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Document and Entity Information
3 Months Ended
Sep. 30, 2014
Nov. 06, 2014
Document And Entity Information [Abstract] ' '
Document Type '10-Q '
Document Period End Date Sep 30, 2014 '
Amendment Flag 'false '
Document Fiscal Period Focus 'Q1 '
Document Fiscal Year Focus '2015 '
Current Fiscal Year End Date '--06-30 '
Entity Central Index Key '0000061398 '
Entity Current Reporting Status 'Yes '
Entity Filer Category 'Smaller Reporting Company '
Entity Registrant Name 'MAGELLAN PETROLEUM CORP /DE/ '
Entity Voluntary Filers 'No '
Entity Well-known Seasoned Issuer 'Yes '
Entity Common Stock Shares Outstanding ' 45,701,107
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
CURRENT ASSETS: ' '
Cash and cash equivalents $ 10,773 $ 16,422
Securities available-for-sale 9,861 11,935
Accounts receivable — trade 700 886
Accounts receivable — working interest partners 47 0
Inventories 811 739
Prepaid and other assets 2,007 2,105
Total current assets 24,199 32,087
PROPERTY AND EQUIPMENT, NET (SUCCESSFUL EFFORTS METHOD): ' '
Proved oil and gas properties 29,506 29,335
Less accumulated depletion, depreciation, amortization, and accretion (3,733) (3,575)
Unproved oil and gas properties 538 550
Wells in progress 24,942 21,296
Land, buildings, and equipment (net of accumulated depreciation of $534 and $483 as of September 30, 2014, and June 30, 2014, respectively) 383 368
Net property and equipment 51,636 47,974
OTHER NON-CURRENT ASSETS: ' '
Goodwill 1,174 1,174
Other long term assets 200 200
Total other non-current assets 1,374 1,374
Total assets 77,209 81,435
CURRENT LIABILITIES: ' '
Current portion of asset retirement obligations 378 397
Accounts payable 4,287 3,586
Accrued and other liabilities 2,539 2,121
Accrued dividends 430 429
Contingent consideration payable 1,888 0
Total current liabilities 9,522 6,533
LONG TERM LIABILITIES: ' '
Asset retirement obligations 2,522 2,476
Contingent consideration payable 0 1,852
Other long term liabilities 118 118
Total long term liabilities 2,640 4,446
COMMITMENTS AND CONTINGENCIES '   '  
Series A convertible preferred stock (par value $0.01 per share): Authorized 50,000,000 shares, issued 20,089,436 as of September 30, 2014, and June 30, 2014; liquidation preference of $28,220 as of September 30, 2014, and June 30, 2014 24,539 24,539
EQUITY: ' '
Common stock (par value $0.01 per share): Authorized 300,000,000 shares, issued, 55,178,558 and 55,004,838 as of September 30, 2014, and June 30, 2014, respectively 552 550
Treasury stock (at cost): 9,425,114 shares as of September 30, 2014, and June 30, 2014 (9,344) (9,344)
Capital in excess of par value 93,073 92,986
Accumulated deficit (39,323) (36,266)
Accumulated other comprehensive loss (4,450) (2,009)
Total equity attributable to Magellan Petroleum Corporation 40,508 45,917
Total liabilities, preferred stock and equity $ 77,209 $ 81,435
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Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Statement of Financial Position [Abstract] ' '
Accumulated depreciation $ 534 $ 483
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares outstanding 20,089,436 20,089,436
Preferred stock, liquidation preference $ 28,220 $ 28,220
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares, issued 55,178,558 55,004,838
Treasury stock, shares 9,425,114 9,425,114
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Consolidated Statement of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Income Statement [Abstract] ' '
REVENUE FROM OIL PRODUCTION $ 1,590 $ 2,134
OPERATING EXPENSES: ' '
Lease operating 1,214 2,316
Depletion, depreciation, amortization, and accretion 255 150
Exploration 422 624
General and administrative 2,389 2,647
Total operating expenses 4,280 5,737
Loss from operations (2,690) (3,603)
OTHER INCOME (EXPENSE): ' '
Net interest expense 0 (18)
Other income (expense) 63 (60)
Total other income (expense) 63 (78)
Loss from continuing operations (2,627) (3,681)
Loss from discontinued operations, net of tax 0 (1,154)
Gain on disposal of discontinued operations, net of tax 0 0
Net loss from discontinued operations 0 (1,154)
Net loss attributable to Magellan Petroleum Corporation (2,627) (4,835)
Preferred stock dividends (430) (415)
Net loss attributable to common stockholders $ (3,057) $ (5,250)
Loss per common share: ' '
Weighted average number of basic shares outstanding 45,652,994 45,348,840
Weighted average number of diluted shares outstanding 45,652,994 45,348,840
Basic loss per common share: ' '
Loss from continuing operations (in dollars per share) $ (0.07) $ (0.09)
Net income (loss) from discontinued operations (in dollars per share) $ 0 $ (0.03)
Net income (loss) attributable to common stockholders (in dollars per share) $ (0.07) $ (0.12)
Diluted loss per common share: ' '
Loss from continuing operations (in dollars per share) $ (0.07) $ (0.09)
Net income (loss) from discontinued operations (in dollars per share) $ 0 $ (0.03)
Net income (loss) attributable to common stockholders (in dollars per share) $ (0.07) $ (0.12)
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Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract] ' '
Net loss $ (2,627) $ (4,835)
Other comprehensive income (loss), net of tax: ' '
Foreign currency translation gain (loss) during the period (1,216) 169
Unrealized holding gain (loss) on securities available-for-sale (1,225) 25
Other comprehensive (loss) income, net of tax (2,441) 194
Comprehensive income (loss) attributable to Magellan Petroleum Corporation $ (5,068) $ (4,641)
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Consolidated Statement of Changes in Equity (USD $)
In Thousands, unless otherwise specified
Total
Common Stock
Treasury Stock
Capital in Excess of Par Value
Accumulated Deficit
Accumulated Other Comprehensive Income
Beginning balance at Jun. 30, 2014 $ 45,917 $ 550 $ (9,344) $ 92,986 $ (36,266) $ (2,009)
Increase (Decrease) in Stockholders' Equity [Roll Forward] ' ' ' ' ' '
Net loss (2,627) ' ' ' (2,627) '
Other comprehensive loss, net of tax (2,441) ' ' ' ' (2,441)
Stock and stock based compensation 408 1 ' 407 ' '
Executive forfeiture of options upon resignation (320) ' ' ' ' '
Executive forfeiture of restricted stock upon resignation (44) (1) ' (43) ' '
Net shares repurchased for employee tax costs upon vesting of restricted stock (104) ' ' ' ' '
Stock options exercised, net of shares withheld to satisfy employee tax obligations 149 2 ' 147 ' '
Preferred stock dividend (430) ' ' ' (430) '
Ending balance at Sep. 30, 2014 $ 40,508 $ 552 $ (9,344) $ 93,073 $ (39,323) $ (4,450)
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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
OPERATING ACTIVITIES: ' '
Net loss attributable to Magellan Petroleum Corporation $ (2,627) $ (4,835)
Adjustments to reconcile net income (loss) to net cash used in operating activities: ' '
Depletion, depreciation, amortization, and accretion 255 169
Increase in fair value of contingent consideration payable 36 77
Stock compensation expense 44 657
Severance benefit costs 475 0
Net changes in operating assets and liabilities: ' '
Accounts receivable 135 (165)
Inventories (89) 6
Prepayments and other current assets 83 100
Accounts payable and accrued liabilities (410) 1,113
Net cash used in operating activities of continuing operations (2,098) (2,878)
INVESTING ACTIVITIES: ' '
Additions to property and equipment (2,849) (3,089)
Net cash used in investing activities of continuing operations (2,849) (3,089)
FINANCING ACTIVITIES: ' '
Repurchase of common stock (104) 0
Proceeds from issuance of common stock 149 0
Payment of preferred stock dividend (429) 0
Short term debt issuances 0 500
Short term debt repayments 0 (108)
Net cash (used in) provided by financing activities of continuing operations (384) 392
CASH FLOWS FROM DISCONTINUED OPERATIONS: ' '
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities of discontinued operations 0 43
Net cash used in investing activities of discontinued operations 0 (22)
Net cash provided by (used in) discontinued operations 0 21
Effect of exchange rate changes on cash and cash equivalents (318) 86
Net decrease in cash and cash equivalents (5,649) (5,468)
Cash and cash equivalents at beginning of period 16,422 32,469
CASH AND CASH EQUIVALENTS AT END OF PERIOD 10,773 27,001
Supplemental schedule of non-cash activities: ' '
Unrealized holding loss and foreign currency translation loss on securities available-for-sale (2,074) 23
Amounts in accounts payable and accrued liabilities related to property and equipment 1,098 4,590
Accrued preferred stock dividends 430 415
Amounts in accrued or other liabilities related to Sopak 1,597 1,493
Amounts in prepaid and other assets related to Sopak $ 1,597 $ 1,493
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Basis of Presentation
3 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract] '
Basis Of Presentation '
Note 1 - Basis of Presentation
Description of Operations
Magellan Petroleum Corporation (the "Company" or "Magellan" or "we") is an independent oil and gas exploration and production company focused on the development of a CO2-enhanced oil recovery ("CO2-EOR") program at Poplar Dome ("Poplar") in eastern Montana and the exploration of conventional and unconventional hydrocarbon resources in the Weald Basin, located in Sussex County, England, onshore United Kingdom ("UK"). Magellan also owns an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farmout; and an 11% ownership stake in Central Petroleum Limited (ASX: CTP), a Brisbane based exploration and production company that operates one of the largest holdings of prospective onshore acreage in Australia. The Company conducts its operations through three wholly owned subsidiaries corresponding to the geographic areas in which the Company operates: Nautilus Poplar LLC ("NP") in the US, Magellan Petroleum (UK) Limited ("MPUK") in the UK, and Magellan Petroleum Australia Pty Ltd ("MPA") in Australia.

