established a new 2015 incentive compensation program that included grants of an aggregate of 12,500 shares of restricted stock under the 2012 Stock Incentive Plan to the Company's three senior executives and 6,250 shares of restricted stock under the 2012 Stock Incentive Plan to the Chairman of the Board. Total compensation expense from the issuance of restricted stock to executives for the year ended June 30, 2015 , was $79 thousand . The Company's director 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. On July 1, 2014, the Company issued a total of 12,041 shares of its Common Stock to non-employee directors and one board-observer pursuant to this policy and the 2012 Stock Incentive Plan. Pursuant to the compensation policy, one director elected to apply his annual compensation to the exercise of a portion of his previously awarded and vested options in lieu of receiving a share award, resulting in the issuance of an additional 2,734 shares upon exercise. Total compensation expense from the issuance of non-employee director compensation for the year ended June 30, 2015 , was $264 thousand . Forfeitures During the year ended June 30, 2015 , 238,907 unvested stock options and 17,500 unvested shares of restricted stock that were previously granted were forfeited. The forfeiture of unvested options and unvested restricted stock resulted in the reversal of previously recorded compensation expense of $648 thousand and $67 thousand , respectively, which was recorded as an offset to general and administrative expense during the year ended June 30, 2015 in the accompanying consolidated statement of operations. Cancellations On October 10, 2014 , Magellan entered into an Options and Stock Purchase Agreement (the "Agreement") with William H. Hastings, a former executive officer and director of the Company and a beneficial owner of more than 5% of the Company’s Common Stock as of October 10, 2014 . The Agreement provided for the repurchase by the Company from Mr. Hastings of 31,250 shares of the Company’s Common Stock and options to acquire 189,062 shares of the Company’s Common Stock. The gross proceeds that were paid to Mr. Hastings on October 17, 2014 , pursuant to the Agreement totaled $1.4 million (the "Proceeds") and were subject to applicable tax withholdings. Of the Proceeds, $983 thousand related to the repurchase of the options, which amount was subject to applicable withholding tax withheld from and remitted on behalf of the former executive in the amount of $318 thousand . The Company canceled the 189,062 repurchased options and, pursuant to the terms of the 2012 Stock Incentive Plan, added the unissued shares underlying these unexercised options to the shares available for issuance under the 2012 Stock Incentive Plan. Of the Proceeds, the remaining $462 thousand related to the repurchase of the shares of Common Stock. See Note 11 - Stockholders' Equity for further detail. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Jun. 30, 2015 | |
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. As a result of the reverse stock split on July 10, 2015 , the conversion price was adjusted to reflect the ratio of pre-split common shares outstanding to post-split common shares outstanding multiplied by the Purchase Price, or $9.77586545 per share (the "Adjusted Conversion 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. On August 3, 2015 , via the First Amendment to the Series A Convertible Preferred Stock Purchase Agreement (the "Series A First Amendment"), Magellan and One Stone agreed to amend and extend the standstill provisions of the Series A Purchase Agreement to December 31, 2015 . See Note 18 - Subsequent Events for further information. • 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, 2015 , and 2014 , respectively, the Company recorded preferred stock dividends of $1.7 million and $1.7 million , and accrued dividends in the amount of $0 and $429 thousand related to the Series A Preferred Stock. The preferred stock dividends for the nine months ended June 30, 2015 were paid in kind. Accordingly, the value of these dividends of $ 1.3 million was recorded and added to the preferred stock balance on the Company's balance sheet at June 30, 2015 . For the fiscal year ended June 30, 2014 , the value of accrued dividends paid in kind of $201 thousand and dividends paid in kind of $837 thousand was recorded and added to the preferred stock balance on the Company's balance sheet at June 30, 2014 . 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, 2015 2014 Number of shares issued Amount Number of shares issued Amount (In thousands, except share amounts) Fiscal year opening balance 20,089,436 $ 24,539 19,239,734 $ 23,501 PIK dividend shares issued, for previously accrued dividend — — 164,607 201 Current year PIK dividends shares issued 1,073,261 1,311 685,095 837 Fiscal year closing balance 21,162,697 $ 25,850 20,089,436 $ 24,539 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11 - Stockholders' Equity Reverse Stock Split On July 10, 2015 , the Company filed an amendment to its articles of incorporation to effect a 1 for 8 reverse stock split of its common stock, effective July 10, 2015 . All share and per share amounts relating to the common stock, stock options to purchase common stock, including the respective exercise prices of each such option, and the conversion ratio of the Series A Preferred Stock included in the financial statements and footnotes have been retroactively adjusted to reflect the reduced number of shares resulting from this action. Market conditions tied to stock price targets contained within MBOs were similarly adjusted. The par value and the number of authorized, but unissued, shares remain unchanged following the reverse stock split. No fractional shares will be issued following the reverse stock split and the Company has paid cash in lieu of any fractional shares resulting from the reverse stock split. 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 18,692 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 October 10, 2014 , Magellan repurchased 31,250 shares from William H. Hastings, a former Company executive, pursuant to an Options and Stock Purchase Agreement. See Note 9 - Stock Based Compensation for further details. On July 1, 2014 , upon the vesting of 18,750 shares of restricted stock previously granted to executives of the Company and pursuant to the tax withholding provisions of the Company's restricted stock award agreements, the Company withheld on a cashless basis 5,981 shares to settle withholding taxes. The withheld shares were immediately canceled. 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) 1,158,080 shares of the Company's Common Stock, (ii) a warrant granting Sopak the right to purchase from the Company an additional 543,478 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 1,158,080 shares of Common Stock, resulting in a value per share of $7.944 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, 2015 2014 Number of shares issued Amount Number of shares issued Amount (In thousands, except share amounts) Fiscal year opening balance 1,178,139 $ 9,344 1,176,772 $ 9,333 Shares repurchased from former executive 31,250 462 — — Net shares repurchased for employee tax and option exercise price obligations related to the vesting of restricted stock and the exercise of employee stock options 5,981 104 1,367 11 Cancellation of shares repurchased (5,981 ) (104 ) — — Fiscal year closing balance 1,209,389 $ 9,806 1,178,139 $ 9,344 Retired Warrant The Company formally retired the warrant purchased from Sopak during its fiscal year ended June 30, 2013 , 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. Assumptions used in estimating the fair value of the warrant included: (i) the Common Stock market price on the repurchase date of $7.20 per share; (ii) the warrant exercise price of $9.20 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% . |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | Note 12 - (Loss) Earnings Per Share The following table summarizes the computation of basic and diluted (loss) earnings per share for the fiscal years ended: June 30, 2015 2014 (In thousands, except share and per share amounts) Loss from continuing operations, net of tax $ (43,411 ) $ (10,042 ) Preferred stock dividend (1,740 ) (1,696 ) Net loss from continuing operations, including preferred stock dividends (45,151 ) (11,738 ) Net income from discontinued operations — 25,551 Net loss attributable to non-controlling interest in subsidiary 411 — Net income (loss) attributable to common stockholders $ (44,740 ) $ 13,813 Basic weighted-average shares outstanding 5,710,288 5,671,603 Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) — — Diluted weighted-average common shares outstanding 5,710,288 5,671,603 Basic net (loss) earnings per common share: Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (2) $(7.83) $(2.07) Net income from discontinued operations $0.00 $4.51 Net (loss) income attributable to common stockholders $(7.83) $2.44 Diluted net (loss) earnings per common share Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (2) $(7.83) $(2.07) Net income (loss) from discontinued operations $0.00 $4.51 Net (loss) income attributable to common stockholders $(7.83) $2.44 (1) All diluted earnings per share calculations are dictated by the results from continuing operations; accordingly there were no dilutive effects on earnings per share in the periods presented since all such periods had a net loss from continuing operations. (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 anti-dilutive. 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, 2015 2014 In-the-money stock options 27,673 65,723 Non-vested restricted stock 25,000 56,250 Common shares issuable upon conversion of Series A Preferred Stock 2,644,278 2,510,174 . 2,696,951 2,632,147 |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2015 | |
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 includes our operations 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, 2015 2014 (In thousands) Revenue from NP oil production $ 4,459 $ 7,601 Net income (loss) from continuing operations: NP (1) $ (19,092 ) $ 1,828 MPA (16,404 ) (934 ) MPUK (1,799 ) (2,585 ) Corporate (6,139 ) (8,351 ) Inter-segment eliminations 23 — Consolidated net losses from continuing operations $ (43,411 ) $ (10,042 ) Assets: NP $ 37,130 $ 48,161 MPA 4,593 14,215 MPUK (2) 2,373 7,156 Corporate 79,474 88,249 Inter-segment eliminations (3) (76,870 ) (76,346 ) Consolidated assets $ 46,700 $ 81,435 Expenditures for additions to long lived assets: NP $ 8,795 $ 20,334 MPUK 275 526 Corporate 3 63 Consolidated expenditures for long lived assets $ 9,073 $ 20,923 (1) The downward revision of the contingent consideration payable during the fiscal year ended June 30, 2015 , resulted in $1.9 million of other income associated with our NP segment, refer to Note 7 - Fair Value Measurements . (2) Refer to Note 20 - Oil and Gas Activities (Unaudited) 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, 2015 2014 (In thousands) Depletion, depreciation, amortization, and accretion: NP $ 1,001 $ 977 Corporate 148 146 Consolidated depletion, depreciation, amortization, and accretion $ 1,149 $ 1,123 Lease operating: NP $ 5,089 $ 6,257 Exploration: NP $ 1,079 $ 541 MPA 91 436 MPUK 393 2,507 Consolidated exploration $ 1,563 $ 3,484 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 : Total (In thousands) Amounts payable in fiscal year: 2016 $ 173 2017 177 2018 74 Thereafter — Total $ 424 Rent expense, recorded gross of sublease income in the accompanying consolidated statements of operations, for each of the years ended June 30, 2015 , and 2014 , was $0.3 million and $0.3 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 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 rates 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 - Fair Value Measurements above for information regarding the estimated discounted fair value of the future contingent consideration payable related to the Nautilus PSA. Sopak Collateral Agreement. The Company has estimated that there is the potential for a statutory liability of approximately $1.7 million and $1.6 million as of June 30, 2015 , and 2014 , respectively, related to US Federal tax withholdings and related penalties and interest related to the Collateral Agreement described in Note 11 - Stockholders' Equity . As a result, we have recorded a total liability of $1.7 million and $1.6 million as of June 30, 2015 , and 2014 , 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 $1.7 million and $1.6 million as of June 30, 2015 , and 2014 , respectively, under prepaid and other assets in the accompanying consolidated balance sheets. Celtique Litigation. On March 3, 2015, MPUK received a claim form and particulars of claim that was issued in the High Court of Justice, Queen’s Bench Division, Commercial Court in London, England on February 26, 2015, pursuant to which Celtique Energie Weald Limited ("Celtique") as the claimant seeks, among other things, a declaration that MPUK’s 50% equal co-ownership rights with Celtique in PEDLs 231, 234 (within which license area the Broadford Bridge-1 well site is located), and 243 in the central Weald Basin in the UK have been forfeited to Celtique, and payment of £1.5 million (equivalent to $2.4 million as of June 30, 2015 ) for the outstanding cash calls related to the Broadford Bridge-1 well along with interest on that amount at 5% above base rate until payment (the "Celtique Claim"). On March 24, 2015 Celtique filed for summary judgment on the Celtique Claim. On April 1, 2015, MPUK filed a defense and counterclaim asserting, among other things, that the cash calls by Celtique are not valid due to the failure of Celtique as operator of the PEDLs to comply with the contractual accounting procedures, adhere to an agreed-upon drilling schedule and otherwise properly execute the parties’ development plans, and seeking to recover damages from Celtique as a result of Celtique’s unilateral actions following the purported forfeiture of the PEDL interests. On June 15, 2015, Celtique’s application for summary judgment was heard and dismissed on the basis that MPUK had a real prospect of successfully defending against the Celtique Claim. Celtique was ordered to pay MPUK’s costs of responding to the application, assessed at £60,000 (equivalent to $94 thousand as of June 30, 2015 ), which was paid by Celtique on June 29, 2015 . MPUK believes that it has strong defenses and intends to vigorously contest the Celtique Claim. However, due to the early stage of this matter and the uncertainty and risks inherent in litigation, the Company cannot predict an ultimate outcome. As such, a meaningful estimate of a reasonably possible loss, if any, or range of reasonably possible losses, if any, cannot be made as of the date of these consolidated financial statements. The Company has approximately $953 thousand in capitalized costs related to these two licenses included in the accompanying consolidated balance sheet. Utah CO2 Option. In May 2015, in accordance with an option agreement between Magellan, Utah CO2, and Savoy Energy, LLC ("Savoy"), Utah CO2 exercised the CO 2 purchase option available under the Utah CO2 Option Agreement. Exercise of the CO 2 purchase option allows Utah CO2 to negotiate in good faith and enter into a purchase agreement for CO 2 with Savoy, the key terms of which should be consistent with the terms detailed in the Utah CO2 Option Agreement , which included a fifty year term, an attractive CO 2 price