Stratex Oil & Gas Holdings, Inc. (STTX) today announced that it has made an offer to acquire Magellan Petroleum Corpotation (MPET) for $2.30/share in cash and stock.
Stratex is fully committed to pursuing this transaction totalling at approximately $124 million and has secured committed financing to complete the cash portion of the offer.
The offer was made in a letter to Magellan’s CEO with a copy to the Board of Directors yesterday after the CEOs of the two companies had previously discussed Stratex’s interest in acquiring Magellan, but had failed to come to any definitive understanding.
Stratex management believes the value of Magellan’s assets has not been realized in the public markets. Stephen Funk, CEO of Stratex, stated:
[quote style=”1″]We are excited about the increased acreage and production plus the growth potential and synergies that could be realized from this accretive transaction. Bringing together the complementary skills and strengths of both management teams would greatly benefit both Magellan and Stratex shareholders. We are confident that the Stratex/Magellan combination will create greater value than the two entities could each achieve separately.[/quote]
Magellan Petroleum Corporation
1775 Sherman Street
Denver, CO 80203
Tel: (720) 484-2400
Magellan Petroleum Corporation is an independent energy company engaged in the exploration, development, production, and sale of crude oil and natural gas. Magellan is an oil and gas holding company listed on the NASDAQ since 1972. The Company conducts its operations through two wholly owned subsidiaries, Nautilus Poplar LLC (“NP”), which owns Poplar, a highly attractive oil field in the Williston Basin, and Magellan Petroleum Australia Limited, (“MPAL”), a successful independent oil and gas company in Australia and the UK in existence since the 1960s.