Basis of Presentation
The accompanying unaudited condensed 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") for interim financial information, and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). Accordingly, these interim unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete annual period financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. All intercompany transactions have been eliminated. Operating results for the three months ended September 30, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. This report should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (the "2014 Form 10-K"). All amounts presented are in US dollars, unless otherwise noted. Amounts expressed in Australian currency are indicated as "AUD."
Certain amounts in our prior period financial statements have been reclassified to conform to the current period presentation.
    
Use of Estimates
The preparation of the unaudited condensed 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 unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses, including stock-based compensation expense, during the reporting periods. 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 unaudited condensed consolidated statements of operations and cash flows are translated at average exchange rates during the reporting periods. Resulting translation adjustments are recorded in accumulated other comprehensive income, a separate component of stockholders' equity. A component of accumulated other comprehensive income will be released into income when the Company executes a partial or complete sale of an investment in a foreign subsidiary or a group of assets of a foreign subsidiary considered a business and/or when the Company no longer holds a controlling financial interest in a foreign subsidiary or group of assets of a foreign subsidiary considered a business.
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in foreign currency transaction gains and losses that are reflected in results of operations as unrealized (based on period end translation) or realized (upon settlement of the transactions) and reported under general and administrative expenses in the consolidated statements of operations.

Securities available-for-sale
Securities available-for-sale are comprised of investments in publicly traded securities and are carried at quoted market prices. Unrealized gains and losses are excluded from earnings and recorded as a component of accumulated other comprehensive income in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. As a result of this review, no impairment was recorded during the three months ended September 30, 2014, or 2013, respectively.

Oil and Gas Exploration and Production Activities

The Company follows the successful efforts method of accounting for its oil and gas exploration and production activities. Under this method, all property acquisition costs, and costs of exploratory and development wells are capitalized until a determination is made that the well has found proved reserves or is deemed noncommercial. If an exploratory well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs, geological and geophysical expenses. Noncommercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred.

Depreciation, depletion, and amortization ("DD&A") of capitalized costs related to proved oil and gas properties is calculated on a property-by-property basis using the units-of-production method based upon proved reserves. The computation of DD&A takes into consideration restoration, dismantlement, and abandonment costs as well as the anticipated proceeds from salvaging equipment. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses.

The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement, and no gain or loss is recognized as long as the treatment does not significantly affect the units-of-production depletion rate. A gain or loss is recognized for all other sales of producing properties.

The Company reviews its proved oil and gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future cash flows of its oil and gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to fair value. The factors used to determine fair value include, but are not limited to, recent sales prices of comparable properties, the present value of estimated future cash flows, net of estimated operating and development costs, using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected.

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 

Revenue Recognition

The Company derives revenue primarily from the sale of produced oil. Oil revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability of the revenue is probable. Transportation costs are included in production costs.

Major Customers

The Company's consolidated oil production revenue is derived from its NP segment and is generated from a single customer for the three months ended September 30, 2014 and 2013.

Stock Based Compensation
Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options are expensed on a straight-line basis over the vesting period. Market based options are expensed based on a graded amortized method, the expense is recognized if the derived service period is satisfied, even if the market condition is not achieved. Performance based options ("PBOs") are recognized when the achievement of the performance conditions is considered probable. Accordingly, PBOs are expensed over the period of time the performance condition is expected to be achieved. Management re-assesses whether achievement of performance conditions is probable at the end of each reporting period. If changes in the estimated outcome of the performance conditions affect the quantity of the awards expected to vest, the cumulative effect of the change is recognized in the period of change.
The fair value of the stock options is determined on the grant date and is affected by our stock price and other assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the term of the awards, risk free interest rates, expected dividends, and the expected option exercise term. The Company estimates the fair value of PBOs and time based stock options using the Black-Scholes-Merton pricing model. The simplified method is used to estimate the expected term of stock options due to a lack of related historical data regarding exercise, cancellation, and forfeiture. For market based stock options, the fair value is estimated using Monte Carlo simulation techniques.
    
Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net income (loss).

Loss per Common Share

Income and losses per common share are based upon the weighted average number of common and common equivalent shares outstanding during the period. The effect of potential dilutive securities in the determinations of diluted earnings per share are the dilutive effect of stock options, non-vested restricted stock, and the shares of Series A convertible preferred stock.

The potential dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potential dilutive impact of the shares of Series A convertible preferred stock is determined using the "if-converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing dilutive shares if the effect would be antidilutive. The Series A convertible preferred stock is convertible at a rate of one common share to one preferred share. We did not include any stock options, non-vested restricted stock, or common stock issuable upon the conversion of the Series A convertible preferred stock in the calculation of diluted loss per share during the three months ended September 30, 2014 and 2013, respectively, as they would be antidilutive.

Segment Information
As of June 30, 2013, the Company determined, based on the criteria of ASC Topic 280, that it operates in three segments, NP, MPUK, and MPA, as well as a head office, Magellan ("Corporate"), which is treated as a cost center.
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, and MPA, as well as Corporate. For information pertaining to our reporting segments, see Note 13 - Segment Information, and Part II, Item 8 of our 2014 Form 10-K.

Recently Issued Accounting Standards
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern. The objective of ASU 2014-15 is to provide 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 does not expect the adoption of this standard to have a significant impact on its condensed consolidated financial statements.
    
In June 2014, the FASB issued ASU No. 2014-12, “Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires a reporting entity to treat a performance target 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 is currently evaluating which transition approach to use and the impact of the adoption of this standard on its condensed consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2018; early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its condensed 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 condensed consolidated financial statements.

In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective July 1, 2013. The Company's adoption of this standard did not have a significant impact on its condensed consolidated financial statements.
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Sale of Amadeus Basin Assets
3 Months Ended
Sep. 30, 2014
Extractive Industries [Abstract] '
Sale of Amadeus Basin Assets '
Note 2 - Sale of Amadeus Basin Assets
On March 31, 2014 (the "Central Closing Date"), pursuant to the Share Sale and Purchase Deed dated February 17, 2014 (the "Sale Deed"), the Company sold its Amadeus Basin assets, the Palm Valley and Dingo gas fields ("Palm Valley" and "Dingo," respectively), to Central Petroleum Limited ("Central") through the sale of the Company's wholly owned subsidiary, Magellan Petroleum (N.T.) Pty. Ltd, to Central's wholly owned subsidiary Central Petroleum PV Pty. Ltd ("Central PV"). In exchange for the assets, on March 31, 2014, Central paid to Magellan (i) AUD $15.0 million, and (ii) 39.5 million newly issued shares of Central stock (ASX: CTP), equivalent to an ownership interest in Central of approximately 11%. Central also made a second and final cash payment of AUD $5.0 million to Magellan on April 15, 2014. The Sale Deed provided for certain customary purchase price adjustments, including the payment by Central of capital expenditures incurred by Magellan during the period from October 1, 2013, to March 31, 2014, less AUD $485 thousand.
The Sale Deed also provides that the Company is entitled to receive 25% of the revenues generated at the Palm Valley gas field from gas sales when the volume-weighted gas price realized at Palm Valley exceeds AUD $5.00/Gigajoule ("GJ") and AUD $6.00/GJ for the first 10 years following the Central Closing Date and for the following 5 years, respectively, with such prices to be escalated in accordance with the Australian CPI. Between the third and fifth anniversaries of the Central Closing Date, inclusive, the Company may seek from Central a one-time payment (the "Bonus Discharge Amount") corresponding to the present value, assuming an annual discount rate of 10%, of any expected remaining bonus payments in exchange for foregoing future bonus payments. If the Company receives the Bonus Discharge Amount, bonus payments and the Bonus Discharge Amount together may not exceed AUD $7.0 million. The Company also retained its rights to receive any and all bonuses (the "Mereenie Bonus") payable by Santos Ltd ("Santos") and contingent upon production at the Mereenie oil and gas field achieving certain threshold levels. The Mereenie Bonus was established in 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. For additional information, see Note 3 - Discontinued Operations.
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Discontinued Operations
3 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract] '
Discontinued Operations '
Note 3 - Discontinued Operations
As discussed in detail in Note 2, on March 31, 2014, pursuant to the Sale Deed, the Company completed the sale of Palm Valley and Dingo to Central PV. The assets of Palm Valley and Dingo were previously reported under the MPA segment. Accordingly, MPA's results of operations associated with this sale were reclassified to discontinued operations in the third quarter of fiscal year 2014. Prior period amounts related to discontinued operations in the unaudited condensed consolidated statement of operations and statement of cash flows have also been reclassified to conform to the current period presentation. Summarized results of the Company's discontinued operations are as follows:
 
 
THREE MONTHS ENDED
 
 
September 30,
 
 
2014
 
2013
 
(In thousands)
Revenue
 
$

 
$
221

Net loss from discontinued operations
 
$

 
$
(1,154
)
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Securities Available-for-Sale
3 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract] '
Securities Available-for-Sale '
Note 4 - Securities Available-for-Sale
The following table presents the amortized cost, gross unrealized gains, gross unrealized losses, and fair market value of available-for-sale equity securities as follows:
 
September 30, 2014
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair
value
 
(In thousands)
Equity securities
$
19,339

 
$

 
$
(9,478
)
 
$
9,861

 
 
 
 
 
 
 
 
 
June 30, 2014
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair
value
 
(In thousands)
Equity securities
$
19,339

 
$

 
$
(7,404
)
 
$
11,935

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Debt
3 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract] '
Debt '
Note 5 - Debt
Note Payable. The outstanding principal of a $1.7 million note payable by NP, re-issued in January 2011 (the "Note Payable"), was fully amortized as of June 30, 2014.