per mcf, the exclusive access to CO 2 volumes recoverable from Farnham Dome for CO 2 -EOR projects in Utah, and no CO 2 purchase obligations for the first three years. NT/P82 Seismic Survey. In June 2015, the Australian Commonwealth-Northern Territory Offshore Petroleum Joint Authority and the National Offshore Petroleum Titles Administrator ("NOPTA") approved a variation in MPA's work program commitments under the NT/P82 permit in the Bonaparte basin. In addition to retaining the requirement for geotechnical studies to be completed on or before May 12, 2015, at an estimated cost of AUD $500 thousand , the new work program commitment replaced the commitment to drill an exploration well on or before May 12, 2016, carrying an estimated cost of AUD $25 million , with the requirement to complete a minimum of 600 km 2 3-D seismic survey on or before May 12, 2016, the cost of which seismic survey is estimated at AUD $16 million . NOPTA also advised that a suspension and extension of the work requirement for the permit years ending May 12, 2015, and 2016, may be considered, and any renewal application will be expected to include plans for drilling of an exploratory well. Petrie Engagement. In June 2015, the Special Committee engaged Petrie Partners, LLC ("Petrie") to act as its financial advisor (the "Petrie Engagement"). Under the terms of the Petrie Engagement, the Company has agreed to pay Petrie certain fees contingent upon the successful closing of certain transactions ranging from $0 to 3% of the value of such transaction, together with reimbursement of expenses. The Petrie Engagement may be terminated by either party with 5 days written notice. Poplar CO 2 -EOR Pilot Bonus . Mi3 Petroleum Engineering ("Mi3") is a Golden, Colorado, based petroleum engineering firm that advises the Company with respect to its CO 2 -EOR activities, including the Company's CO 2 -EOR pilot at Poplar (See Note 15 - Related Party Transactions ). Pursuant to the terms of a master services contract with Mi3, in addition to contracted rates for services performed, certain contingent bonuses may become payable to Mi3. The first of these will become payable upon a decision by the Company to pursue a full-field CO 2 -EOR development at Poplar and is estimated at $365 thousand as of June 30, 2015 . The remainder of the bonuses are based on triggers related to project funding and full-field production rates. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 - Related Party Transactions Davis Graham & Stubbs LLP . Milam Randolph Pharo, a Director of the Company until December 11, 2014, is currently of counsel at Davis Graham & Stubbs LLP (“DGS”), a Denver-based law firm with over 140 attorneys, of which over 65 are partners. Mr. Pharo has held that position since April 2013. Mr. Pharo has a compensation arrangement with DGS such that Mr. Pharo has an interest in the amount of fees paid by the Company to DGS for certain legal services performed by DGS for the Company. During the fiscal years ended June 30, 2015 , and 2014 , the Company recorded $335 thousand and $177 thousand , respectively, of legal fees related to DGS, with respect to which amounts Mr. Pharo had a compensation interest of $0 and less than $2,500 , respectively. 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 $184 thousand and $161 thousand of consulting fees related to Devizes for the fiscal years ended June 30, 2015 , and 2014 , respectively. Key Energy Services. J. Robinson West, the Chairman of the Board of Directors of the Company, also served as a non-employee director on the board of directors for Key Energy Services Inc. ("KES") until May 2014. 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 years ended June 30, 2015 and 2014 , were $0 and $2.2 million , respectively. As of June 30, 2015 and 2014 , there were no unpaid contract fees related to KES. Mervyn Cowie . Mervyn Cowie, a former employee of the Company's MPA subsidiary, currently serves both as a director of MPA and its subsidiaries and as a consultant to MPA. Since December 1, 2014, the recurring monthly fee payable to Mr. Cowie for his consulting services amounts to AUD $5,400 . Mi3 Petroleum Engineering . In association with its purchase of an option to acquire Farnham Dome, the Company established Utah CO2 , a majority owned subsidiary having other non-controlling interest owners, one of which is MI4 Oil and Gas LLC ("MI4"). MI4 is a Colorado limited liability company majority owned by Mi3. Mi3 performs ongoing consulting work for both Utah CO2 and other Magellan entities. During the fiscal year ended June 30, 2015 , the Company recorded $1.1 million of consolidated expense related to fees payable to Mi3. |
Employee Retention and Severanc
Employee Retention and Severance Costs | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Employee Retention and Severance Costs | Note 16 - Employee Retention and Severance Costs The Company is required to record charges for one-time employee severance benefits and other associated costs as incurred. Incentive Agreements with Chief Financial Officer On October 12, 2015 , the Company entered into a series of new incentive compensation agreements with Antoine J. Lafargue, the Company's Chief Financial Officer (the "CFO Incentive Agreements"). The CFO Incentive Agreements include i) amendments to the provisions for severance payments available to the CFO under his existing employment agreement dated October 31, 2014 (pursuant to an amendment of such employment agreement), to include provisions for the payment of up to two years' salary as severance in the event that the CFO’s employment with the Company is terminated under certain circumstances within a period ending ten months after the date on which a qualifying transaction (as generally defined below) occurs, capped at $600 thousand ; ii) a restricted stock award agreement whereby a restricted stock grant was made to the CFO on October 12, 2015 totaling 62,500 shares of common stock that are to vest immediately prior to the completion of a qualifying transaction; iii) a potential cash award pursuant to a transaction incentive agreement, which cash award is contingent upon the completion of a qualifying transaction and would range from $0 to $1 million based on the market value of the Company's common stock reflected in the qualifying transaction, with the amount of cash award to be equal to $2,750 for each one cent of market value per share of the Company’s common stock reflected in the qualifying transaction above a minimum market value threshold of $1.60 per share; iv) a phantom stock award, also pursuant to the transaction incentive agreement, with payment contingent upon completion of a qualifying transaction and to be based on the value of 62,500 notional shares; and v) an override bonus agreement which provides for a potential bonus outside of the Company’s 2012 Omnibus Incentive Compensation Plan that would double the amounts payable under the awards available under ii, iii, and iv, above, in certain circumstances. For purposes of the CFO Incentive Agreements, a qualifying transaction is generally defined to mean an acquisition of more than 50% of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, or the sale or other disposition of greater than 95% of the value of the gross assets of the Company, in either case occurring prior to December 31, 2017 . No accrual has been made in the accompanying consolidated financial statements for the CFO Incentive Agreements as amounts were contingent on the occurrence of future events and service. Employee Retention Cash Bonus Plan On June 5, 2015 , the Compensation, Nominating and Governance Committee of the Board of Directors of the Company and the Board of Directors of the Company approved a cash bonus plan for the Company's non-executive officer employees for the purpose of retention of certain key accounting, human resource, and administrative employees through certain key milestone events (the "Employee Retention Cash Bonus Plan"). The terms of the Employee Retention Cash Bonus Plan specify payment of retention bonuses for such employees upon the achievement of the milestones, which are i) the filing of the Company's annual report on Form 10-K for the year ended June 30, 2015 , and ii) the completion of a strategic transaction. The maximum bonus payable to the employees under each of the milestones is as follows: i) $168 thousand , and ii) $286 thousand , respectively. No accrual has been made in the accompanying consolidated financial statements for the Employee Retention Cash Bonus Plan as amounts were contingent on the occurrence of future events and service. Severance and Termination Benefit Payments On August 31, 2014 , the Company provided a notice of termination to the only remaining employee of its MPA subsidiary. As a result, during the fiscal year ended June 30, 2015 , the Company expensed and paid total employee-related severance costs of $475 thousand . 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. 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, $418 thousand of which were paid during the fiscal year ended June 30, 2014 . 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, 2015 2014 Severance - Termination Benefits Severance - Discontinued Operations Severance - Termination Benefits (In thousands) Fiscal year beginning balance $ — $ — $ 418 Charges to general and administrative expense 475 — — Charges to loss from discontinued operations, net of tax — 1,210 — Cash payments (475 ) (1,210 ) (418 ) Fiscal year closing balance $ — $ — $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2015 | |
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 (loss) income, net of tax, for the fiscal year ended: June 30, 2015 Foreign currency translation Unrealized investment holding loss Total (In thousands) Fiscal year opening balance $ 6,144 $ (8,153 ) $ (2,009 ) Changes in comprehensive (loss) income: Other comprehensive (loss) income before reclassification (2,141 ) (6,294 ) (8,435 ) Amounts reclassified from other comprehensive loss (1) 659 15,087 15,746 Net current period other comprehensive loss (1,482 ) 8,793 7,311 Fiscal year ended June 30, 2015 $ 4,662 $ 640 $ 5,302 (1) Reclassification consists of foreign currency translation loss on intercompany account balances of $659 thousand to earnings upon reversal of permanent investment in foreign subsidiaries, and impairment loss on securities available-for-sale of $15.1 million to earnings due to determination as other than temporary. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18 - Subsequent Events Reverse Stock Split. On July 10, 2015 , pursuant to the Company's definitive proxy statement filed on June 8, 2015 , the Company held a Special Meeting of Stockholders to approve an amendment to its Restated Certificate of Incorporation to effect a reverse stock split of its common stock at a ratio to be determined by the Board of Directors within a specific range set forth in the proxy statement, without reducing the number of authorized shares. The Company's shareholders approved the proposed amendment to the Restated Certificate of Incorporation, and the Board of Directors selected a reverse split ratio of one-for-eight (1:8). As a result of the reverse stock split, as of the close of business on July 10, 2015 , each eight shares of common stock were converted into one share of common stock with any fractional shares being settled in cash. Immediately preceding the reverse stock split there were 55,313,647 shares of common stock issued, including 9,675,114 treasury shares. The number of shares of Series A Preferred Stock did not change as a result of the split; however, following the reverse stock split the conversion price was adjusted to reflect the split from $1.22149381 to $9.77586545 . After the reverse stock split there were 6,911,921 shares of common stock issued, including 1,209,389 treasury shares. Stock Based Compensation. On July 1, 2015 , upon the vesting of 12,500 shares of restricted stock previously granted to executives of the Company and pursuant to the tax withholding provisions of the Company's restricted stock award agreements, the Company withheld on a cashless basis 2,822 shares to settle withholding taxes. The withheld shares were immediately cancelled. On July 3, 2015 , the Special Committee determined that the directors' annual stock award under the compensation policy for non-employee directors and the 2012 Stock Incentive Plan would be deferred and revisited in a few months after the strategic alternative review process has advanced further and liquidity issues have been addressed. On September 30, 2015 , 33,333 stock options expired without exercise. Based on the activity related to our outstanding stock options and restricted stock after June 30, 2015 , as of October 9, 2015 , the Company had 202,786 shares, including forfeited shares, available for future issuance under the 2012 Stock Incentive Plan. Partial Sale of Central Investment . Beginning in July 2015, the Company began selling some of its 39.5 million shares of Central on the open market as a source of liquidity. As of October 9, 2015 , the Company has sold shares of Central in the open market and generated approximately AUD $1.3 million of proceeds. As of October 9, 2015 , the Company continues to own approximately 27.4 million shares of Central, which at the share price as of October 9, 2015 of AUD $0.155 and foreign exchange rate of 0.72 , represented approximately $3.1 million of potential liquidity. Engagement of RFC Ambrian as financial advisor for farmout of NT/P82. In July 2015 , the Company engaged RFC Ambrian as its financial advisor to run a formal bid process for the farm-out of its 100% operating interest in the NT/P82 permit in the Bonaparte basin, offshore Australia, to fund future exploration costs and recover back-costs incurred. The terms of the engagement include cash payments of $20 thousand and $80 thousand for the two initial stages of the engagement through a written offer, and a success fee upon completion of a legally binding agreement ranging from $250 thousand to 5% of the farm-out value of the agreement to the Company. One Stone Standstill Extended to December 31, 2015. On August 3, 2015 , the Company and One Stone agreed to amend and extend the standstill provisions of the Series A Purchase Agreement to December 31, 2015 via the Series A First Amendment. In addition to extending the terms of the prior standstill, One Stone agreed to be prohibited from i) depositing any securities of the Company in trust or subjecting them to any voting agreement or arrangement and ii) requesting the Company to modify or waive any provision of the standstill covenants. Certain definitions were also updated in the Series A First Amendment. Celtique Litigation. In August 2015, pursuant to the terms of the PEDLs and as a result of the litigation initiated by Celtique discussed in Note 14 - Commitments and Contingencies - Celtique Litigation, the Company paid its share of license fees related to the three Central Weald licenses in the amount of £50,000 . Incentive Agreements with Chief Financial Officer. On October 12, 2015 , the Company entered into a series of new incentive agreements with its Chief Financial Officer. For further information, please refer to Note 16 - Employee Retention and Severance Costs . |
Supplemental Oil and Gas Inform
Supplemental Oil and Gas Information (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 , and 2014 , 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 years ended June 30, 2015 and 2014 . Reserve estimates were audited by the Company's independent petroleum engineering firm, Allen & Crouch Petroleum Engineers ("A&C") for each of the fiscal years presented. 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 economic conditions change and new information becomes available. United States Australia (1) Total Oil (Mbbls) Gas (Bcf) Oil (Mbbls) Gas (Bcf) Proved Reserves: Fiscal year ended June 30, 2013 7,368.6 11.4 7,368.6 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 5,735.7 — 5,735.7 — Revision of previous estimates (3,417.1 ) — (3,417.1 ) — Production (79.0 ) — (79.0 ) — Fiscal year ended June 30, 2015 2,239.6 — 2,239.6 — Proved Developed Reserves: Fiscal year ended June 30, 2014 2,494.6 — 2,494.6 — Fiscal year ended June 30, 2015 2,239.6 — 2,239.6 — Proved Undeveloped Reserves: Fiscal year ended June 30, 2014 3,241.1 — 3,241.1 — Fiscal year ended June 30, 2015 — — — — (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 downward changes in previous estimates attributable to new information gained primarily from development activity, production history, and changes to the economic conditions and the financial condition of the Company at the time of each estimate. During the year ended June 30, 2015, there was a 3,417 Mbbls downward revision of estimated proved reserves. The majority of the revision relates to the removal of 3,083 Mbbls of proved undeveloped reserves from the classification of proved reserves due to the uncertainty surrounding the Company's ability to continue as a going concern and to obtain the necessary capital to develop the PUD locations. During fiscal 2015 , the Company did not convert any proved undeveloped reserves to proved developed reserves. The proved undeveloped reserves as of June 30, 2014, which were attributable to a new 9 -well drilling program at Poplar are in the immediate vicinity of the five wells that have been drilled for the CO 2 -EOR pilot project. 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, 2015 2014 Oil (per Bbl) $58.93 $86.11 Gas (per Mcf) NA NA 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 for the United States cost center only: Year Ended June 30, 2015 2014 (In thousands) Future cash inflows $ 131,979 $ 493,901 Future production costs (85,372 ) (226,464 ) Future development costs (7,021 ) (23,594 ) Future income tax expense — (73,820 ) Future net cash flows 39,586 170,023 10% annual discount (22,569 ) (82,980 ) Standardized measures of discounted future net cash flows $ 17,017 $ 87,043 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, 2013 $ 97,391 $ 10,285 $ 107,676 Net change in prices and production costs (10,222 ) — (10,222 ) Revisions of previous quantity estimates (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 Net change in prices and production costs (1) (71,406 ) — (71,406 ) Revisions of previous quantity estimates (2) (54,415 ) — (54,415 ) Divestiture of reserves — — — Changes in estimated future development costs 9,071 — 9,071 Sales and transfers of oil and gas produced (440 ) — (440 ) Previously estimated development cost incurred during the period 7,749 — 7,749 Accretion of discount 8,853 — 8,853 Net change in income taxes (3) 32,188 — 32,188 Net change in timing and other (1,626 ) — (1,626 ) Fiscal year ended June 30, 2015 $ 17,017 $ — $ 17,017 (1) For fiscal year 2015, there was a $71.4 million downward revision in reserve value due to the net change in prices and production costs. This change was the result of the steep decline in the WTI price, the benchmark oil price for sale of the Company's crude oil. (2) The downward revision of $54.4 million relates to the elimination of PUDs of 3,241 Mbbls from the classification as proved reserves and is discussed in greater detail above under the heading "Analysis of Changes in Proved Reserves." (3) The increase in cash flows from the net change in income taxes represents the decrease in future income taxes as a result of the elimination of cash flows from PUD reserves. |
Oil and Gas Activities (Unaudit
Oil and Gas Activities (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 Proved $ — $ — $ — $ — Unproved — — — — Exploration Costs 1,079 91 393 1,563 Development Costs 7,749 — 274 8,023 Total, including asset retirement obligation $ 8,828 $ 91 $ 667 $ 9,586 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 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, 2015 Fiscal year beginning balance $ 19,955 $ — $ 1,890 $ 21,845 Additions to capitalized costs 8,047 — 274 8,321 Assets sold or held for sale — — (680 ) (680 ) Reclassified to producing properties (1) (8,973 ) — — (8,973 ) Charged to expense — — (20 ) (20 ) Exchange adjustment — — (124 ) (124 ) Fiscal year closing balance $ 19,029 $ — $ 1,340 $ 20,369 Fiscal year ended June 30, 2014 Fiscal year beginning balance $ 496 $ 3,976 $ 1,762 $ 6,234 Additions to capitalized costs (2) 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 $ 19,955 $ — $ 1,890 $ 21,845 (1) The Company reclassified the capitalized costs for two of the five CO 2 -enhanced oil recovery pilot wells from wells in progress to producing properties during the forth quarter of fiscal 2015. (2) The Company began implementing a CO 2 -enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014. In the United Kingdom, during the third quarter of fiscal year 2015, the Company allowed a petroleum license to expire and recorded exploration expense of $20 thousand . During the fourth quarter of fiscal year 2015, the Company sold its interest in a license with a remaining capitalized cost of $0.7 million . 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. At June 30, 2015 , 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 (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 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 Quarter Second Quarter Third Quarter Fourth Quarter June 30, (In thousands, except per share data) Fiscal year ended June 30, 2015 Revenue from oil production (1) $ 1,590 $ 1,265 $ 688 $ 916 $ 4,459 Total operating expenses (2) $ 4,280 $ 4,153 $ 4,863 $ 21,459 $ 34,755 Continuing operations: Loss from continuing operations attributable to Magellan Petroleum Corporation (3)(4) $ (2,627 ) $ (2,715 ) $ (2,115 ) $ (35,543 ) $ (43,000 ) Net loss per basic common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Net loss per diluted common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Attributable to common stockholders: Net loss $ (3,057 ) $ (3,145 ) $ (2,552 ) $ (35,986 ) $ (44,740 ) Net loss per basic common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Net loss per diluted common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) (1) The benchmark oil price, WTI declined significantly in the third quarter. (2) During the fourth quarter, the company recorded an impairment of its proved oil and gas properties of $17.4 million . (3) During the third quarter, a downward revision in the contingent consideration payable resulted in other income of $1.9 million . (4) Loss from continuing operations increased in the fourth quarter due to the impairment of proved oil and gas properties mentioned previously, and an other-than-temporary impairment of $14.9 million related to the Company's investment in Central. First Quarter Second Quarter Third Quarter Fourth Quarter June 30, 2014 (In thousands, except per share data) Fiscal year ended June 30, 2014 Revenue from oil production $ 2,134 $ 1,633 $ 1,907 $ 1,927 $ 7,601 Total operating expenses $ 5,737 $ 4,193 $ 4,927 $ 5,092 $ 19,949 Continuing operations: Loss from continuing operations (1) $ (3,681 ) $ (2,610 ) $ (3,072 ) $ (679 ) $ (10,042 ) Net loss per basic common share outstanding $(0.72) $(0.53) $(0.62) $(0.20) $(2.07) Net loss per diluted common share outstanding $(0.72) $(0.53) $(0.62) $(0.20) $(2.07) Attributable to common stockholders: Net (loss) income (2) $ (5,250 ) $ (4,533 ) $ 24,089 $ (493 ) $ 13,813 Net (loss) income per basic common share outstanding $(0.93) $(0.80) $4.25 $(0.08) $2.44 Net (loss) income per diluted common share outstanding $(0.93) $(0.80) $4.25 $(0.08) $2.44 (1) A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $1.9 million of other income associated with our NP segment, refer to Note 7 - Fair Value Measurements for further details. (2) During the third quarter the Company sold its Palm Valley and Dingo gas fields to Central (see Note 2 - Sale of Amadeus Basin Assets ). 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, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and 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, including stock-based compensation expense, 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 loss, a separate component of stockholders' equity. A component of accumulated other comprehensive loss 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. During the year ended June 30, 2015 , the Company made a determination that it was no longer permanently invested in its foreign subsidiaries because (i) the Company has begun an effort to repay its intercompany balances through the repatriation of cash from these subsidiaries and (ii) the Company is increasingly focusing on its US operations. As such, the Company recorded on its statement of operations an expense reclassification from accumulated other comprehensive loss arising from foreign currency exchange losses on its intercompany account balances. |
Cash and Cash Equivalents | 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. |
Concentration of Credit Risk | The Company's financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents. 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 loss in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, the Company performs 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. During the year, the Company determined that the value of its investment in Central had suffered an other-than temporary impairment. As such, the unrealized loss was reclassified from other comprehensive income to the consolidated statement of operations. |
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 and Impairment of Long-Lived Assets | 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 non-commercial. If an exploratory well is deemed to be non-commercial, the well costs are charged to exploration expense as dry hole costs. Exploration expenses include dry hole costs, geological, and geophysical expenses. Non-commercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses. The cost of CO 2 injection is capitalized until a production response is seen as a result of the injection and it is determined that the well has found proved reserves. After oil production from the well begins, CO 2 injection costs are expensed as incurred. 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 estimated proceeds from salvaging equipment. 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. Impairment of Long-Lived Assets The Company reviews the carrying amount of its oil and gas properties and unproved leaseholds for impairment annually or whenever events or changes in circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected future cash flows of its oil and gas properties and compares such 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. The Company undertook such a review during the year ended June 30, 2015 , and as a result of the recent decline in oil prices, the Company concluded that its proved oil and gas properties were impaired and recorded an impairment loss of $17.4 million in the accompanying consolidated statement of operations. |
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, 2015 , management concluded that as a result of the decline in reserve value, principally due to the decline in commodity prices, and a downward revision in reserve quantities as the result of the exclusion of PUD reserves from the Company's reserve estimates, goodwill related to Nautilus Poplar had been impaired and recorded an impairment expense of $0.7 million . There was no impairment of goodwill at June 30, 2014. The qualitative factors used in our assessment include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance. The quantitative analysis performed included a review of the June 30, 2015 reserve estimates using forward commodity prices and an estimate of the differential less the liabilities for NP, and comparing the result of the analysis to the recorded carrying value of the net assets. The analysis indicated that the carrying value of the net assets exceeded the calculated value of the reserves net of liabilities, and therefore, an impairment had occurred. |
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 collection of the revenue is probable. |
Major Customers | Major Customers The Company's consolidated oil production revenue is derived from its NP segment and was generated from two customers for the year ended June 30, 2015 , and a single customer for the year ended June 30, 2014 . |
Share Based Compensation | Stock Based Compensation Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options ("TBOs") are expensed on a straight-line basis over the vesting period. Market based options ("MBOs") are expensed on a straight-line basis over the derived service period, even if the market condition is not achieved. Performance based options ("PBOs") are amortized on a straight-line basis between the date upon which the achievement of the relevant performance condition is deemed probable and the date 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 MBOs, 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, 2015 , or 2014 , 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, 2015 , 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, 2015 , 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 - Segment Information . |