Line of Credit. On September 17, 2014, NP entered into a senior secured $8.0 million revolving line of credit note (the "LCN") with West Texas State Bank. The LCN will mature on September 30, 2015. The LCN is subject to quarterly floating interest payments based on the Prime Rate (currently approximately 3.25%) subject to a floor rate of 3.25%. The LCN is secured by substantially all of NP's assets, including a first lien on NP's oil and gas leases from the surface to the top of the Bakken but excluding any rights to assets within or below the Bakken. Magellan Petroleum Corporation ("MPC"), the parent entity of NP, provided a guarantee of the LCN secured by a pledge of its membership interest in NP. MPC and NP are subject to certain customary restrictive covenants under the terms of this loan.

As of September 30, 2014, the outstanding balance on the LCN was $0. As of November 6, 2014, the outstanding balance on the LCN was $2.0 million.
    
The Company also maintains a $25 thousand letter of credit with Jonah Bank of Wyoming in favor of the Bureau of Land Management, which is collateralized by a cash deposit in an equal amount with the bank.
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Asset Retirement Obligations
3 Months Ended
Sep. 30, 2014
Asset Retirement Obligation Disclosure [Abstract] '
Asset Retirement Obligations '
Note 6 - Asset Retirement Obligations
The estimated valuation of asset retirement obligations ("AROs") is based on the Company's historical experience and management's best estimate of plugging and abandonment costs by field. Assumptions and judgments made by management when assessing an ARO include: (i) the existence of a legal obligation; (ii) estimated probabilities, amounts, and timing of settlements; (iii) the credit-adjusted risk-free rate to be used; and (iv) inflation rates. Accretion expense is recorded under depletion, depreciation, amortization, and accretion in the unaudited condensed 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 ARO activity for the three months ended September 30, 2014:
 
Total
 
(In thousands)
Fiscal year opening balance

$
2,873

Accretion expense
46

Effect of exchange rate changes
(19
)
Balance at September 30, 2014
2,900

Less current asset retirement obligation
378

Long term asset retirement obligation
$
2,522

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Fair Value Measurements
3 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract] '
Fair Value Measurements '
Note 7 - Fair Value Measurements
The Company follows authoritative guidance related to fair value measurement and disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement using market participant assumptions at the measurement date. 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, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3: Significant 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 three months ended September 30, 2014, and 2013, there have been no transfers in or out of Level 1, Level 2, or Level 3.

Assets and liabilities measured on a recurring basis
The Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, are carried at cost, which approximates fair value due to the short term maturity of these instruments. The recorded values of the LCN and Note Payable (see Note 5 - Debt) approximate fair value due to their variable interest rate structures.
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:
 
September 30, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Securities available-for-sale
$
9,861

 
$

 
$

 
$
9,861

 


 


 


 


Liabilities:
 
 
 
 
 
 
 
Contingent consideration payable (1)
$

 
$

 
$
1,888

 
$
1,888

 
 
 
 
 
 
 
 
 
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)
$

 
$

 
$
1,852

 
$
1,852

(1) See Note 15 - Commitments and Contingencies, below for additional information about this item.
The contingent consideration payable is a standalone liability that is measured at fair value on a recurring basis for which there is no available quoted market price, principal market, or market participants. The inputs for this instrument are unobservable and therefore classified as Level 3 inputs. The calculation of this liability is a significant management estimate and uses drilling and production projections consistent with the Company's reserve report for NP to estimate future production bonus payments and a discount rate that is reflective of the Company's credit adjusted borrowing rate. Inputs are reviewed by management on an annual basis and the liability is estimated by converting estimated future production bonus payments to a single net present value using a discounted cash flow model. Payments of future production bonuses are sensitive to Poplar's 60 days rolling gross production average. The contingent consideration payable would increase with significant production increases and/or a reduction in the discount rate.
The following table presents information about significant unobservable inputs to the Company's Level 3 financial liability measured at fair value on a recurring basis as follows:
Description
 
Valuation technique
 
Significant unobservable inputs
 
September 30,
2014
 
June 30,
2014
Contingent consideration payable
 
Discounted cash flow model
 
Discount rate
 
8.0%
 
8.0%
 
 
 
 
First production payout
 
June 30, 2015
 
June 30, 2015
 
 
 
 
Second production payout
 
N/A
 
N/A

Adjustments to the fair value of the contingent consideration payable are recorded in the unaudited condensed consolidated statements of operations under net interest income. The following table presents a roll forward of the contingent consideration payable for the three months ended September 30, 2014:
 
Total
 
(In thousands)
Fiscal year opening balance
$
1,852

Accretion of contingent consideration payable
36

Balance at September 30, 2014
$
1,888


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 annually or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. Fair value is estimated using expected undiscounted future cash flows from oil and gas properties. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and are also classified within Level 3. For the three months ended September 30, 2014, no events or circumstances were identified that would indicate that an impairment of our oil and gas properties has occurred.
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Income Taxes
3 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract] '
Income Taxes '
Note 8 - Income Taxes
The Company has estimated the applicable effective tax rate expected for the full fiscal year. The Company's effective tax rate used to estimate income taxes on a current year-to-date basis for the three months ended September 30, 2014, and 2013, is 0% and 0%, respectively. Deferred tax assets ("DTAs") are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating losses and foreign tax credit carry forwards. A valuation allowance reduces DTAs to the estimated realizable value, which is the amount of DTAs management believes is "more-likely-than-not" to be realized in future periods.
We review our DTAs and valuation allowance on a quarterly basis. As part of our review, we consider positive and negative evidence, including cumulative results in recent years. Consistent with the position at June 30, 2014, the Company maintains a full valuation allowance recorded against all DTAs. The Company therefore had no recorded DTAs as of September 30, 2014. We anticipate that we will continue to record a valuation allowance against our DTAs in all jurisdictions of the Company until such time as we are able to determine that it is "more-likely-than-not" that those DTAs will be realized.
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Stock-Based Compensation
3 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] '
Stock-Based Compensation '
Note 9 - Stock Based Compensation
The 2012 Stock Incentive Plan
On January 16, 2013, the Company's shareholders approved the Magellan Petroleum Corporation 2012 Omnibus Incentive Compensation Plan (the "2012 Stock Incentive Plan"). The 2012 Stock Incentive Plan replaced the Company's 1998 Stock Incentive Plan (the "1998 Stock Plan"). The 2012 Stock Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock and/or restricted stock units, performance shares and/or performance units, incentive awards, cash awards, and other stock based awards to employees, including officers, directors, and consultants of the Company (or subsidiaries of the Company) who are selected to receive incentive compensation awards by the Compensation, Nominating and Governance Committee (the "CNG Committee") of the Board of Directors of the Company (the "Board"), which is the plan administrator for the 2012 Stock Incentive Plan. The stated maximum number of shares of the Company's common stock authorized for awards under the 2012 Stock Incentive Plan is 5,000,000 shares plus the remaining number of shares under the 1998 Stock Plan immediately before the effective date of the 2012 Stock Incentive Plan, which was 288,435 as of January 15, 2013. The maximum aggregate annual number of options or stock appreciation rights that may be granted to one participant is 1,000,000, and the maximum annual number of performance shares, performance units, restricted stock, or restricted stock units that may be granted to any one participant is 500,000. The maximum term of the 2012 Stock Incentive Plan is ten years.