(Loss) Earnings per Common Share | (Loss) Earnings 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 effects of potentially 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 potentially dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potentially dilutive impact of the shares of Series A 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 anti-dilutive. 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 Preferred Stock in the calculation of diluted earnings (loss) per share during the fiscal year ended June 30, 2015 , and 2014 , respectively, as their effect would have been anti-dilutive. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive (loss) income is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive (loss) income. Other comprehensive (loss) income is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net (loss) income. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-15, which amends presentation and disclosure requirements outlined in ASU 2015-03 (discussed below) by clarifying guidance for debt issuance costs related to line of credit arrangements, providing that the SEC would not object to presentation of debt issuance costs related to a line of credit arrangement as an asset, and amortizing them ratably over the term of the line of credit arrangement. The Company does not expect adoption of ASU 2015-15 to have a material effect on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU 2014-09 (discussed below) by one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. In July 2015, the FASB issued ASU No. 2015-11, which requires that inventory that is measured using first-in, first-out or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard will be effective for the first interim period within the Company's fiscal year beginning after December 15, 2016 and is required to be adopted prospectively; early adoption is permitted. The Company does not expect the adoption of this accounting standard to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and early adoption is permitted. At June 30, 2015, adoption of this standard would have resulted in a reclassification from other long term assets to note payable of $50 thousand on the Company's accompanying consolidated balance sheet. In August 2014, the FASB issued ASU No. 2014-15, which provides guidance on management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, and annual and interim periods thereafter. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, which requires a reporting entity to treat a performance target included within a share-based payment award that affects vesting and that could be achieved after the requisite service period as a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The Company has chosen to early adopt this standard retrospectively to July 1, 2013 , which adoption did not impact the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 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, as amended by ASU 2015-14, above, will be effective for us in the first quarter of our fiscal year 2019; unless early adopted in the prior fiscal year as permitted under the amendment. The Company is currently evaluating the timing of adoption, which transition approach to use and the impact of the adoption of this standard on its consolidated financial statements. In February 2013, the FASB issued 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. 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, 2015 . |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill | Changes in goodwill can be summarized as follows for the years ended: June 30, 2015 2014 (In thousands) Fiscal year opening balance $ 1,174 $ 2,174 Sale of Amadeus Basin assets (see Note 3) — (1,000 ) Impairment of Nautilus Poplar goodwill $ (674 ) Fiscal year closing balance $ 500 $ 1,174 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (In thousands) Revenue $ — $ 814 Loss from discontinued operations, net of tax $ — $ (4,461 ) As of June 30, 2014, the gain on disposal of discontinued operations can be summarized as follows: June 30, 2014 (In thousands) Assets and liabilities sold: Property and equipment, net $ (10,100 ) Deferred income taxes (7,217 ) Goodwill allocated to the disposal group (1,000 ) Asset retirement obligations 4,457 Purchase price adjustments 743 Total assets and liabilities of discontinued operations (13,117 ) 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 Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Equity securities $ 19,147 $ — $ (14,917 ) $ 4,230 June 30, 2014 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Equity securities $ 19,339 $ — $ (7,404 ) $ 11,935 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of annual principal payments | Scheduled annual principal payments for the Term Loan are as follows: Total (In thousands) Payable in fiscal year: 2016 $ — 2017 1,375 2018 1,375 2019 1,375 2020 1,375 Total $ 5,500 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (In thousands) Fiscal year opening balance $ 2,873 $ 6,879 Liabilities assumed — 7 Accretion expense 171 367 Sale of assets (1) (346 ) (4,457 ) Revision to estimate — — Effect of exchange rate changes (51 ) 77 Fiscal year closing balance 2,647 2,873 Less current asset retirement obligations — 397 Long term asset retirement obligations $ 2,647 $ 2,476 (1) In fiscal 2015 the Company sold its 40% interest in PEDL 126, the exploration license that contains the Markwells Wood-1 wellbore. By selling the license and the wellbore, the Company was able to eliminate its current asset retirement obligation related to the wellbore. In fiscal 2014, the Company sold its Amadeus Basin assets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Securities available-for-sale $ 4,230 $ — $ — $ 4,230 Liabilities: Contingent consideration payable $ — $ — $ — $ — 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 |
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 2015 2014 Contingent consideration payable Discounted cash flow model Discount rate N/A 8.0% First production payout N/A June 30, 2015 Second production payout N/A N/A |
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, 2015 2014 (In thousands) Fiscal year beginning balance $ 1,852 $ 3,940 Accretion expense 36 315 Revision to estimate (1,888 ) (2,403 ) Fiscal year closing balance $ — $ 1,852 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 (In thousands) United States $ (24,798 ) $ 4,262 Australia (16,403 ) (11,563 ) United Kingdom (1,799 ) (2,741 ) Net loss from continuing operations attributable to Magellan Petroleum Corporation $ (43,000 ) $ (10,042 ) |
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, 2015 2014 (In thousands) Tax provision computed per federal statutory rate $ (14,620 ) $ (3,414 ) State taxes, net of federal benefit (1,005 ) 549 Foreign rate differential 908 818 Non taxable Australian revenue — (3,144 ) Goodwill write off — (58 ) APB 23 adjustment 9,632 — Change in valuation allowance 2,846 3,476 Taxable dividends from subsidiaries, net of foreign tax credits — 3,586 Foreign tax credit adjustment (310 ) (761 ) Capital loss adjustment 1,493 73 Impact of rate change 189 291 Foreign currency translation differential 1,255 (434 ) Stock based compensation forfeitures 545 Contingent consideration payable write off (630 ) (710 ) Other items (303 ) (272 ) 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, 2015 2014 (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 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, 2015 2014 (In thousands) Deferred tax liabilities: Land, buildings and equipment $ — $ (4,030 ) Foreign investments (7,451 ) Other items (128 ) (157 ) Total deferred tax liabilities (7,579 ) (4,187 ) Deferred tax assets: Acquisition and development costs 365 — Asset retirement obligations 990 923 Net operating losses, capital losses, and foreign tax credit carry forwards 18,521 13,891 United Kingdom exploration costs and net operating losses 3,639 3,851 Investments 100 2,378 Stock option compensation 2,184 2,839 Australian capitalized legal costs 116 143 Other items 141 141 Total deferred tax asset 26,056 24,166 Valuation allowance (18,477 ) (19,979 ) Net long term deferred tax asset $ — $ — |
Summary of Jurisdictions Subject to Income Tax Examination | As of June 30, 2015 , 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 2012 - 2014 Colorado 2012 - 2014 Maine 2012 - 2014 Montana 2010 - 2014 Australia 2011 - 2014 United Kingdom 2011 - 2014 |
Summary of Operating Loss and Tax Credit Carryforwards | At June 30, 2015 , 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: Federal Net Operating Losses State Net Operating Losses Federal Foreign Tax Credit (In thousands) Expires: 2017 $ — $ 8 $ 310 2018 — 3,103 — 2019 — 559 1,411 2020 — 2,212 624 2021 — 27 1,443 2022 — 13,309 3,655 2023 and thereafter 13,709 — 1,668 Total $ 13,709 $ 19,218 $ 9,111 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | As of June 30, 2015 , a total of 332,028 MBOs and PBOs had not vested, and 169,453 shares, including forfeited or canceled options, remained available for fut |
Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes options outstanding and exercisable as of June 30, 2015 : Options outstanding Options exercisable Range of exercise prices Number of shares Weighted average remaining contractual life WAEPS (1) Number of shares Weighted average remaining contractual life WAEPS (1) $6.32 - $8.32 273,747 8.1 years $8.08 81,092 7.2 years $7.98 $8.33 - $9.44 190,622 5.0 years $8.77 186,248 5.0 years $8.78 $9.45 - $11.20 198,436 1.3 years $9.60 198,436 1.3 years $9.60 $11.21 - $14.56 200,779 7.4 years $14.05 44,531 0.4 years $12.80 $14.57 - $19.28 168,750 5.1 years $17.22 168,750 5.1 years $17.22 1,032,334 5.6 years $11.15 679,057 3.9 years $11.29 Aggregate intrinsic value $ — $ — (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, 2015 2014 TBOs PBOs (1) MBOs (2) TBOs PBOs (1) MBOs (2) Number of options 16,875 156,250 49,998 77,493 187,500 187,500 Weighted-average grant date fair value per share $3.73 $7.13 $9.39 $4.79 $4.50 $ 5.52 Expected dividend $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Forfeiture rate 23 % 15 % 15 % — % — % — % Risk free interest rate 1.5% 1.7 % - 1.7% 2.4% 1.3 % 1.5 % - 1.7% 2.8% Expected life (years) 6.0 5.3 - 5.4 3.2 - 3.9 6.0 0.4 - 1.6 2.6 Expected volatility (based on historical price) 57.4% 53.6 % - 54.1% 64.4% 62.1 % 61.7 % - 61.9% 66.6% (1) The terms related to these PBOs were estimated using an average probabilistic weighted method. (2) The Company assumed MBOs will be voluntarily exercised at the midpoint of vesting, and the contractual term. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Preferred Stock Activity | The following table summarizes the Series A Preferred Stock activity for the fiscal years ended: June 30, 2015 2014 Number of shares issued Amount Number of shares issued Amount (In thousands, except share amounts) Fiscal year opening balance 20,089,436 $ 24,539 19,239,734 $ 23,501 PIK dividend shares issued, for previously accrued dividend — — 164,607 201 Current year PIK dividends shares issued 1,073,261 1,311 685,095 837 Fiscal year closing balance 21,162,697 $ 25,850 20,089,436 $ 24,539 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 Number of shares issued Amount Number of shares issued Amount (In thousands, except share amounts) Fiscal year opening balance 1,178,139 $ 9,344 1,176,772 $ 9,333 Shares repurchased from former executive 31,250 462 — — Net shares repurchased for employee tax and option exercise price obligations related to the vesting of restricted stock and the exercise of employee stock options 5,981 104 1,367 11 Cancellation of shares repurchased (5,981 ) (104 ) — — Fiscal year closing balance 1,209,389 $ 9,806 1,178,139 $ 9,344 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of (Loss) Earnings Per Share, Basic and Diluted | The following table summarizes the computation of basic and diluted (loss) earnings per share for the fiscal years ended: June 30, 2015 2014 (In thousands, except share and per share amounts) Loss from continuing operations, net of tax $ (43,411 ) $ (10,042 ) Preferred stock dividend (1,740 ) (1,696 ) Net loss from continuing operations, including preferred stock dividends (45,151 ) (11,738 ) Net income from discontinued operations — 25,551 Net loss attributable to non-controlling interest in subsidiary 411 — Net income (loss) attributable to common stockholders $ (44,740 ) $ 13,813 Basic weighted-average shares outstanding 5,710,288 5,671,603 Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) — — Diluted weighted-average common shares outstanding 5,710,288 5,671,603 Basic net (loss) earnings per common share: Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (2) $(7.83) $(2.07) Net income from discontinued operations $0.00 $4.51 Net (loss) income attributable to common stockholders $(7.83) $2.44 Diluted net (loss) earnings per common share Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (2) $(7.83) $(2.07) Net income (loss) from discontinued operations $0.00 $4.51 Net (loss) income attributable to common stockholders $(7.83) $2.44 (1) All diluted earnings per share calculations are dictated by the results from continuing operations; accordingly there were no dilutive effects on earnings per share in the periods presented since all such periods had a net loss from continuing operations. (2) Loss from continuing operations is reduced by the contractual amount of Preferred stock dividends that must be expensed for the current period. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | 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, 2015 2014 In-the-money stock options 27,673 65,723 Non-vested restricted stock 25,000 56,250 Common shares issuable upon conversion of Series A Preferred Stock 2,644,278 2,510,174 . 2,696,951 2,632,147 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents segment information for the fiscal years ended: June 30, 2015 2014 (In thousands) Revenue from NP oil production $ 4,459 $ 7,601 Net income (loss) from continuing operations: NP (1) $ (19,092 ) $ 1,828 MPA (16,404 ) (934 ) MPUK (1,799 ) (2,585 ) Corporate (6,139 ) (8,351 ) Inter-segment eliminations 23 — Consolidated net losses from continuing operations $ (43,411 ) $ (10,042 ) Assets: NP $ 37,130 $ 48,161 MPA 4,593 14,215 MPUK (2) 2,373 7,156 Corporate 79,474 88,249 Inter-segment eliminations (3) (76,870 ) (76,346 ) Consolidated assets $ 46,700 $ 81,435 Expenditures for additions to long lived assets: NP $ 8,795 $ 20,334 MPUK 275 526 Corporate 3 63 Consolidated expenditures for long lived assets $ 9,073 $ 20,923 (1) The downward revision of the contingent consideration payable during the fiscal year ended June 30, 2015 , resulted in $1.9 million of other income associated with our NP segment, refer to Note 7 - Fair Value Measurements . (2) Refer to Note 20 - Oil and Gas Activities (Unaudited) 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, 2015 2014 (In thousands) Depletion, depreciation, amortization, and accretion: NP $ 1,001 $ 977 Corporate 148 146 Consolidated depletion, depreciation, amortization, and accretion $ 1,149 $ 1,123 Lease operating: NP $ 5,089 $ 6,257 Exploration: NP $ 1,079 $ 541 MPA 91 436 MPUK 393 2,507 Consolidated exploration $ 1,563 $ 3,484 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 : Total (In thousands) Amounts payable in fiscal year: 2016 $ 173 2017 177 2018 74 Thereafter — Total $ 424 |
Employee Retention and Severa44
Employee Retention and Severance Costs (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 Severance - Termination Benefits Severance - Discontinued Operations Severance - Termination Benefits (In thousands) Fiscal year beginning balance $ — $ — $ 418 Charges to general and administrative expense 475 — — Charges to loss from discontinued operations, net of tax — 1,210 — Cash payments (475 ) (1,210 ) (418 ) Fiscal year closing balance $ — $ — $ — |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents the changes in components of accumulated other comprehensive (loss) income, net of tax, for the fiscal year ended: June 30, 2015 Foreign currency translation Unrealized investment holding loss Total (In thousands) Fiscal year opening balance $ 6,144 $ (8,153 ) $ (2,009 ) Changes in comprehensive (loss) income: Other comprehensive (loss) income before reclassification (2,141 ) (6,294 ) (8,435 ) Amounts reclassified from other comprehensive loss (1) 659 15,087 15,746 Net current period other comprehensive loss (1,482 ) 8,793 7,311 Fiscal year ended June 30, 2015 $ 4,662 $ 640 $ 5,302 (1) Reclassification consists of foreign currency translation loss on intercompany account balances of $659 thousand to earnings upon reversal of permanent investment in foreign subsidiaries, and impairment loss on securities available-for-sale of $15.1 million to earnings due to determination as other than temporary. |
Supplemental Oil and Gas Info46
Supplemental Oil and Gas Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 economic conditions change and new information becomes available. United States Australia (1) Total Oil (Mbbls) Gas (Bcf) Oil (Mbbls) Gas (Bcf) Proved Reserves: Fiscal year ended June 30, 2013 7,368.6 11.4 7,368.6 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 5,735.7 — 5,735.7 — Revision of previous estimates (3,417.1 ) — (3,417.1 ) — Production (79.0 ) — (79.0 ) — Fiscal year ended June 30, 2015 2,239.6 — 2,239.6 — Proved Developed Reserves: Fiscal year ended June 30, 2014 2,494.6 — 2,494.6 — Fiscal year ended June 30, 2015 2,239.6 — 2,239.6 — Proved Undeveloped Reserves: Fiscal year ended June 30, 2014 3,241.1 — 3,241.1 — Fiscal year ended June 30, 2015 — — — — (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, 2015 2014 Oil (per Bbl) $58.93 $86.11 Gas (per Mcf) NA NA |
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 for the United States cost center only: Year Ended June 30, 2015 2014 (In thousands) Future cash inflows $ 131,979 $ 493,901 Future production costs (85,372 ) (226,464 ) Future development costs (7,021 ) (23,594 ) Future income tax expense — (73,820 ) Future net cash flows 39,586 170,023 10% annual discount (22,569 ) (82,980 ) Standardized measures of discounted future net cash flows $ 17,017 $ 87,043 |
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, 2013 $ 97,391 $ 10,285 $ 107,676 Net change in prices and production costs (10,222 ) — (10,222 ) Revisions of previous quantity estimates (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 Net change in prices and production costs (1) (71,406 ) — (71,406 ) Revisions of previous quantity estimates (2) (54,415 ) — (54,415 ) Divestiture of reserves — — — Changes in estimated future development costs 9,071 — 9,071 Sales and transfers of oil and gas produced (440 ) — (440 ) Previously estimated development cost incurred during the period 7,749 — 7,749 Accretion of discount 8,853 — 8,853 Net change in income taxes (3) 32,188 — 32,188 Net change in timing and other (1,626 ) — (1,626 ) Fiscal year ended June 30, 2015 $ 17,017 $ — $ 17,017 (1) For fiscal year 2015, there was a $71.4 million downward revision in reserve value due to the net change in prices and production costs. This change was the result of the steep decline in the WTI price, the benchmark oil price for sale of the Company's crude oil. (2) The downward revision of $54.4 million relates to the elimination of PUDs of 3,241 Mbbls from the classification as proved reserves and is discussed in greater detail above under the heading "Analysis of Changes in Proved Reserves." (3) The increase in cash flows from the net change in income taxes represents the decrease in future income taxes as a result of the elimination of cash flows from PUD reserves. |
Oil and Gas Activities (Unaud47
Oil and Gas Activities (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [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, 2015 Proved $ — $ — $ — $ — Unproved — — — — Exploration Costs 1,079 91 393 1,563 Development Costs 7,749 — 274 8,023 Total, including asset retirement obligation $ 8,828 $ 91 $ 667 $ 9,586 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 |
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, 2015 Fiscal year beginning balance $ 19,955 $ — $ 1,890 $ 21,845 Additions to capitalized costs 8,047 — 274 8,321 Assets sold or held for sale — — (680 ) (680 ) Reclassified to producing properties (1) (8,973 ) — — (8,973 ) Charged to expense — — (20 ) (20 ) Exchange adjustment — — (124 ) (124 ) Fiscal year closing balance $ 19,029 $ — $ 1,340 $ 20,369 Fiscal year ended June 30, 2014 Fiscal year beginning balance $ 496 $ 3,976 $ 1,762 $ 6,234 Additions to capitalized costs (2) 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 $ 19,955 $ — $ 1,890 $ 21,845 (1) The Company reclassified the capitalized costs for two of the five CO 2 -enhanced oil recovery pilot wells from wells in progress to producing properties during the forth quarter of fiscal 2015. (2) The Company began implementing a CO 2 -enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014. |
Quarterly Financial Data (Una48
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 Quarter Second Quarter Third Quarter Fourth Quarter June 30, (In thousands, except per share data) Fiscal year ended June 30, 2015 Revenue from oil production (1) $ 1,590 $ 1,265 $ 688 $ 916 $ 4,459 Total operating expenses (2) $ 4,280 $ 4,153 $ 4,863 $ 21,459 $ 34,755 Continuing operations: Loss from continuing operations attributable to Magellan Petroleum Corporation (3)(4) $ (2,627 ) $ (2,715 ) $ (2,115 ) $ (35,543 ) $ (43,000 ) Net loss per basic common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Net loss per diluted common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Attributable to common stockholders: Net loss $ (3,057 ) $ (3,145 ) $ (2,552 ) $ (35,986 ) $ (44,740 ) Net loss per basic common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) Net loss per diluted common share outstanding $(0.54) $(0.55) $(0.45) $(6.29) $(7.83) (1) The benchmark oil price, WTI declined significantly in the third quarter. (2) During the fourth quarter, the company recorded an impairment of its proved oil and gas properties of $17.4 million . (3) During the third quarter, a downward revision in the contingent consideration payable resulted in other income of $1.9 million . (4) Loss from continuing operations increased in the fourth quarter due to the impairment of proved oil and gas properties mentioned previously, and an other-than-temporary impairment of $14.9 million related to the Company's investment in Central. First Quarter Second Quarter Third Quarter Fourth Quarter June 30, 2014 (In thousands, except per share data) Fiscal year ended June 30, 2014 Revenue from oil production $ 2,134 $ 1,633 $ 1,907 $ 1,927 $ 7,601 Total operating expenses $ 5,737 $ 4,193 $ 4,927 $ 5,092 $ 19,949 Continuing operations: Loss from continuing operations (1) $ (3,681 ) $ (2,610 ) $ (3,072 ) $ (679 ) $ (10,042 ) Net loss per basic common share outstanding $(0.72) $(0.53) $(0.62) $(0.20) $(2.07) Net loss per diluted common share outstanding $(0.72) $(0.53) $(0.62) $(0.20) $(2.07) Attributable to common stockholders: Net (loss) income (2) $ (5,250 ) $ (4,533 ) $ 24,089 $ (493 ) $ 13,813 Net (loss) income per basic common share outstanding $(0.93) $(0.80) $4.25 $(0.08) $2.44 Net (loss) income per diluted common share outstanding $(0.93) $(0.80) $4.25 $(0.08) $2.44 (1) A downward revision of the contingent consideration payable during the fourth quarter of fiscal year 2014 resulted in $1.9 million of other income associated with our NP segment, refer to Note 7 - Fair Value Measurements for further details. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Jul. 10, 2015 | Jun. 30, 2015USD ($)segmentshares | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) |
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Number of operating segments | segment | 3 | |||
Net loss from operations | $ 30,296,000 | $ 12,348,000 | ||
Working capital | 3,900,000 | 25,600,000 | ||
Cash and cash equivalents | $ 1,051,000 | 16,422,000 | $ 32,469,000 | |
Accounts receivable collectability period | 2 months | |||
Allowance for doubtful accounts receivable | $ 0 | 0 | ||
Impairment of proved oil and gas properties | 17,353,000 | 0 | ||
Impairment of goodwill | 674,000 | 0 | ||
Goodwill | 500,000 | 1,174,000 | $ 2,174,000 | |
Uncertain tax positions | $ 0 | 0 | ||
Number of reportable segments | segment | 3 | |||
Shares issued upon conversion | shares | 1 | |||
Other long term assets | $ (1,045,000) | $ (1,374,000) | ||
Adjustments for New Accounting Principle, Early Adoption | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Other long term assets | 50,000 | |||
Notes payable | 50,000 | |||
Nautilus Poplar, LLC (NP) | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Impairment of goodwill | 700,000 | |||
MPUK | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Goodwill | 200,000 | |||
Magellan Petroleum Australia Limited (MPA) | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Goodwill | $ 300,000 | |||
Minimum | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Useful lives of assets | 3 years | |||
Maximum | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Maturity period of cash equivalents | 3 months | |||
Useful lives of assets | 15 years | |||
Utah CO2 LLC | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Majority interest percentage | 51.00% | |||
Central Petroleum Limited | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Ownership percentage | 11.00% | |||
Two separate third parties | Utah CO2 LLC | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Ownership percentage | 49.00% | |||
Third party owner | Utah CO2 LLC | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Ownership percentage | 10.00% | |||
Subsequent Event | ||||
Presentation and Significant Accounting Policies Information [Line Items] | ||||
Reverse stock split | 0.125 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Roll Forward] | ||
Fiscal year opening balance | $ 1,174 | $ 2,174 |
Sale of Amadeus Basin assets (see Note 3) | 0 | (1,000) |
Impairment of Nautilus Poplar goodwill | (674) | 0 |
Fiscal year closing balance | $ 500 | $ 1,174 |
Sale of Amadeus Basin Assets (D
Sale of Amadeus Basin Assets (Details) AUD in Thousands, $ in Thousands | Mar. 31, 2014AUD | Mar. 31, 2014AUD | Jan. 14, 2013shares | Mar. 31, 2014AUDAUD / Gigajoule | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount paid in exchange for assets | $ | $ 0 | $ 18,554 | ||||
Shares issued during period for acquisitions | shares | 543,478 | |||||
Amadeus Basin | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount paid in exchange for assets | AUD 20,000 | |||||
Customary purchase price adjustments | AUD 800 | |||||
Discount rate | 10.00% | |||||
Central Petroleum Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 11.00% | |||||
Central Petroleum Limited | Amadeus Basin | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 11.00% | |||||
Palm Valley | Amadeus Basin | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Royalty rate | 25.00% | |||||
AUD/Gigajoule gas price trigger for first ten years | AUD / Gigajoule | 5 | |||||
AUD/Gigajoule gas price trigger for following five years | AUD / Gigajoule | 6 | |||||
Royalty rate term, first 10 years | 10 years | |||||
Royalty rate term, following 5 years | 5 years | |||||
Maximum | Amadeus Basin | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Bonus discharge amount | AUD 7,000 | AUD 7,000 | AUD 7,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenue | $ 0 | $ 814 |
Loss from discontinued operations, net of tax | $ 0 | $ (4,461) |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Apr. 15, 2014 | |
Consideration: | |||
Reclassification of foreign currency translation gains to earnings upon sale of foreign subsidiary | $ 0 | $ 5,767 | |
Gain on disposal of discontinued operations, net of tax | $ 0 | 30,012 | |
Sale Deed | |||
Assets and liabilities sold: | |||
Property and equipment, net | (10,100) | ||
Deferred income taxes | (7,217) | ||
Goodwill allocated to the disposal group | (1,000) | ||
Asset retirement obligations | 4,457 | ||
Purchase price adjustments | 743 | ||
Total assets and liabilities of discontinued operations | (13,117) | ||
Consideration: | |||
Cash consideration | 13,859 | $ 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 Available-for-Sale54
Securities Available-for-Sale (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 19,147,000 | $ 19,339,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (14,917,000) | (7,404,000) |
Fair value | 4,230,000 | 11,935,000 |
Impairment on AFS securities | $ 0 | |
Central Petroleum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Impairment on AFS securities | 14,900,000 | |
Other investment | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Impairment on AFS securities | $ 171,000 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2015 | Sep. 17, 2014 | Jun. 30, 2014 | Jan. 31, 2011 |
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 5,500,000 | |||
Payment Guarantee | Collateralized Debt Obligations | ||||
Debt Instrument [Line Items] | ||||
Guarantee Maximum Exposure | $ 6,000,000 | |||
Notes Payable | Note Payable Due June 2014 | ||||
Debt Instrument [Line Items] | ||||
Note payable issued amount | $ 1,700,000 | |||
Prime Rate | Notes Payable | Note Payable Due June 2014 | ||||
Debt Instrument [Line Items] | ||||
Variable Rate Floor | 6.25% | |||
Basis spread on variable rate | 1.00% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 8,000,000 | |||
Borrowings outstanding | $ 5,500,000 | |||
Revolving Credit Facility | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Variable Rate Floor | 3.25% | |||
Term Loan | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Amortization period of principal | 4 years | |||
Term Loan | Prime Rate | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Variable Rate Floor | 4.75% | |||
Basis spread on variable rate | 1.50% |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 0 |
2,017 | 1,375,000 |
2,018 | 1,375,000 |
2,019 | 1,375,000 |
2,020 | 1,375,000 |
Total | $ 5,500,000 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Ownership percentage sold | 40.00% | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Fiscal year opening balance | $ 2,873 | $ 6,879 |
Liabilities assumed | 0 | 7 |
Accretion expense | 171 | 367 |
Sale of assets | (346) | (4,457) |
Revision to estimate | 0 | 0 |
Effect of exchange rate changes | (51) | 77 |
Fiscal year closing balance | 2,647 | 2,873 |
Less current asset retirement obligations | 0 | 397 |
Long term asset retirement obligations | $ 2,647 | $ 2,476 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value by Classification Level in Valuation Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Liabilities: | ||
Contingent consideration payable | $ 0 | $ 1,852 |
Recurring | ||
Assets: | ||
Securities available-for-sale | 4,230 | 11,935 |
Liabilities: | ||
Contingent consideration payable | 0 | 1,852 |
Recurring | Level 1 | ||
Assets: | ||
Securities available-for-sale | 4,230 | 11,935 |
Liabilities: | ||
Contingent consideration payable | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Securities available-for-sale | 0 | 0 |
Liabilities: | ||
Contingent consideration payable | 0 | 0 |
Recurring | Level 3 | ||
Assets: | ||
Securities available-for-sale | 0 | 0 |
Liabilities: | ||
Contingent consideration payable | $ 0 | $ 1,852 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Rolling production average | 60 days | |
Impairment of proved oil and gas properties | $ 17,353 | $ 0 |
Impairment of goodwill | 674 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Accretion expense | 36 | 315 |
Contingent consideration payable | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | 1,852 | 3,940 |
Accretion expense | 36 | 315 |
Revision to estimate | (1,888) | (2,403) |
Fiscal year closing balance | $ 0 | $ 1,852 |
Discounted cash flow model | Contingent consideration payable | Recurring | Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Discount rate | 8.00% |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income (Loss) Before Income Taxes | ||||||||||
United States | $ (24,798) | $ 4,262 | ||||||||
Loss from continuing operations attributable to Magellan Petroleum Corporation | $ (35,543) | $ (2,115) | $ (2,715) | $ (2,627) | (43,000) | 15,509 | ||||
Loss from continuing operations, net of tax | $ (679) | $ (3,072) | $ (2,610) | $ (3,681) | (43,411) | (10,042) | ||||
Australia | ||||||||||
Net Income (Loss) Before Income Taxes | ||||||||||
Foreign | (16,403) | (11,563) | ||||||||
United Kingdom | ||||||||||
Net Income (Loss) Before Income Taxes | ||||||||||
Foreign | $ (1,799) | $ (2,741) |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Tax provision computed per federal statutory rate | $ (14,620) | $ (3,414) |
State taxes, net of federal benefit | (1,005) | 549 |
Foreign rate differential | 908 | 818 |
Non taxable Australian revenue | 0 | (3,144) |
Goodwill write off | 0 | (58) |
APB 23 adjustment | 9,632 | 0 |