Stock Option Grants
Under the 2012 Stock Incentive Plan, stock option grants may contain time based, performance based, or market based vesting provisions. Performance metrics used to measure the potential vesting of the PBOs granted in October 2013 consist of: (i) completing the drilling of the CO2-EOR pilot program at Poplar (weighted 10%); (ii) Board approval of a full field CO2-EOR development project at Poplar (weighted 40%); (iii) sale of substantially all of the Amadeus Basin assets (weighted 20%); (iv) approval of a farmout agreement or the ability to participate in drilling one well in the Weald Basin with internally developed funding, including proceeds from a sale of assets (weighted 20%); and (v) approval and execution of a farmout agreement for drilling one well in the Bonaparte Basin (weighted 10%). Vesting of the market based stock options granted in October 2013 is subject to the Company maintaining a $2.35 per share closing price for 10 consecutive trading days and a median stock price of $2.35 over a period of 90 days. As of September 30, 2014, performance metrics (i), (iii) and (iv) were met. During each of the three months ended September 30, 2014 and September 30, 2013, the Company granted no stock options.
During the three months ended September 30, 2014288,541 stock options were exercised, resulting in the issuance of 225,235 shares of common stock, which number is net of shares withheld to satisfy certain employee tax and exercise price obligations. During the three months ended September 30, 2013, no stock options were exercised. During the three months ended September 30, 2014, 980,210 stock options were forfeited. There were no forfeitures during the three months ended September 30, 2013.
As of September 30, 2014, 1,728,124 stock options with market based vesting provisions or PBOs had not vested, and 819,323 options, including forfeited options, remained available for future issuance. Stock options outstanding have expiration dates ranging from August 17, 2015, to October 15, 2023. See Note 18 - Subsequent Events for information on activities related to stock options subsequent to September 30, 2014.
The following table summarizes the stock option activity for the three months ended September 30, 2014:
 
Number of
Shares
 
WAEPS (1)
Fiscal year opening balance
10,492,291

 
$1.26
Granted

 
$0.00
Exercised
(288,541
)
 
$1.14
Forfeited
(980,210
)
 
$1.08
Balance at September 30, 2014
9,223,540

 
$1.28
Weighted average remaining contractual term
4.8

years
(1) Weighted average exercise price per share.

Stock Compensation Expense
The Company recorded $44 thousand of related stock compensation expense for the three months ended September 30, 2014, and $0.7 million of related stock compensation expense for the three months ended September 30, 2013. Stock compensation expense is included in general and administrative expense in the unaudited condensed consolidated statements of operations. The $44 thousand of stock compensation expense for the three months ended September 30, 2014 consisted of expense amortization related to prior period awards of $163 thousand, and stock awards and forfeitures as described below. As of September 30, 2014, the unrecorded expected future compensation expense related to stock option awards was $0.8 million.

Stock Awards
The Company's compensation policy is designed to provide the Company's non-employee directors with a portion of their annual base Board service compensation in the form of equity. On July 1, 2014, the Company issued a total of 96,330 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 21,875 shares. Total compensation expense from the issuance of non-employee director compensation for the three months ended September 30, 2014 was $245 thousand.

Forfeitures
As a result of the resignation of an executive officer of the Company effective August 15, 2014, 980,210 unvested stock options and 100,000 unvested shares of restricted stock that were previously granted to such officer were forfeited. The forfeiture of unvested options and unvested restricted stock resulted in the reversal of previously recorded compensation expense of $320 thousand and $44 thousand, respectively, which is recorded as an offset to general and administrative expense during the three months ended September 30, 2014 in the accompanying unaudited condensed consolidated statement of operations.
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Preferred Stock
3 Months Ended
Sep. 30, 2014
Equity [Abstract] '
Preferred Stock '
Note 10 - Preferred Stock
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, at an initial conversion price equal to the Purchase Price. Please refer to Note 10 in the Company's 2014 Form 10-K for further information regarding key terms and registration rights applicable to the Company's Series A Convertible 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. No accretion was recorded during the three months ended September 30, 2014 nor during the year ended June 30, 2014.
For the three months ended September 30, 2014, the Company recorded preferred stock dividends of $0.4 million related to the Series A Preferred Stock. The preferred stock dividend for the three months ended September 30, 2014, will be paid in cash. Accordingly an accrual of $0.4 million was recorded for unpaid cash dividends as of September 30, 2014. In addition, during the three months ended September 30, 2014, the Company paid the cash dividend accrued at June 30, 2014 in the amount of $0.4 million.

The activity related to the Series A Preferred Stock for the three months ended September 30, 2014, and the fiscal year ended June 30, 2014, is as follows:
 
THREE MONTHS ENDED
 
FISCAL YEAR ENDED
 
September 30, 2014
 
June 30, 2014
 
Number of shares
 
Amount
 
Number of shares
 
Amount
 
(In thousands, except share amounts)
Fiscal year opening balance
20,089,436

 
$
24,539

 
19,239,734

 
$
23,502

PIK dividend shares issued, for previously accrued dividend

 

 
164,607

 
202

Current year PIK dividend shares issued

 

 
685,095

 
835

Balance at end of period
20,089,436

 
$
24,539

 
20,089,436

 
$
24,539

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Stockholders' Equity
3 Months Ended
Sep. 30, 2014
Equity [Abstract] '
Stockholders' Equity '
Note 11 - Stockholders' Equity
Treasury Stock
On September 24, 2012, the Company announced that its Board had approved a stock repurchase program authorizing the Company to repurchase up to a total value of $2.0 million in shares of its Common Stock. During November 2012, the Company repurchased 149,539 shares pursuant to this program. The authorization expired on August 21, 2014, with no further repurchases of stock.
On July 1, 2014, upon the vesting of 150,000 shares of restricted stock previously granted to executives of the Company and pursuant to the cashless exercise provisions of the Company's restricted stock, the Company withheld on a cashless basis 47,920 shares to settle withholding taxes. Following their withholding, the shares were immediately canceled.
All repurchased shares of Common Stock are currently being held in treasury at cost, including direct issuance cost. The following table summarizes the Company's treasury stock activity as follows:
 
THREE MONTHS ENDED
 
FISCAL YEAR ENDED
 
September 30, 2014
 
June 30, 2014
 
Number of shares
 
Amount
 
Number of shares
 
Amount
 
(In thousands, except share amounts)
Fiscal year opening balance
9,425,114

 
$
9,344

 
9,414,176

 
$
9,333

Repurchases through the stock repurchase program

 

 

 

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
47,920

 
104

 
10,938

 
11

Cancellation of shares repurchased
(47,920
)
 
(104
)
 

 

Balance at end of period
9,425,114


$
9,344

 
9,425,114

 
$
9,344

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Loss Per Common Share
3 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract] '
Loss Per Common Share '
Note 12 - Loss Per Common Share
The following table summarizes the computation of basic and diluted earnings per share:
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
 
(In thousands, except share and per share amounts)
Loss from continuing operations
$
(2,627
)
 
$
(3,681
)
Preferred stock dividend
(430
)
 
(415
)
Net loss from continuing operations, including preferred stock dividends
(3,057
)
 
(4,096
)
Net loss from discontinued operations

 
(1,154
)
Net loss attributable to common stockholders
$
(3,057
)
 
$
(5,250
)
 
 
 
 
Basic weighted average shares outstanding
45,652,994

 
45,348,840

Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1)

 

Diluted weighted average common shares outstanding
45,652,994

 
45,348,840

 
 
 
 
Basic loss per common share:
 
 
 
Net loss from continuing operations, including preferred stock dividends

$(0.07)
 
$(0.09)
Net loss from discontinued operations
$0.00
 
$(0.03)
Net loss attributable to common stockholders
$(0.07)
 
$(0.12)
 
 
 
 
Diluted loss per common share:
 
 
 
Net loss from continuing operations, including preferred stock dividends

$(0.07)
 
$(0.09)
Net loss from discontinued operations
$0.00
 
$(0.03)
Net loss attributable to common stockholders
$(0.07)
 
$(0.12)
(1) All diluted earnings per share calculations are dictated by the results from continuing operations. Accordingly there were no dilutive effects on loss per share in the periods presented.
There is no dilutive effect on earnings per share in periods with net losses. Stock options or shares of Common Stock issuable upon the conversion of the Series A Preferred Stock were not considered in the calculations of diluted weighted average common shares outstanding as they would be antidilutive. Potentially dilutive securities excluded from the calculation of diluted shares outstanding in periods with net losses are as follows:
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
In-the-money stock options
6,885,105

 
157,500

Non-vested restricted stock
200,000

 

Convertible preferred stock
20,089,436

 
19,743,917

Total
27,174,541

 
19,901,417

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Segment Information
3 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract] '
Segment Information '
Note 13 - Segment Information
The Company conducts its operations through three wholly owned subsidiaries: NP, which operates in the US; MPUK, which includes our operations in the UK; and MPA, which is primarily active in Australia. Oversight for these subsidiaries is provided by Corporate which is treated as a cost center.
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
 
(In thousands)
Revenue from oil production:
 
 
 
NP
$
1,590

 
$
2,134

 
 
 
 
Net income (loss) from continuing operations:
 
 
 
NP
$
113

 
$
(562
)
MPUK
(432
)
 
(632
)
MPA
(635
)
 
63

Corporate
(1,673
)
 
(2,546
)
Inter-segment elimination

 
(4
)
Consolidated net loss from continuing operations
$
(2,627
)
 
$
(3,681
)
 
 
 
 
 
 
 
 
 
September 30,
2014
 
June 30,
2014
 
(In thousands)
Total assets:
 
 
 
NP
$
27,558

 
$
27,299

MPUK
4,203

 
4,486

MPA
11,837

 
14,073

Corporate
110,090

 
111,113

Inter-segment elimination (1)
(76,479
)
 