Change in valuation allowance | 2,846 | 3,476 |
Taxable dividends from subsidiaries, net of foreign tax credits | 0 | 3,586 |
Foreign tax credit adjustment | (310) | (761) |
Capital loss adjustment | 1,493 | 73 |
Impact of rate change | 189 | 291 |
Foreign currency translation differential | 1,255 | (434) |
Stock based compensation forfeitures | 545 | |
Contingent consideration payable write off | (630) | (710) |
Other items | (303) | (272) |
Consolidated income tax expense (benefit) | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Consolidated current income tax provision | $ 0 | $ 0 |
Consolidated deferred income tax provision | 0 | 0 |
Consolidated income tax expense (benefit) | 0 | 0 |
Continuing operations | 0 | 0 |
Discontinued operations | $ 0 | $ 7,217 |
Effective tax rate for continuing operations | 0.00% | 0.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax liabilities | ||
Land, buildings and equipment | $ 0 | $ (4,030) |
Foreign investments | (7,451) | |
Other items | (128) | (157) |
Total deferred tax liabilities | (7,579) | (4,187) |
Deferred tax assets | ||
Acquisition and development costs | 365 | 0 |
Asset retirement obligations | 990 | 923 |
Net operating losses, capital losses, and foreign tax credit carry forwards | 18,521 | 13,891 |
United Kingdom exploration costs and net operating losses | 3,639 | 3,851 |
Investments | 100 | 2,378 |
Stock option compensation | 2,184 | 2,839 |
Australian capitalized legal costs | 116 | 143 |
Other items | 141 | 141 |
Total deferred tax asset | 26,056 | 24,166 |
Valuation allowance | (18,477) | (19,979) |
Net long term deferred tax asset | $ 0 | $ 0 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | $ 13,709 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 19,218 |
Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 9,111 |
Expires 2017 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2017 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 8 |
Expires 2017 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 310 |
Expires 2018 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2018 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 3,103 |
Expires 2018 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 0 |
Expires 2019 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2019 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 559 |
Expires 2019 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 1,411 |
Expires 2020 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2020 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 2,212 |
Expires 2020 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 624 |
Expires 2021 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2021 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 27 |
Expires 2021 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 1,443 |
Expires 2022 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2022 | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 13,309 |
Expires 2022 | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | 3,655 |
Expires 2023 and thereafter | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 13,709 |
Expires 2023 and thereafter | State | |
Operating Loss Carryforwards [Line Items] | |
Net Operating Losses | 0 |
Expires 2023 and thereafter | Federal Foreign | |
Operating Loss Carryforwards [Line Items] | |
Foreign Tax Credit | $ 1,668 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Valuation Allowance [Line Items] | ||
Decrease in valuation allowance | $ 1,500,000 | |
Deferred tax asset, net of tax liability related to basis difference in foreign subsidiaries | 8,600,000 | |
Basis difference in foreign subsidiaries | 10,900,000 | |
Income tax expense | 0 | $ 0 |
Uncertain tax positions | 0 | $ 0 |
Amadeus Basin | ||
Valuation Allowance [Line Items] | ||
Deferred income taxes | (7,200,000) | |
Federal | ||
Valuation Allowance [Line Items] | ||
Tax deduction from compensation expense | $ 252,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) $ / shares in Units, $ in Thousands | Oct. 17, 2014USD ($) | Oct. 10, 2014shares | Jul. 01, 2014shares | Oct. 31, 2014trading_day$ / sharesshares | Oct. 31, 2013trading_day$ / shares | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Jan. 16, 2013shares | Jan. 15, 2013shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 223,123 | 452,493 | ||||||||
Fair value of stock options vesting | $ | $ 132 | $ 1,200 | ||||||||
Stock options exercised (in shares) | 61,849 | 34,375 | ||||||||
Number of stock options forfeited/canceled | 427,969 | 16,250 | ||||||||
Number of stock options expired | 12,499 | 0 | ||||||||
Issuance of common stock (in shares) | 34,112 | |||||||||
Common shares from options exercised, net of shares withheld for tax obligations (in shares) | 34,112 | 28,877 | ||||||||
Cash received from the exercise of stock options | $ | $ 115 | $ 201 | ||||||||
Share-based compensation expense | $ | 891 | 2,000 | ||||||||
Unrecognized stock compensation expense related to options granted | $ | $ 900 | |||||||||
Weighted average cost recognition period | 1 year 4 months 17 days | |||||||||
Additional options expected to vest | 20,624 | |||||||||
Unvested options forfeited | 238,907 | |||||||||
Shares repurchased during period | $ | $ 1,445 | |||||||||
Repurchase of common stock | $ | 566 | $ 11 | ||||||||
Non-employee Directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options exercised (in shares) | 2,734 | |||||||||
Share-based compensation expense | $ | $ 264 | |||||||||
2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 625,000 | |||||||||
Expiration term | 10 years | |||||||||
1998 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 36,054 | |||||||||
1998 Stock Incentive Plan | Former Executive | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock repurchased from former executive | 31,250 | 189,062 | 189,062 | |||||||
Number of stock options forfeited/canceled | 189,062 | |||||||||
Shares repurchased during period | $ | $ 1,400 | |||||||||
Repurchase of common stock | $ | $ 983 | $ 462 | ||||||||
Former executive office ownership, percent, more than | 5.00% | |||||||||
Amount of withholding taxes | $ | $ 318 | |||||||||
RSUs | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum number of shares allowed to be issued each year | 62,500 | |||||||||
TBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 16,875 | 77,493 | ||||||||
TBOs | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 16,875 | 77,493 | ||||||||
PBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 156,250 | 187,500 | ||||||||
PBOs | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 156,250 | 156,250 | 187,500 | |||||||
MBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 49,998 | 187,500 | ||||||||
Number of consecutive trading days | trading_day | 10 | |||||||||
MBOs | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 49,998 | 49,998 | 187,500 | |||||||
Vesting Period | 3 years | |||||||||
Per share closing price (usd per share) | $ / shares | $ 40 | $ 18.80 | ||||||||
Number of consecutive trading days | trading_day | 90 | 10 | ||||||||
Median stock price (usd per share) | $ / shares | $ 40 | $ 18.80 | ||||||||
Other Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options | 0 | |||||||||
Prior Period Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amortization expense | $ | $ 555 | |||||||||
Employee Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | (648) | |||||||||
Amortization expense | $ | $ 708 | |||||||||
Employee Stock Option | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum number of shares allowed to be issued each year | 125,000 | |||||||||
Market based or performance based options, not vested (in shares) | 332,028 | |||||||||
Market based and performance based shares available for future issuance (in shares) | 169,453 | |||||||||
Employee Stock Option | 1998 Stock Incentive Plan | Former Executive | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock repurchased from former executive | 189,062 | |||||||||
Common Stock | Non-employee Directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 12,041 | |||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ (67) | |||||||||
Restricted Stock | 2015 Incentive Compensation Program | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 79 | |||||||||
Restricted Stock | 2015 Incentive Compensation Program | Executives | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 12,500 | |||||||||
Restricted Stock | 2015 Incentive Compensation Program | Chairman of the Board | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grants in period (in shares) | 6,250 | |||||||||
RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unvested RSUs forfeited | 17,500 | |||||||||
CO2-EOR Pilot Program at Poplar | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 10.00% | |||||||||
CO2-EOR Development Project at Poplar | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 40.00% | |||||||||
CO2-EOR Development Project at Poplar | PBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 20.00% | |||||||||
Sale of Substantially All of the Amadeus Basin Assets | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 20.00% | |||||||||
Approval of a Farmout Agreement or Participation in Drilling a Well in the Weald Basin | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 20.00% | |||||||||
Approval of a Farmout Agreement in the Bonaparte Basin | 2012 Stock Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 10.00% | |||||||||
Preparing Poplar of Commercially Viable CO2-EOR Development | PBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 40.00% | |||||||||
Progressing UK Operations in the Weald Basin | PBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 20.00% | |||||||||
Moving Forward with Farnham Dome Project | PBOs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Performance metrics weighted average | 20.00% |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Shares | ||
Balance at beginning of year (in shares) | 1,311,528 | 909,660 |
Granted (in shares) | 223,123 | 452,493 |
Exercised (in shares) | (61,849) | (34,375) |
Forfeited (in shares) | (427,969) | (16,250) |
Expired (in shares) | (12,499) | 0 |
Balance at end of year (in shares) | 1,032,334 | 1,311,528 |
WAEPS | ||
Weighted Average Exercise Price, Balance at beginning of year (in dollar per share) | $ 10.08 | $ 10.90 |
Weighted Average Exercise Price, Granted (in dollar per share) | 13.83 | 8.27 |
Weighted Average Exercise Price, Exercised (in dollar per share) | 8.74 | 8.53 |
Weighted Average Exercise Price, Forfeited (in dollar per share) | 9.68 | 8.31 |
Weighted Average Exercise Price, Expired (in dollars per share) | 8.90 | 0 |
Weighted Average Exercise Price, Balance at end of year (in dollar per share) | $ 11.15 | $ 10.08 |
Weighted average remaining contractual term (in years) | 5 years 6 months 22 days | 6 years 10 days |
Stock Based Compensation - St68
Stock Based Compensation - Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Jun. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number of shares | shares | 1,032,334 |
Options outstanding, Weighted average remaining contractual life (in years) | 5 years 6 months 23 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 11.15 |
Options outstanding, Aggregate intrinsic value | $ | $ 0 |
Options exercisable, Number of shares | shares | 679,057 |
Options exercisable, Weighted average remaining contractual life (in years) | 3 years 10 months 15 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 11.29 |
Options exercisable, Aggregate Intrinsic Value | $ | $ 0 |
$6.32 - $8.32 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | $ 6.32 |
Range of exercise prices, maximum (in dollars per share) | $ 8.32 |
Options outstanding, Number of shares | shares | 273,747 |
Options outstanding, Weighted average remaining contractual life (in years) | 8 years 19 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 8.08 |
Options exercisable, Number of shares | shares | 81,092 |
Options exercisable, Weighted average remaining contractual life (in years) | 7 years 2 months 20 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 7.98 |
$8.33 - $9.44 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 8.33 |
Range of exercise prices, maximum (in dollars per share) | $ 9.44 |
Options outstanding, Number of shares | shares | 190,622 |
Options outstanding, Weighted average remaining contractual life (in years) | 5 years 13 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 8.77 |
Options exercisable, Number of shares | shares | 186,248 |
Options exercisable, Weighted average remaining contractual life (in years) | 4 years 11 months 18 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 8.78 |
$9.45 - $11.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 9.45 |
Range of exercise prices, maximum (in dollars per share) | $ 11.20 |
Options outstanding, Number of shares | shares | 198,436 |
Options outstanding, Weighted average remaining contractual life (in years) | 1 year 3 months 3 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 9.60 |
Options exercisable, Number of shares | shares | 198,436 |
Options exercisable, Weighted average remaining contractual life (in years) | 1 year 3 months 3 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 9.60 |
$11.21 - $14.56 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 11.21 |
Range of exercise prices, maximum (in dollars per share) | $ 14.56 |
Options outstanding, Number of shares | shares | 200,779 |
Options outstanding, Weighted average remaining contractual life (in years) | 7 years 4 months 9 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 14.05 |
Options exercisable, Number of shares | shares | 44,531 |
Options exercisable, Weighted average remaining contractual life (in years) | 4 months 29 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 12.80 |
$14.57 - $19.28 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (in dollars per share) | 14.57 |
Range of exercise prices, maximum (in dollars per share) | $ 19.28 |
Options outstanding, Number of shares | shares | 168,750 |
Options outstanding, Weighted average remaining contractual life (in years) | 5 years 19 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 17.22 |
Options exercisable, Number of shares | shares | 168,750 |
Options exercisable, Weighted average remaining contractual life (in years) | 5 years 19 days |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 17.22 |
Stock Based Compensation - Weig
Stock Based Compensation - Weighted-Average Assumptions (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options | 223,123 | 452,493 |
TBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options | 16,875 | 77,493 |
Weighted-average grant date fair value per share | $ 3.73 | $ 4.79 |
Expected dividend | $ 0 | $ 0 |
Forfeiture rate | 22.6274% | 0.00% |
Risk free interest rate | 1.50% | 1.30% |
Expected life (years) | 6 years | 5 years 11 months 30 days |
Expected volatility (based on historical price) | 57.40% | 62.10% |
PBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options | 156,250 | 187,500 |
Weighted-average grant date fair value per share | $ 7.13 | $ 4.50 |
Expected dividend | $ 0 | $ 0 |
Forfeiture rate | 15.00% | 0.00% |
PBOs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.70% | 1.50% |
Expected life (years) | 5 years 3 months 7 days | 4 months 25 days |
Expected volatility (based on historical price) | 53.60% | 61.70% |
PBOs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.70% | 1.70% |
Expected life (years) | 5 years 4 months 21 days | 1 year 7 months 7 days |