(75,536
)
Total assets of continuing operations
$
77,209

 
$
81,435

(1) Asset inter-segment eliminations are primarily derived from investments in subsidiaries.
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Oil and Gas Activities
3 Months Ended
Sep. 30, 2014
Oil and Gas Exploration and Production Industries Disclosures [Abstract] '
Oil and Gas Activities '
Note 14 - Oil and Gas Activities
The following table presents the capitalized costs under the successful efforts method for oil and gas properties as of:
 
September 30,
2014
 
June 30,
2014
 
(In thousands)
Proved oil and gas properties:
 
 
 
United States
$
29,506

 
$
29,335

Less accumulated depletion, depreciation, and amortization
(3,733
)
 
(3,575
)
Total net proved oil and gas properties
$
25,773

 
$
25,760

 
 
 
 
Unproved oil and gas properties:
 
 
 
United Kingdom
$
269

 
$
282

United States
268

 
268

Australia
1

 

Total unproved oil and gas properties
$
538

 
$
550

 
 
 
 
Wells in Progress:
 
 
 
United Kingdom
$
1,815

 
$
1,610

United States (1)
23,127

 
19,686

Total wells in progress
$
24,942

 
$
21,296

(1) The Company began implementing a CO2-enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014.
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Commitments and Contingencies
3 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract] '
Commitments and Contingencies '
Note 15 - Commitments and Contingencies
Refer to Note 14 - Commitments and Contingencies of the Notes to the Consolidated Financial Statements in our 2014 Form 10-K for information on all commitments.
Contingent production payments. In September 2011, the Company entered into a Purchase and Sale Agreement (the "Nautilus PSA") among the Company and the non-controlling interest owners of NP for the Company's acquisition of the sellers' interests in NP (the "Nautilus Transaction"). The Nautilus PSA provides for potential future contingent production payments, payable by the Company in cash to the sellers, of up to a total of $5.0 million if certain increased average daily production rates for the underlying properties are achieved. J. Thomas Wilson, a director and executive officer of the Company, has an approximately 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 Transaction.
Sopak Collateral Agreement. On January 14, 2013, the Company entered into a Collateral Purchase Agreement (the "Collateral Agreement") with Sopak AG, a Swiss subsidiary of Glencore International plc ("Sopak"), pursuant to which the Company agreed to purchase: (i) 9,264,637 shares of the Company's Common Stock and (ii) a warrant granting Sopak the right to purchase from the Company an additional 4,347,826 shares of Common Stock. The Collateral Agreement was subsequently amended on January 15, 2013, and completed on January 16, 2013. The Company has estimated that there is the potential for a statutory liability of approximately $1.6 million related to US Federal tax withholdings and related penalties and interest related to the Collateral Agreement. As a result, we have recorded a total liability of $1.6 million as of September 30, 2014, and June 30, 2014, under accrued and other liabilities in the unaudited condensed consolidated balance sheets included in this report. The Company has a legally enforceable right to collect from Sopak any amounts owed to the IRS as a result of the Collateral Agreement. As a result, we have recorded a corresponding receivable of $1.6 million as of September 30, 2014, and June 30, 2014, under prepaid and other assets in the unaudited condensed consolidated balance sheets.
Broadford Bridge-1 Well. Subsequent to September 30, 2014, the Company received a cash call from Celtique in the amount of $2.0 million against a previously approved authorization for expenditure ("AFE") related to the Broadford Bridge-1 well currently expected to be spud in the second quarter of calendar year 2015. The Company may fund this cash call from its existing cash balances, but is also considering funding this cash call and future obligations under this AFE through other means, including a potential partial or full farmout transaction related to this well.
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Related Parties Transactions
3 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract] '
Related Party Transactions '
Note 16 - Related Party Transactions

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 $81 thousand and $40 thousand of consulting fees related to Devizes during the three months ended September 30, 2014, and 2013, respectively.

Davis Graham & Stubbs LLP. Milam Randolph Pharo, a current Director of the Company, 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 three months ended September 30, 2014, and 2013, the Company recorded $32 thousand and $55 thousand, respectively, of legal fees related to DGS, with respect to which amounts Mr. Pharo had a compensation interest of $0 and $0, respectively.

Key Energy Services Inc. ("KES"). 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 KES until May, 2014. KES performed contract drilling rig services for the Company in Poplar during the first and second quarters of fiscal year 2014. The total contract fees payable to KES from activities during the three months ended September 30, 2013, was $1.1 million. During the three months ended September 30, 2014, KES performed no services for the Company and J. Robinson West was no longer a director of KES.

Central Petroleum Limited ("Central"). J. Thomas Wilson, President and Chief Executive Officer of the Company, also serves as a director of Central, in which the Company has an approximately 11% ownership interest. At September 30, 2014, the Company had recorded $33 thousand due to Central within accounts payable for funds received on Central's behalf from a third party licensee. Subsequent to September 30, 2014, these funds were remitted to Central.
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Severance Costs
3 Months Ended
Sep. 30, 2014
Restructuring and Related Activities [Abstract] '
Severance Costs '
Note 17 - Employee Severance Costs
On August 31, 2014, the Company provided a notice of termination to the only remaining employee of its MPA subsidiary. As a result, for the three months ended September 30, 2014, the Company expensed total employee-related severance costs of $475 thousand. The liability related to these severance costs is included in the unaudited condensed consolidated balance sheets under accrued and other liabilities. A reconciliation of the beginning and ending liability balance for charges to general and administrative expense and cash payments for the three months ended September 30, 2014, is as follows:
 
Severance - Termination Benefits
 
(In thousands)
Fiscal year opening balance
$

Charges to general and administrative expense
475

Transfer of opening accrued vacation balance
44

Cash payments

Balance at September 30, 2014
$
519


The Company does not expect any additional benefits or other associated costs related to this termination, and severance and accrued vacation described in the above table were paid in cash to the employee on October 31, 2014.
Post termination, this individual is continuing a formal relationship with Magellan by virtue of his continuing status as a resident Australian national board member for each of the Company's three Australian subsidiary entities. Furthermore, the Company expects to enter into a consultancy agreement with this individual in November 2014 under which this individual will provide ongoing consulting services to Magellan with respect to its Australian subsidiaries, including matters related to NT/P82.
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Subsequent Events
3 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract] '
Subsequent Events '
Note 18 - Subsequent Events

Hastings Repurchase. On October 10, 2014, the Company entered into an Options and Stock Purchase Agreement with William H. Hastings, a former executive officer and Director of the Company, and a beneficial owner of more than five percent of the Company’s Common Stock as of October 10, 2014. The Options and Stock Purchase Agreement provided for the purchase by the Company of options previously granted to Mr. Hastings under the Company’s 1998 Stock Incentive Plan, as amended, to purchase 1,512,500 shares of the Company’s Common Stock at an exercise price of $1.20 per share, and 250,000 shares of Common Stock held in an individual retirement account for the benefit of Mr. Hastings, for a total purchase price of $1,445,625. The Options and Stock Purchase Agreement was approved by the CNG Committee and the Board of Directors, and was completed on October 17, 2014. Pursuant to the terms of the 2012 Stock Incentive Plan, the options repurchased from Mr. Hastings and canceled became available for future grants under the 2012 Stock Incentive Plan.

Executive officer changes and executive compensation. On October 31, 2014, the Board appointed Antoine J. Lafargue as the Company’s new Senior Vice President of Strategy and Business Development and Chief Commercial Officer, and Matthew R. Ciardiello as the Company’s Vice President – Chief Financial Officer, Treasurer, and Corporate Secretary. In connection with the above executive promotions and effective on October 31, 2014, the Board’s Compensation, Nominating and Governance Committee (the “CNG Committee”) established a new 2015 incentive compensation program (the "2015 Program") that included increases in base salaries, grants of restricted stock, and grants of performance and market based options under the 2012 Stock Incentive Plan to Mr. Lafargue, Mr. Ciardiello, and J. Thomas Wilson, President and Chief Executive Officer of the Company, and a grant of restricted stock to J. Robinson West, Chairman of the Board.

In aggregate, under the 2015 Program, 150,000 shares of restricted stock and 1,650,000 stock options were issued under the 2012 Stock Incentive Plan. The exercise price of the options is $1.80 per share. As of November 7, 2014, the number of shares available for future issuance under the 2012 Stock Incentive Plan, including the options repurchased from Mr. Hastings and canceled as described above, was 492,657.

Stock option exercise. Subsequent to September 30, 2014206,250 stock options previously granted under the 2012 Stock Incentive Plan were exercised resulting in the issuance of 47,663 shares of common stock, which number is net of shares withheld to satisfy certain employee tax and exercise price obligations.
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Basis of Presentation (Policies)
3 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract] '
Basis of Presentation '
Basis of Presentation
The accompanying unaudited condensed 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") for interim financial information, and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X published by the US Securities and Exchange Commission (the "SEC"). Accordingly, these interim unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete annual period financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. All intercompany transactions have been eliminated. Operating results for the three months ended September 30, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. This report should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014 (the "2014 Form 10-K"). 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 the unaudited condensed 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 unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses, including stock-based compensation expense, during the reporting periods. 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 unaudited condensed consolidated statements of operations and cash flows are translated at average exchange rates during the reporting periods. Resulting translation adjustments are recorded in accumulated other comprehensive income, a separate component of stockholders' equity. A component of accumulated other comprehensive income will be released into income when the Company executes a partial or complete sale of an investment in a foreign subsidiary or a group of assets of a foreign subsidiary considered a business and/or when the Company no longer holds a controlling financial interest in a foreign subsidiary or group of assets of a foreign subsidiary considered a business.
Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in foreign currency transaction gains and losses that are reflected in results of operations as unrealized (based on period end translation) or realized (upon settlement of the transactions) and reported under general and administrative expenses in the consolidated statements of operations.

Securities available-for-sale '
Securities available-for-sale
Securities available-for-sale are comprised of investments in publicly traded securities and are carried at quoted market prices. Unrealized gains and losses are excluded from earnings and recorded as a component of accumulated other comprehensive income in stockholders' equity, net of deferred income taxes. The Company recognizes gains or losses when securities are sold. On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a security with an unrealized loss has suffered other-than-temporary impairment. As a result of this review, no impairment was recorded during the three months ended September 30, 2014, or 2013, respectively.

Oil and Gas Exploration and Production Activities '
Oil and Gas Exploration and Production Activities

The Company follows the successful efforts method of accounting for its oil and gas exploration and production activities. Under this method, all property acquisition costs, and costs of exploratory and development wells are capitalized until a determination is made that the well has found proved reserves or is deemed noncommercial. If an exploratory well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. Exploration expenses include dry hole costs, geological and geophysical expenses. Noncommercial development well costs are charged to impairment expense if circumstances indicate that a decline in the recoverability of the carrying value may have occurred.

Depreciation, depletion, and amortization ("DD&A") of capitalized costs related to proved oil and gas properties is calculated on a property-by-property basis using the units-of-production method based upon proved reserves. The computation of DD&A takes into consideration restoration, dismantlement, and abandonment costs as well as the anticipated proceeds from salvaging equipment. The Company records its proportionate share in joint venture operations in the respective classifications of assets, liabilities, and expenses.

The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement, and no gain or loss is recognized as long as the treatment does not significantly affect the units-of-production depletion rate. A gain or loss is recognized for all other sales of producing properties.

The Company reviews its proved oil and gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future cash flows of its oil and gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to fair value. The factors used to determine fair value include, but are not limited to, recent sales prices of comparable properties, the present value of estimated future cash flows, net of estimated operating and development costs, using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected.
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 

Revenue Recognition '
Revenue Recognition

The Company derives revenue primarily from the sale of produced oil. Oil revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability of the revenue is probable. Transportation costs are included in production costs.

Major Customers '
Major Customers

The Company's consolidated oil production revenue is derived from its NP segment and is generated from a single customer for the three months ended September 30, 2014 and 2013.
Stock Based Compensation '
Stock Based Compensation
Stock option grants may contain time based, market based, or performance based vesting provisions. Time based options are expensed on a straight-line basis over the vesting period. Market based options are expensed based on a graded amortized method, the expense is recognized if the derived service period is satisfied, even if the market condition is not achieved. Performance based options ("PBOs") are recognized when the achievement of the performance conditions is considered probable. Accordingly, PBOs are expensed over the period of time the performance condition is expected to be achieved. Management re-assesses whether achievement of performance conditions is probable at the end of each reporting period. If changes in the estimated outcome of the performance conditions affect the quantity of the awards expected to vest, the cumulative effect of the change is recognized in the period of change.
The fair value of the stock options is determined on the grant date and is affected by our stock price and other assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the term of the awards, risk free interest rates, expected dividends, and the expected option exercise term. The Company estimates the fair value of PBOs and time based stock options using the Black-Scholes-Merton pricing model. The simplified method is used to estimate the expected term of stock options due to a lack of related historical data regarding exercise, cancellation, and forfeiture. For market based stock options, the fair value is estimated using Monte Carlo simulation techniques.
Accumulated Other Comprehensive Income (Loss) '
Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is presented net of applicable income taxes in the accompanying consolidated statements of stockholders' equity and comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of stockholders' equity instead of net income (loss).

Loss per Common Share '
Loss per Common Share

Income and losses per common share are based upon the weighted average number of common and common equivalent shares outstanding during the period. The effect of potential dilutive securities in the determinations of diluted earnings per share are the dilutive effect of stock options, non-vested restricted stock, and the shares of Series A convertible preferred stock.

The potential dilutive impact of stock options, and non-vested restricted stock is determined using the treasury stock method. The potential dilutive impact of the shares of Series A convertible preferred stock is determined using the "if-converted" method. In applying the if-converted method, conversion is not assumed for purposes of computing dilutive shares if the effect would be antidilutive. The Series A convertible preferred stock is convertible at a rate of one common share to one preferred share. We did not include any stock options, non-vested restricted stock, or common stock issuable upon the conversion of the Series A convertible preferred stock in the calculation of diluted loss per share during the three months ended September 30, 2014 and 2013, respectively, as they would be antidilutive.

Segment Information '
Segment Information
As of June 30, 2013, the Company determined, based on the criteria of ASC Topic 280, that it operates in three segments, NP, MPUK, and MPA, as well as a head office, Magellan ("Corporate"), which is treated as a cost center.
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, and MPA, as well as Corporate. For information pertaining to our reporting segments, see Note 13 - Segment Information, and Part II, Item 8 of our 2014 Form 10-K.
Recently Issued Accounting Standards '
Recently Issued Accounting Standards
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern. The objective of ASU 2014-15 is to provide 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 does not expect the adoption of this standard to have a significant impact on its condensed consolidated financial statements.
    
In June 2014, the FASB issued ASU No. 2014-12, “Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires a reporting entity to treat a performance target 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 is currently evaluating which transition approach to use and the impact of the adoption of this standard on its condensed consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. The ASU allows for the use of either the full or modified retrospective transition method, and the standard will be effective for us in the first quarter of our fiscal year 2018; early adoption is not permitted. The Company is currently evaluating which transition approach to use and the impact of the adoption of this standard on its condensed 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 condensed consolidated financial statements.

In February 2013, the FASB issued Accounting Standards Update ("ASU") No. 2013-02 which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income. ASU No. 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective July 1, 2013. The Company's adoption of this standard did not have a significant impact on its condensed consolidated financial statements.
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Discontinued Operations (Tables)
3 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract] '
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures '
Summarized results of the Company's discontinued operations are as follows:
 
 
THREE MONTHS ENDED
 
 
September 30,
 
 
2014
 
2013
 
(In thousands)
Revenue
 
$

 
$
221

Net loss from discontinued operations
 
$

 
$
(1,154
)
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Securities Available-for-Sale (Tables)
3 Months Ended
Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract] '
Schedule of Available-for-sale Securities '
The following table presents the amortized cost, gross unrealized gains, gross unrealized losses, and fair market value of available-for-sale equity securities as follows:
 
September 30, 2014
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair
value
 
(In thousands)
Equity securities
$
19,339

 
$

 
$
(9,478
)
 
$
9,861

 
 
 
 
 
 
 
 
 
June 30, 2014
 
Amortized
cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair
value
 
(In thousands)
Equity securities
$
19,339

 
$

 
$
(7,404
)
 
$
11,935

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Asset Retirement Obligations (Tables)
3 Months Ended
Sep. 30, 2014
Asset Retirement Obligation Disclosure [Abstract] '
Asset Retirement Obligations Roll-Forward '
The following table summarizes the ARO activity for the three months ended September 30, 2014:
 
Total
 
(In thousands)
Fiscal year opening balance

$
2,873

Accretion expense
46

Effect of exchange rate changes
(19
)
Balance at September 30, 2014
2,900

Less current asset retirement obligation
378

Long term asset retirement obligation
$
2,522

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Fair Value Measurements (Tables)
3 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract] '
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis '
The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows:
 
September 30, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Securities available-for-sale
$
9,861

 
$

 
$

 
$
9,861

 


 


 


 


Liabilities:
 
 
 
 
 
 
 
Contingent consideration payable (1)
$

 
$

 
$
1,888

 
$
1,888

 
 
 
 
 
 
 
 
 
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)
$

 
$

 
$
1,852

 
$
1,852

(1) See Note 15 - Commitments and Contingencies, below for additional information about this item.
Fair Value Inputs, Assets, Quantitative Information '
The following table presents information about significant unobservable inputs to the Company's Level 3 financial liability measured at fair value on a recurring basis as follows:
Description
 
Valuation technique
 
Significant unobservable inputs
 
September 30,
2014
 
June 30,
2014
Contingent consideration payable
 
Discounted cash flow model
 
Discount rate
 
8.0%
 
8.0%
 
 
 
 
First production payout
 
June 30, 2015
 
June 30, 2015
 
 
 
 
Second production payout
 
N/A
 
N/A
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation '
Adjustments to the fair value of the contingent consideration payable are recorded in the unaudited condensed consolidated statements of operations under net interest income. The following table presents a roll forward of the contingent consideration payable for the three months ended September 30, 2014:
 
Total
 
(In thousands)
Fiscal year opening balance
$
1,852

Accretion of contingent consideration payable
36

Balance at September 30, 2014
$
1,888

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Stock-Based Compensation (Tables)
3 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] '
Stock Option Activity '
The following table summarizes the stock option activity for the three months ended September 30, 2014:
 