Expected volatility (based on historical price) | 54.10% | 61.90% |
MBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options | 49,998 | 187,500 |
Weighted-average grant date fair value per share | $ 9.39 | $ 5.52 |
Expected dividend | $ 0 | $ 0 |
Forfeiture rate | 15.00% | 0.00% |
Risk free interest rate | 2.40% | 2.80% |
Expected life (years) | 2 years 7 months | |
Expected volatility (based on historical price) | 64.40% | 66.60% |
MBOs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 2 months 12 days | |
MBOs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 10 months 24 days |
Preferred Stock (Details)
Preferred Stock (Details) | May. 10, 2013USD ($)Board_Member$ / sharesshares | May. 10, 2013USD ($)Board_Member$ / sharesshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jul. 10, 2015$ / shares |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | shares | 50,000,000 | |||||
Shares issued upon conversion | shares | 1 | |||||
Preferred stock dividend | $ 1,740,000 | $ 1,696,000 | ||||
Accrued dividends | 0 | 429,000 | ||||
Preferred stock dividends paid in kind | 1,311,000 | 1,037,000 | ||||
Accretion expense of contingent consideration payable | $ 36,000 | 315,000 | ||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | shares | 28,000,000 | |||||
Issuance of Series A Preferred Stock | shares | 19,239,734 | |||||
Preferred stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Price per share (in dollars per share) | $ / shares | $ 1.22149381 | $ 1.22149381 | ||||
Proceeds from issuance of preferred stock | $ 23,500,000 | |||||
Shares issued upon conversion | shares | 1 | 1 | ||||
Dividend rate | 7.00% | |||||
Forced conversion maximum allowable amount to exceed conversion price for 20 of 30 consecutive trading days | 200.00% | 200.00% | ||||
Consecutive trading days | 30 days | |||||
Forced conversion average daily trading volume denominator | 45 | |||||
Written notied for redemption period | 30 days | |||||
Redemption annualized rate of return | 20.00% | 20.00% | ||||
Liquidation premium until second anniversary of issuance | 115.00% | 115.00% | ||||
Liquidation premium after second anniversary until third anniversary of issuance | 110.00% | 110.00% | ||||
Liquidation premium after third anniversary until fourth anniversery of issuance | 105.00% | 105.00% | ||||
Preferred stock dividend | $ 1,700,000 | 1,700,000 | ||||
Accrued dividends | 0 | 429,000 | ||||
Preferred stock dividends paid in kind | 1,311,000 | 837,000 | ||||
PIK dividend shares issued, for previously accrued dividend | $ 0 | $ 201,000 | ||||
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 | Board_Member | 2 | 2 | ||||
Maximum number of Board members with 10% ownership of fully diluted shares | Board_Member | 1 | 1 | ||||
Minority veto rights, capital expenditures | $ 15,000,000 | $ 15,000,000 | ||||
Minority veto rights, Board of DIrectors maximum members | Board_Member | 12 | 12 | ||||
Standstill period | 2 years | |||||
Subsequent Event | Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Adjusted conversion price (usd per share) | $ / shares | $ 9.77586545 | |||||
Minimum | Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Consecutive trading days | 20 days | |||||
Common Stock | One Stone | ||||||
Class of Stock [Line Items] | ||||||
Ownership percentage | 15.00% | 15.00% | ||||
Common Stock | One Stone | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Ownership percentage | 10.00% | 10.00% |
Preferred Stock - Rollforward (
Preferred Stock - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Amount | ||
Fiscal year opening balance | $ 24,539 | |
Current year PIK dividends shares issued | 1,311 | $ 1,037 |
Fiscal year closing balance | $ 25,850 | $ 24,539 |
Series A Preferred Stock | ||
Number of shares issued | ||
Fiscal year opening balance | 20,089,436 | 19,239,734 |
PIK dividend shares issued, for previously accrued dividend | 0 | 164,607 |
Current year PIK dividends shares issued | 1,073,261 | 685,095 |
Fiscal year closing balance | 21,162,697 | 20,089,436 |
Amount | ||
Fiscal year opening balance | $ 24,539 | $ 23,501 |
PIK dividend shares issued, for previously accrued dividend | 0 | 201 |
Current year PIK dividends shares issued | 1,311 | 837 |
Fiscal year closing balance | $ 25,850 | $ 24,539 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jul. 10, 2015shares | Oct. 10, 2014shares | Jul. 01, 2014shares | Jan. 14, 2013USD ($)$ / sharesshares | Nov. 30, 2012shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jul. 09, 2015shares | Jun. 30, 2013USD ($)$ / sharesshares | Sep. 24, 2012USD ($) |
Class of Stock [Line Items] | ||||||||||
Treasury stock, (in shares) | 1,209,389 | 1,178,139 | 1,176,772 | |||||||
Stock repurchase program authorized amount | $ | $ 2,000,000 | |||||||||
Treasury shares acquired | 31,250 | |||||||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 462,000 | |||||||||
Shares issued for acquisition | 543,478 | |||||||||
Repayments of related party debt | $ | $ 10,000,000 | |||||||||
Treasury stock value | $ | $ 9,806,000 | $ 9,344,000 | $ 9,333,000 | |||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock, shares | 5,981 | 1,367 | ||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ | $ 104,000 | $ 11,000 | ||||||||
Treasury Stock, Shares, Retired | (5,981) | |||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock, amount | $ | $ (104,000) | |||||||||
Exercise price of the warrant | $ / shares | $ 11.15 | $ 10.08 | $ 10.90 | |||||||
Retired Warrant | ||||||||||
Class of Stock [Line Items] | ||||||||||
Payments for repurchase of warrants | $ | $ 800,000 | |||||||||
Common stock price on repurchase date | $ / shares | 7.20 | |||||||||
Exercise price of the warrant | $ / shares | $ 9.20 | |||||||||
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 | 18,692 | |||||||||
Remaining common stock authorized for repurchase | $ | $ 1,900,000 | |||||||||
Collateral Agreement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Treasury shares acquired | 1,158,080 | |||||||||
Treasury stock value | $ | $ 9,200,000 | |||||||||
Treasury stock average cost (dollars per share) | $ / shares | $ 7.944 | |||||||||
Restricted Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 18,750 | |||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock, shares | 5,981 | |||||||||
Former Company Executive | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock Repurchased from Individual Retirement Account During Period, Shares | 31,250 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Reverse stock split | 0.125 | |||||||||
Treasury stock, (in shares) | 1,209,389 | 9,675,114 |
(Loss) Earnings Per Share (Deta
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||||||||
Loss from continuing operations, net of tax | $ (43,411) | $ (10,042) | ||||||||
Preferred stock dividends | (1,740) | (1,696) | ||||||||
Net loss from continuing operations, including preferred stock dividends | (45,151) | (11,738) | ||||||||
Net income (loss) from discontinued operations | 0 | 25,551 | ||||||||
Net loss attributable to non-controlling interest in subsidiary | 411 | 0 | ||||||||
Net (loss) income attributable to common stockholders | $ (35,986) | $ (2,552) | $ (3,145) | $ (3,057) | $ (493) | $ 24,089 | $ (4,533) | $ (5,250) | $ (44,740) | $ 13,813 |
Basic weighted-average shares outstanding | ||||||||||
Basic weighted-average shares outstanding | 5,710,288 | 5,671,603 | ||||||||
Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants | 0 | 0 | ||||||||
Diluted weighted-average common shares outstanding | 5,710,288 | 5,671,603 | ||||||||
Basic net (loss) earnings per common share: | ||||||||||
Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.20) | $ (0.62) | $ (0.53) | $ (0.72) | $ (7.83) | $ (2.07) |
Net income from discontinued operations (usd per share) | 0 | 4.51 | ||||||||
Net income (loss) attributable to common stockholders (usd per share) | (6.29) | (0.45) | (0.55) | (0.54) | (0.08) | 4.25 | (0.80) | (0.93) | (7.83) | 2.44 |
Diluted net (loss) earnings per common share | ||||||||||
Net loss from continuing operations attributable to Magellan Petroleum Corporation, including preferred stock dividends (usd per share) | (6.29) | (0.45) | (0.55) | (0.54) | (0.20) | (0.62) | (0.53) | (0.72) | (7.83) | (2.07) |
Net income (loss) from discontinued operations (usd per share) | 0 | 4.51 | ||||||||
Net income (loss) attributable to common stockholders (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.08) | $ 4.25 | $ (0.80) | $ (0.93) | $ (7.83) | $ 2.44 |
(Loss) Earnings Per Share - Sch
(Loss) Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 2,696,951 | 2,632,147 |
In-the-money stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 27,673 | 65,723 |
Non-vested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 25,000 | 56,250 |
Series A Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 2,644,278 | 2,510,174 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of operating segments | segment | 3 | |||||||||
Revenue from NP oil production | $ 916 | $ 688 | $ 1,265 | $ 1,590 | $ 1,927 | $ 1,907 | $ 1,633 | $ 2,134 | $ 4,459 | $ 7,601 |
Loss from continuing operations, net of tax | (679) | $ (3,072) | $ (2,610) | $ (3,681) | (43,411) | (10,042) | ||||
Assets | 46,700 | 81,435 | 46,700 | 81,435 | ||||||
Expenditures for additions to long lived assets | 9,073 | 20,923 | ||||||||
Depletion, depreciation, amortization, and accretion | 1,149 | 1,123 | ||||||||
Lease operating | 5,089 | 6,257 | ||||||||
Exploration | 1,563 | 3,484 | ||||||||
Nautilus Poplar, LLC (NP) | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Other Income | 1,900 | |||||||||
Operating segments | Nautilus Poplar, LLC (NP) | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue from NP oil production | 4,459 | 7,601 | ||||||||
Loss from continuing operations, net of tax | (19,092) | 1,828 | ||||||||
Assets | 37,130 | 48,161 | 37,130 | 48,161 | ||||||
Expenditures for additions to long lived assets | 8,795 | 20,334 | ||||||||
Depletion, depreciation, amortization, and accretion | 1,001 | 977 | ||||||||
Lease operating | 5,089 | 6,257 | ||||||||
Exploration | 1,079 | 541 | ||||||||
Operating segments | Magellan Petroleum Australia Limited (MPA) | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Loss from continuing operations, net of tax | (16,404) | (934) | ||||||||
Assets | 4,593 | 14,215 | 4,593 | 14,215 | ||||||
Exploration | 91 | 436 | ||||||||
Operating segments | MPUK | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Loss from continuing operations, net of tax | (1,799) | (2,585) | ||||||||
Assets | 2,373 | 7,156 | 2,373 | 7,156 | ||||||
Expenditures for additions to long lived assets | 275 | 526 | ||||||||
Exploration | 393 | 2,507 | ||||||||
Corporate | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Loss from continuing operations, net of tax | (6,139) | (8,351) | ||||||||
Assets | 79,474 | 88,249 | 79,474 | 88,249 | ||||||
Expenditures for additions to long lived assets | 3 | 63 | ||||||||
Depletion, depreciation, amortization, and accretion | 148 | 146 | ||||||||
Inter-segment Elimination | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Loss from continuing operations, net of tax | 23 | 0 | ||||||||
Assets | $ (76,870) | $ (76,346) | $ (76,870) | $ (76,346) |
Commitments and Contingencies76
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts payable in fiscal year: | ||
2,016 | $ 173 | |
2,017 | 177 | |
2,018 | 74 | |
Thereafter | 0 | |
Total | 424 | |
Rent Expenses | $ 300 | $ 300 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations (Details) £ in Thousands, AUD in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015GBP (£) | Jun. 30, 2015AUD | Jun. 30, 2014USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Accrued income taxes current | $ 1,700,000 | $ 1,700,000 | $ 1,600,000 | ||
NT/P82 Seismic Survey, Geotechnical Studies | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Estimated costs for other commitments | AUD | AUD 500 | ||||
NT/P82 Seismic Survey, Drilling of Exploration Well | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Estimated costs for other commitments | AUD | 25,000 | ||||
NT/P82 Seismic Survey, Completion of Seismic Survey | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Estimated costs for other commitments | AUD | AUD 16,000 | ||||
J. Thomas Wilson | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Percentage of contingent cash payments | 52.00% | 52.00% | 52.00% | ||
Accrued and Other Liabilities | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Accrued income taxes current | $ 1,700,000 | $ 1,700,000 | 1,600,000 | ||
Prepaid and Other Assets | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Amount of income tax liability if not paid by related party | 1,700,000 | 1,700,000 | $ 1,600,000 | ||
Nautilus Poplar, LLC (NP) | Maximum | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Contingent consideration potential cash payment | 5,000,000 | $ 5,000,000 | |||
Petrie Partners, LLC | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Contingent financial adviser fees | $ 0 | ||||
Contingent financial adviser fees, percentage of transaction | 3.00% | 3.00% | 3.00% | ||
Mi3 | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Contingent bonuses payable | $ 365,000 | $ 365,000 | |||
MPUK | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% | 50.00% | ||
Celtique Claim | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Payment sought by plaintiff | $ 2,400,000 | £ 1,500 | |||
Percentage above base rate payment | 5.00% | 5.00% | 5.00% | ||
Closing costs paid by plaintiff | $ 94,000 | £ 60 | |||
Capitalized costs related to petroleum license | $ 953,000 | $ 953,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 4 Months Ended | 12 Months Ended | |
Mar. 31, 2015AUD | Jun. 30, 2015USD ($)ownerattorneypartner | Jun. 30, 2014USD ($) | |
Davis Graham & STUBBS LLP | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Number of attorneys - over | attorney | 140 | ||
Number of partners - over | partner | 65 | ||
Devizes International Consulting Limited | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | $ 184,000 | $ 161,000 | |
Key Energy Services Inc (KES) | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 0 | 2,200,000 | |
Related party payable | 0 | ||
Legal Fees | Davis Graham & STUBBS LLP | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 335,000 | 177,000 | |
Compensation Arrangement | Director | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 0 | $ 2,500 | |
Compensation Arrangement | MPA | Director | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | AUD | AUD 5,400 | ||
Compensation Arrangement | Mi3 | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | $ 1,100,000 | ||
Utah CO2 LLC | MI4 | |||
Related Party Transaction [Line Items] | |||
Number of non-controlling interest owners | owner | 1 |
Employee Retention and Severa79
Employee Retention and Severance Costs (Details) - USD ($) | Jun. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 05, 2015 |
Employee Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Cash payments | $ (475,000) | |||
Employee Severance | Continuing Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Fiscal year beginning balance | 0 | $ 418,000 | ||
Charges to general and administrative expense | 475,000 | |||
Cash payments | (475,000) | (418,000) | ||
Fiscal year closing balance | 0 | 0 | ||
Employee Severance | Discontinued Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Fiscal year beginning balance | $ 0 | 0 | ||
Charges to loss from discontinued operations, net of tax | 1,210,000 | |||
Cash payments | (1,210,000) | |||
Fiscal year closing balance | $ 0 | |||