Number of
Shares
 
WAEPS (1)
Fiscal year opening balance
10,492,291

 
$1.26
Granted

 
$0.00
Exercised
(288,541
)
 
$1.14
Forfeited
(980,210
)
 
$1.08
Balance at September 30, 2014
9,223,540

 
$1.28
Weighted average remaining contractual term
4.8

years
(1) Weighted average exercise price per share
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(Tables)
3 Months Ended
Sep. 30, 2014
Equity [Abstract] '
Schedule of Preferred Stock Activity '

The activity related to the Series A Preferred Stock for the three months ended September 30, 2014, and the fiscal year ended June 30, 2014, is as follows:
 
THREE MONTHS ENDED
 
FISCAL YEAR ENDED
 
September 30, 2014
 
June 30, 2014
 
Number of shares
 
Amount
 
Number of shares
 
Amount
 
(In thousands, except share amounts)
Fiscal year opening balance
20,089,436

 
$
24,539

 
19,239,734

 
$
23,502

PIK dividend shares issued, for previously accrued dividend

 

 
164,607

 
202

Current year PIK dividend shares issued

 

 
685,095

 
835

Balance at end of period
20,089,436

 
$
24,539

 
20,089,436

 
$
24,539

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Stockholders' Equity (Tables)
3 Months Ended
Sep. 30, 2014
Equity [Abstract] '
Treasury Stock Activity '
The following table summarizes the Company's treasury stock activity as follows:
 
THREE MONTHS ENDED
 
FISCAL YEAR ENDED
 
September 30, 2014
 
June 30, 2014
 
Number of shares
 
Amount
 
Number of shares
 
Amount
 
(In thousands, except share amounts)
Fiscal year opening balance
9,425,114

 
$
9,344

 
9,414,176

 
$
9,333

Repurchases through the stock repurchase program

 

 

 

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
47,920

 
104

 
10,938

 
11

Cancellation of shares repurchased
(47,920
)
 
(104
)
 

 

Balance at end of period
9,425,114


$
9,344

 
9,425,114

 
$
9,344

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Loss Per Common Share (Tables)
3 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract] '
Schedule of Earnings Per Share, Basic and Diluted '
The following table summarizes the computation of basic and diluted earnings per share:
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
 
(In thousands, except share and per share amounts)
Loss from continuing operations
$
(2,627
)
 
$
(3,681
)
Preferred stock dividend
(430
)
 
(415
)
Net loss from continuing operations, including preferred stock dividends
(3,057
)
 
(4,096
)
Net loss from discontinued operations

 
(1,154
)
Net loss attributable to common stockholders
$
(3,057
)
 
$
(5,250
)
 
 
 
 
Basic weighted average shares outstanding
45,652,994

 
45,348,840

Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1)

 

Diluted weighted average common shares outstanding
45,652,994

 
45,348,840

 
 
 
 
Basic loss per common share:
 
 
 
Net loss from continuing operations, including preferred stock dividends

$(0.07)
 
$(0.09)
Net loss from discontinued operations
$0.00
 
$(0.03)
Net loss attributable to common stockholders
$(0.07)
 
$(0.12)
 
 
 
 
Diluted loss per common share:
 
 
 
Net loss from continuing operations, including preferred stock dividends

$(0.07)
 
$(0.09)
Net loss from discontinued operations
$0.00
 
$(0.03)
Net loss attributable to common stockholders
$(0.07)
 
$(0.12)
(1) All diluted earnings per share calculations are dictated by the results from continuing operations. Accordingly there were no dilutive effects on loss per share in the periods presented.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share '
Potentially dilutive securities excluded from the calculation of diluted shares outstanding in periods with net losses are as follows:
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
In-the-money stock options
6,885,105

 
157,500

Non-vested restricted stock
200,000

 

Convertible preferred stock
20,089,436

 
19,743,917

Total
27,174,541

 
19,901,417

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Segment Information (Tables)
3 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract] '
Schedule of Segment Reporting Information, by Segment '
The Company conducts its operations through three wholly owned subsidiaries: NP, which operates in the US; MPUK, which includes our operations in the UK; and MPA, which is primarily active in Australia. Oversight for these subsidiaries is provided by Corporate which is treated as a cost center.
 
THREE MONTHS ENDED
 
September 30,
 
2014
 
2013
 
(In thousands)
Revenue from oil production:
 
 
 
NP
$
1,590

 
$
2,134

 
 
 
 
Net income (loss) from continuing operations:
 
 
 
NP
$
113

 
$
(562
)
MPUK
(432
)
 
(632
)
MPA
(635
)
 
63

Corporate
(1,673
)
 
(2,546
)
Inter-segment elimination

 
(4
)
Consolidated net loss from continuing operations
$
(2,627
)
 
$
(3,681
)
 
 
 
 
 
 
 
 
 
September 30,
2014
 
June 30,
2014
 
(In thousands)
Total assets:
 
 
 
NP
$
27,558

 
$
27,299

MPUK
4,203

 
4,486

MPA
11,837

 
14,073

Corporate
110,090

 
111,113

Inter-segment elimination (1)
(76,479
)
 
(75,536
)
Total assets of continuing operations
$
77,209

 
$
81,435

(1) Asset inter-segment eliminations are primarily derived from investments in subsidiaries.
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Oil and Gas Activities (Tables)
3 Months Ended
Sep. 30, 2014
Oil and Gas Exploration and Production Industries Disclosures [Abstract] '
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure '
The following table presents the capitalized costs under the successful efforts method for oil and gas properties as of:
 
September 30,
2014
 
June 30,
2014
 
(In thousands)
Proved oil and gas properties:
 
 
 
United States
$
29,506

 
$
29,335

Less accumulated depletion, depreciation, and amortization
(3,733
)
 
(3,575
)
Total net proved oil and gas properties
$
25,773

 
$
25,760

 
 
 
 
Unproved oil and gas properties:
 
 
 
United Kingdom
$
269

 
$
282

United States
268

 
268

Australia
1

 

Total unproved oil and gas properties
$
538

 
$
550

 
 
 
 
Wells in Progress:
 
 
 
United Kingdom
$
1,815

 
$
1,610

United States (1)
23,127

 
19,686

Total wells in progress
$
24,942

 
$
21,296

(1) The Company began implementing a CO2-enhanced oil recovery pilot project at NP in the first quarter of fiscal year 2014.
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Severance Costs (Tables)
3 Months Ended
Sep. 30, 2014
Restructuring and Related Activities [Abstract] '
Schedule of Restructuring and Related Costs '
A reconciliation of the beginning and ending liability balance for charges to general and administrative expense and cash payments for the three months ended September 30, 2014, is as follows:
 