CFO Incentive Agreements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Salary cap under incentive plan | $ 600,000 | |||
CFO Incentive Agreements | Common Stock | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Minimum market value threshold (in dollars per share) | $ 1.60 | |||
CFO Incentive Agreements | Common Stock | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Market value of stock tied to contingent cash payment | $ 0 | |||
CFO Incentive Agreements | Common Stock | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Market value of stock tied to contingent cash payment | 1,000,000 | |||
Cash award for each market share | $ 2,750 | |||
CFO Incentive Agreements | Restricted Stock | Executives | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Shares granted under plan | 62,500 | |||
CFO Incentive Agreements | Phantom Stock | Executives | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Shares granted under plan | 62,500 | |||
Employee Retention Cash Bonus Plan | Employees | Bonus Contingent Upon Filing of 10K | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Deferred bonuses contingent upon milestones | $ 168,000 | |||
Employee Retention Cash Bonus Plan | Employees | Bonus Contingent Upon Closing Date of Strategic Transaction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Deferred bonuses contingent upon milestones | $ 286,000 |
Accumulated Other Comprehensi80
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Fiscal year opening balance | $ (2,009) |
Other comprehensive (loss) income before reclassification | (8,435) |
Amounts reclassified from other comprehensive loss | 15,746 |
Net current period other comprehensive loss | 7,311 |
Fiscal year ending balance | 5,302 |
Accumulated Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Fiscal year opening balance | 6,144 |
Other comprehensive (loss) income before reclassification | (2,141) |
Amounts reclassified from other comprehensive loss | 659 |
Net current period other comprehensive loss | (1,482) |
Fiscal year ending balance | 4,662 |
Unrealized investment holding loss | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Fiscal year opening balance | (8,153) |
Other comprehensive (loss) income before reclassification | (6,294) |
Amounts reclassified from other comprehensive loss | 15,087 |
Net current period other comprehensive loss | 8,793 |
Fiscal year ending balance | $ 640 |
Subsequent Events (Details)
Subsequent Events (Details) AUD / shares in Units, $ / shares in Units, £ in Thousands, AUD in Millions | Oct. 09, 2015AUDshares | Sep. 30, 2015shares | Jul. 01, 2015shares | Aug. 31, 2015GBP (£) | Jul. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014$ / sharesshares | Jul. 10, 2015$ / sharesshares | Jul. 09, 2015shares | Jun. 30, 2015AUD / shares | Jun. 30, 2013shares | May. 10, 2013$ / shares |
Subsequent Event [Line Items] | ||||||||||||
Common stock, issued (in shares) | 6,917,027 | 6,875,605 | ||||||||||
Treasury stock, (in shares) | 1,209,389 | 1,178,139 | 1,176,772 | |||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock (in shares) | 5,981 | 1,367 | ||||||||||
Number of stock options expired | 12,499 | 0 | ||||||||||
Shares owned in investment | 6,917,027 | 6,875,605 | ||||||||||
Current share price (usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Central Petroleum | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Current share price (usd per share) | AUD / shares | AUD 0.155 | |||||||||||
Foreign exchange rate | 0.72 | |||||||||||
Potential liquidity | $ | $ 3,100,000 | |||||||||||
Series A Preferred Stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Price per share (in dollars per share) | $ / shares | $ 1.22149381 | |||||||||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, issued (in shares) | 6,911,921 | 55,313,647 | ||||||||||
Treasury stock, (in shares) | 1,209,389 | 9,675,114 | ||||||||||
Number of stock options expired | 33,333 | |||||||||||
Shares, including forfeited shares, available for future issuance | 202,786 | |||||||||||
Subsequent Event | NT/P82 Seismic Survey | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash payment for first initial stage | $ | $ 20,000 | |||||||||||
Cash payment for second initial stage | $ | 80,000 | |||||||||||
Success fee minimum amount | $ | $ 250,000 | |||||||||||
Success fee maximum amount (percentage) | 5.00% | |||||||||||
Subsequent Event | Celtique Litigation | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
License fees paid | £ | £ 50 | |||||||||||
Subsequent Event | Central Petroleum | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Investment owned, number of shares | 27,400,000 | |||||||||||
Subsequent Event | Amadeus Basin | Central Petroleum | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Investment owned, number of shares | 39,500,000 | |||||||||||
Proceeds from sale of shares | AUD | AUD 1.3 | |||||||||||
Subsequent Event | Restricted Stock Units (RSUs) | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Shares vested (in shares) | 12,500 | |||||||||||
Net shares repurchased for employee tax costs upon vesting of restricted stock (in shares) | 2,822 | |||||||||||
Subsequent Event | Series A Preferred Stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Adjusted conversion price (usd per share) | $ / shares | $ 9.77586545 |
Supplemental Oil and Gas Info82
Supplemental Oil and Gas Information (Unaudited) - Proved Reserves Quantities (Details) | 12 Months Ended | |
Jun. 30, 2015MBblsbblMMcf | Jun. 30, 2014wellbblMMcf | |
Proved Developed and Undeveloped Reserves [Abstract] | ||
Revision of previous estimates | MBbls | (3,417,000) | |
Removal proved undeveloped reserves from the classification of proved reserves due to uncertainty | MBbls | 3,083,000 | |
Number of wells in drilling program | well | 9 | |
Number of wells recently drilled for CO2EOR pilot project | well | 5 | |
Oil (in Mbbls) | ||
Proved Developed and Undeveloped Reserves [Abstract] | ||
Beginning Balance | 5,735,700 | 7,368,600 |
Revision of previous estimates | (3,417,100) | (1,515,000) |
Sales of minerals in place | 0 | |
Production | (79,000) | (117,900) |
Ending Balance | 2,239,600 | 5,735,700 |
Proved Developed Reserves (Volume) | 2,239,600 | 2,494,600 |
Proved Undeveloped Reserves (Volume) | 0 | 3,241,100 |
Gas (in MMcf) | ||
Proved Developed and Undeveloped Reserves [Abstract] | ||
Beginning Balance | MMcf | 0 | 11,400 |
Revision of previous estimates | MMcf | 0 | 0 |
Sales of minerals in place | MMcf | (11,400) | |
Production | MMcf | 0 | 0 |
Ending Balance | MMcf | 0 | 0 |
Proved Developed Reserves (Volume) | MMcf | 0 | 0 |
Proved Undeveloped Reserves (Volume) | MMcf | 0 | 0 |
United States | Oil (in Mbbls) | ||
Proved Developed and Undeveloped Reserves [Abstract] | ||
Beginning Balance | 5,735,700 | 7,368,600 |
Revision of previous estimates | (3,417,100) | (1,515,000) |
Sales of minerals in place | 0 | |
Production | (79,000) | (117,900) |
Ending Balance | 2,239,600 | 5,735,700 |
Proved Developed Reserves (Volume) | 2,239,600 | 2,494,600 |
Proved Undeveloped Reserves (Volume) | 0 | 3,241,100 |
Australia | Gas (in MMcf) | ||
Proved Developed and Undeveloped Reserves [Abstract] | ||
Beginning Balance | MMcf | 0 | 11,400 |
Revision of previous estimates | MMcf | 0 | 0 |
Sales of minerals in place | MMcf | (11,400) | |
Production | MMcf | 0 | 0 |
Ending Balance | MMcf | 0 | 0 |
Proved Developed Reserves (Volume) | MMcf | 0 | 0 |
Proved Undeveloped Reserves (Volume) | MMcf | 0 | 0 |
Supplemental Oil and Gas Info83
Supplemental Oil and Gas Information (Unaudited) - Proved Oil and Gas Quantities (Details) - $ / bbl | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Oil | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Average Sales Prices | 58.93 | 86.11 |
Supplemental Oil and Gas Info84
Supplemental Oil and Gas Information (Unaudited) - Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Discount Rate | 10.00% | ||
Standardized measures of discounted future net cash flows | $ 17,017 | $ 87,043 | $ 107,676 |
United States | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Future cash inflows | 131,979 | 493,901 | |
Future production costs | (85,372) | (226,464) | |
Future development costs | (7,021) | (23,594) | |
Future income tax expense | 0 | (73,820) | |
Future net cash flows | 39,586 | 170,023 | |
10% annual discount | (22,569) | (82,980) | |
Standardized measures of discounted future net cash flows | $ 17,017 | $ 87,043 | $ 97,391 |
Supplemental Oil and Gas Info85
Supplemental Oil and Gas Information (Unaudited) - Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flow Relating to Proved Oil and Gas Reserves [Roll Forward] | ||
Fiscal year beginning balance | $ 87,043 | $ 107,676 |
Net change in prices and production costs | (71,406) | (10,222) |
Revisions of previous quantity estimates | (54,415) | (34,441) |
Divestiture of reserves | 0 | (10,285) |
Changes in estimated future development costs | 9,071 | 3,161 |
Sales and transfers of oil and gas produced | (440) | (4,720) |
Previously estimated development cost incurred during the period | 7,749 | 1,723 |
Accretion of discount | 8,853 | 14,632 |
Net change in income taxes | 32,188 | 16,746 |
Net change in timing and other | (1,626) | 2,773 |
Fiscal year ending balance | 17,017 | 87,043 |
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 | 87,043 | 97,391 |
Net change in prices and production costs | (71,406) | (10,222) |
Revisions of previous quantity estimates | (54,415) | (34,441) |
Divestiture of reserves | 0 | 0 |
Changes in estimated future development costs | 9,071 | 3,161 |
Sales and transfers of oil and gas produced | (440) | (4,720) |
Previously estimated development cost incurred during the period | 7,749 | 1,723 |
Accretion of discount | 8,853 | 14,632 |
Net change in income taxes | 32,188 | 16,746 |
Net change in timing and other | (1,626) | 2,773 |
Fiscal year ending balance | 17,017 | 87,043 |
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 | 0 | 10,285 |
Net change in prices and production costs | 0 | 0 |
Revisions of previous quantity estimates | 0 | 0 |
Divestiture of reserves | 0 | (10,285) |
Changes in estimated future development costs | 0 | 0 |
Sales and transfers of oil and gas produced | 0 | 0 |
Previously estimated development cost incurred during the period | 0 | 0 |
Accretion of discount | 0 | 0 |
Net change in income taxes | 0 | 0 |
Net change in timing and other | 0 | 0 |
Fiscal year ending balance | $ 0 | $ 0 |
Oil and Gas Activities (Unaud86
Oil and Gas Activities (Unaudited) - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | $ 0 | $ 1,729 |
Unproved | 0 | 8 |
Exploration Costs | 1,563 | 3,484 |
Development Costs | 8,023 | 21,725 |
Total, including asset retirement obligation | 9,586 | 26,946 |
United States | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | 0 | 1,729 |
Unproved | 0 | 8 |
Exploration Costs | 1,079 | 541 |
Development Costs | 7,749 | 21,174 |
Total, including asset retirement obligation | 8,828 | 23,452 |
Australia | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | 0 | 0 |
Unproved | 0 | 0 |
Exploration Costs | 91 | 436 |
Development Costs | 0 | 0 |
Total, including asset retirement obligation | 91 | 436 |
United Kingdom | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | 0 | 0 |
Unproved | 0 | 0 |
Exploration Costs | 393 | 2,507 |
Development Costs | 274 | 551 |
Total, including asset retirement obligation | $ 667 | $ 3,058 |
Oil and Gas Activities (Unaud87
Oil and Gas Activities (Unaudited) - Net Changes in Capitalized Costs That Are Not Being Depleted Pending Determination of Proved Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ||
Fiscal year beginning balance | $ 21,845 | $ 6,234 |
Additions to capitalized costs | 8,321 | 21,511 |
Assets sold or held for sale | (680) | (5,258) |
Reclassified to producing properties | (8,973) | |
Charged to expense | (20) | (733) |
Exchange adjustment | (124) | 91 |
Fiscal year closing balance | 20,369 | 21,845 |
United States | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ||
Fiscal year beginning balance | 19,955 | 496 |
Additions to capitalized costs | 8,047 | 19,459 |
Assets sold or held for sale | 0 | 0 |
Reclassified to producing properties | (8,973) | |
Charged to expense | 0 | 0 |
Exchange adjustment | 0 | 0 |
Fiscal year closing balance | 19,029 | 19,955 |
Australia | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ||
Fiscal year beginning balance | 0 | 3,976 |
Additions to capitalized costs | 0 | 1,104 |
Assets sold or held for sale | 0 | (5,258) |
Reclassified to producing properties | 0 | |
Charged to expense | 0 | 0 |
Exchange adjustment | 0 | 178 |
Fiscal year closing balance | 0 | 0 |
United Kingdom | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Roll Forward] | ||
Fiscal year beginning balance | 1,890 | 1,762 |
Additions to capitalized costs | 274 | 948 |
Assets sold or held for sale | (680) | 0 |
Reclassified to producing properties | 0 | |
Charged to expense | (20) | (733) |
Exchange adjustment | (124) | (87) |
Fiscal year closing balance | $ 1,340 | $ 1,890 |
Oil and Gas Activities (Unaud88
Oil and Gas Activities (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||||
Exploration costs previously capitalized | $ 20,000 | $ 733,000 | ||
Costs capitalized for exploratory wells | 0 | |||
United Kingdom | ||||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||||
Exploration costs previously capitalized | $ 20,000 | $ 700,000 | ||
Capitalized costs related to petroleum license | $ 700,000 |
Quarterly Financial Data (Una89
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Impairment of proved oil and gas properties | $ 17,353 | $ 0 | ||||||||
Gross unrealized losses | $ (14,917) | $ (7,404) | (14,917) | (7,404) | ||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||
Revenue from oil production (1) | 916 | $ 688 | $ 1,265 | $ 1,590 | 1,927 | $ 1,907 | $ 1,633 | $ 2,134 | 4,459 | 7,601 |
Total operating expenses (2) | 21,459 | 4,863 | 4,153 | 4,280 | 5,092 | 4,927 | 4,193 | 5,737 | 34,755 | 19,949 |
Loss from continuing operations attributable to Magellan Petroleum Corporation | $ (35,543) | $ (2,115) | $ (2,715) | $ (2,627) | (43,000) | 15,509 | ||||
Loss from continuing operations | $ (679) | $ (3,072) | $ (2,610) | $ (3,681) | $ (43,411) | $ (10,042) | ||||
Net loss per basic common share from continuing operations (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.20) | $ (0.62) | $ (0.53) | $ (0.72) | $ (7.83) | $ (2.07) |
Net loss per diluted common share outstanding from continuing operations (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.20) | $ (0.62) | $ (0.53) | $ (0.72) | $ (7.83) | $ (2.07) |
Net (loss) income attributable to common stockholders | $ (35,986) | $ (2,552) | $ (3,145) | $ (3,057) | $ (493) | $ 24,089 | $ (4,533) | $ (5,250) | $ (44,740) | $ 13,813 |
Net (loss) income per basic common share outstanding attributable to common stockholders (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.08) | $ 4.25 | $ (0.80) | $ (0.93) | $ (7.83) | $ 2.44 |
Net (loss) income per diluted common share outstanding attributable to common stockholders (usd per share) | $ (6.29) | $ (0.45) | $ (0.55) | $ (0.54) | $ (0.08) | $ 4.25 | $ (0.80) | $ (0.93) | $ (7.83) | $ 2.44 |
Amadeus Basin | ||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Gain on sale of assets | $ 30,000 | |||||||||
Nautilus Poplar, LLC (NP) | ||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Other Income | $ 1,900 | |||||||||
Recurring | Contingent consideration payable | Level 3 | ||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||
Revision to estimate | $ (1,888) | $ (2,403) |