Severance - Termination Benefits
 
(In thousands)
Fiscal year opening balance
$

Charges to general and administrative expense
475

Transfer of opening accrued vacation balance
44

Cash payments

Balance at September 30, 2014
$
519

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Basis of Presentation (Description of Operations) (Details) (USD $)
3 Months Ended
Sep. 30, 2014
segment
Sep. 30, 2013
Schedule of Equity Method Investments [Line Items] ' '
Number of reportable segments 3 '
Impairment on AFS securities $ 0 $ 0
Central Petroleum Limited ' '
Schedule of Equity Method Investments [Line Items] ' '
Ownership percentage 11.00% '
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Sale of Amadeus Basin Assets (Details) (AUD)
0 Months Ended 3 Months Ended 6 Months Ended
Apr. 15, 2014
Mar. 31, 2014
Sep. 30, 2014
Mar. 31, 2014
Central Petroleum Limited ' ' ' '
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] ' ' ' '
Ownership percentage ' ' 11.00% '
Amadeus Basin ' ' ' '
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] ' ' ' '
Proceeds from first and second cash installment for the sale of Amadeus Basin assets 5,000,000 15,000,000 ' '
Amount excluded form reimbursement of capital expenditures ' ' ' 485,000
Discount rate ' ' 10.00% '
Amadeus Basin | Maximum ' ' ' '
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] ' ' ' '
Bonus discharge amount ' ' 7,000,000 '
Amadeus Basin | Palm Valley ' ' ' '
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 ' ' 5 '
AUD/Gigajoule gas price trigger for following five years ' ' 6 '
Amadeus Basin | Central Petroleum Limited ' ' ' '
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] ' ' ' '
Shares issued during period for acquisitions ' 39,500,000 ' '
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Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] ' '
Revenue $ 0 $ 221
Net loss from discontinued operations $ 0 $ (1,154)
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Securities Available-for-Sale (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract] ' '
Amortized cost $ 19,339 $ 19,339
Gross unrealized gains 0 0
Gross unrealized losses (9,478) (7,404)
Fair value $ 9,861 $ 11,935
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Debt (Long Term Debt Instruments) (Details) (USD $)
Jan. 31, 2011
Notes Payable
Note Payable Due June 2014
Sep. 30, 2014
Revolving Credit Facility
Sep. 17, 2014
Revolving Credit Facility
Sep. 30, 2014
Letter of Credit
Sep. 17, 2014
Prime Rate
Revolving Credit Facility
Sep. 17, 2014
Floor Rate
Revolving Credit Facility
Nov. 06, 2014
Subsequent Event
Revolving Credit Facility
Debt Instrument [Line Items] ' ' ' ' ' ' '
Note payable issued amount $ 1,700,000 ' ' ' ' ' '
Maximum borrowing capacity ' ' 8,000,000 25,000 ' ' '
Interest rate ' ' ' ' 3.25% 3.25% '
Oustanding balance on line of credit ' $ 0 ' ' ' ' $ 2,000,000
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Asset Retirement Obligations (Roll-Forward) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] ' '
Fiscal year opening balance $ 2,873 '
Accretion expense 46 '
Effect of exchange rate changes (19) '
Balance at September 30, 2014 2,900 '
Less current asset retirement obligation 378 397
Long term asset retirement obligation $ 2,522 $ 2,476
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Fair Value Measurements (Assets and Liabilities Carried at Fair Value by Classification Level in Valuation Hierarchy) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Securities available-for-sale $ 9,861 $ 11,935
Contingent consideration payable 0 1,852
Recurring | Level 1 ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Securities available-for-sale 9,861 11,935
Assets '   '  
Business Combination, Contingent Consideration, Liability 0 0
Recurring | Level 2 ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Securities available-for-sale 0 0
Assets '   '  
Business Combination, Contingent Consideration, Liability 0 0
Recurring | Level 3 ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Securities available-for-sale 0 0
Assets '   '  
Business Combination, Contingent Consideration, Liability 1,888 1,852
Recurring | Estimate of Fair Value ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Securities available-for-sale 9,861 11,935
Assets '   '  
Business Combination, Contingent Consideration, Liability $ 1,888 $ 1,852
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Fair Value Measurements (Significant Unobservable Inputs to Level 3) (Details)
3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Rolling gross production average '60 days '
Level 3 ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Discount rate 8.00% 8.00%
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Fair Value Measurements (Unobservable Input Reconciliation) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] ' '
Ending balance $ 0 $ 1,852
Recurring | Level 3 ' '
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] ' '
Business Combination, Contingent Consideration, Liability 1,888 1,852
Accretion of contingent consideration payable $ 36 '
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Income Taxes (Income Before Income Tax, Domestic and Foreign) (Details)
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Net Income (Loss) Before Income Taxes ' '
Effective tax rate 0.00% 0.00%
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Stock-Based Compensation (Details) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Restricted Stock
Sep. 30, 2014
PBOs
CO2-EOR Pilot Program at Poplar
Sep. 30, 2014
PBOs
CO2-EOR Development Project at Poplar
Sep. 30, 2014
PBOs
Sale of Substantially All of the Amadeus Basin Assets
Sep. 30, 2014
PBOs
Approval of a Farmout Agreement or Participation in Drilling a Well in the Weald Basin
Sep. 30, 2014
PBOs
Approval of a Farmout Agreement in the Bonaparte Basin
Sep. 30, 2014
Employee Stock Option
Sep. 30, 2014
Market Based Options
Jan. 16, 2013
Employee Stock Option
Jan. 16, 2013
RSUs
Sep. 30, 2014
2012 Stock Incentive Plan
Jan. 16, 2013
2012 Stock Incentive Plan
Sep. 30, 2014
2012 Stock Incentive Plan
Market Based Options
trading_day
Sep. 30, 2014
1998 Stock Incentive Plan
Dec. 08, 2010
1998 Stock Incentive Plan
Sep. 30, 2014
1998 Stock Incentive Plan
Employee Stock Option
Jul. 01, 2014
Non-employee Directors
Sep. 30, 2014
Non-employee Directors
Jul. 01, 2014
Non-employee Directors
Common Stock
Aug. 15, 2014
Vice President
Aug. 15, 2014
Vice President
RSUs
Sep. 30, 2014
Selling, General and Administrative Expense
Sep. 30, 2013
Selling, General and Administrative Expense
Sep. 30, 2014
Selling, General and Administrative Expense
Prior Period Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Number of shares authorized ' ' ' ' ' ' ' ' ' ' ' ' ' 5,000,000 ' ' 288,435 ' ' ' ' ' ' ' ' '
Maximum number of shares allowed to be issued each year ' ' ' ' ' ' ' ' ' ' 1,000,000 500,000 ' ' ' ' ' ' ' ' ' ' ' ' ' '
Expiration term ' ' ' ' ' ' ' ' ' ' ' ' '10 years ' ' ' ' ' ' ' ' ' ' ' ' '
Performance metrics weighted average ' ' ' 10.00% 40.00% 20.00% 20.00% 10.00% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Per share closing price (in dollars per share) ' ' ' ' ' ' ' ' ' $ 2.35 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Number of consecutive trading days ' ' ' ' ' ' ' ' ' ' ' ' ' ' 10 ' ' ' ' ' ' ' ' ' ' '
Median stock price (in dollars per share) ' ' ' ' ' ' ' ' ' ' ' ' ' ' $ 2.35 ' ' ' ' ' ' ' ' ' ' '
Median stock price, maintenance period ' ' ' ' ' ' ' ' ' ' ' ' ' ' '90 days ' ' ' ' ' ' ' ' ' ' '
Number of stock options exercised 288,541 0 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 21,875 ' ' ' ' ' ' '
Issuance of common stock (in shares) 225,235 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Number of stock options forfeited 980,210 0 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Nonvested options outstanding (in shares) ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1,728,124 ' ' ' ' ' ' ' ' ' '
Market based and performance based shares available for future issuance ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 819,323 ' ' ' ' ' ' ' '
Share-based compensation expense ' ' $ (44,000) ' ' ' ' ' $ (320,000) ' ' ' ' ' ' ' ' ' ' $ 245,000 ' ' ' $ 44,000 $ 700,000 $ 163,000
Unrecorded expected future compensation expense related to stock option awards $ 800,000 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Grants in period ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 96,330 ' ' ' ' '
Unvested options forfeited ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 980,210 ' ' ' '
Unvested RSUs forfeited ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 100,000 ' ' '
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Stock-Based Compensation (Stock Option Activity) (Details) (USD $)
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] ' '
Balance at beginning of year (in shares) 10,492,291 '
Granted (in shares) 0 '
Exercised (in shares) (288,541) 0
Forfeited (in shares) (980,210) 0
Options outstanding at year end (in shares) 9,223,540 '
Weighted average remaining contractual term '4 years 9 months 18 days '
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] ' '
Weighted Average Exercise Price per Share, Balance at beginning of year (in dollars per share) $ 1.26 '
Weighted Average Exercise Price per Share, Granted (in dollars per share) $ 0 '
Weighted Average Exercise Price per Share, Exercised (in dollars per share) $ 1.14 '
Weighted Average Exercise Price Per Share, Forfeited (in dollars per share) $ 1.08 '
Weighted Average Exercise Price per Share, Options outstanding at year end (in dollars per share) $ 1.28 '
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Preferred Stock (Details) (USD $)
0 Months Ended 3 Months Ended
May 10, 2013
Sep. 30, 2014
Sep. 30, 2013
Jun. 30, 2014
Class of Stock [Line Items] ' ' ' '
Preferred stock, par value (in dollars per share) ' $ 0.01 ' $ 0.01
Proceeds fro issuance of preferred stock $ 23,500,000 ' ' '
Preferred stock dividend ' 430,000 ' '
Accrued dividends ' 430,000 ' 429,000
Payment of preferred stock dividend ' $ 429,000 $ 0 '
Series A Preferred Stock ' ' ' '
Class of Stock [Line Items] ' ' ' '
Issuance of Series A Preferred Stock 19,239,734 ' ' '
Preferred stock, par value (in dollars per share) $ 0.01 ' ' '
Purchase price (in dollars per share) $ 1.22149381 ' ' '
Shares issued upon conversion 1 ' ' '
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Preferred Stock Rollforward (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Number of shares ' '
Fiscal year opening balance 20,089,436 19,239,734
PIK dividend shares issued, for previously accrued dividend 0 164,607
Current year PIK dividend shares issued 0 685,095
Balance at end of period 20,089,436 20,089,436
Amount ' '
Fiscal year opening balance $ 24,539 $ 23,502
PIK dividend shares issued, for previously accrued dividend 0 202
Current year PIK dividend shares issued 0 835
Balance at end of period $ 24,539 $ 24,539
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Stockholders' Equity (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended
Nov. 30, 2012
Sep. 30, 2014
Jun. 30, 2014
Sep. 24, 2014
Jul. 01, 2014
Restricted Stock
Class of Stock [Line Items] ' ' ' ' '
Stock repurchase program, authorized amount ' ' ' $ 2,000,000 '
Vested restricted stock award (in shares) ' ' ' ' 150,000
Treasury Stock [Roll Forward] ' ' ' ' '
Fiscal year opening balance (in shares) ' 9,425,114 9,414,176 ' '
Fiscal year opening balance ' 9,344,000 9,333,000 ' '
Repurchases through the stock repurchase program (in shares) 149,539 0 0 ' '
Repurchases through the stock repurchase program ' 0 0 ' '
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 (in shares) ' 47,920 10,938 ' 47,920
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 ' 104,000 11,000 ' '
Cancellation of shares repurchased (in shares) ' (47,920) 0 ' '
Cancellation of shares repurchased ' (104,000) 0 ' '
Balance at end of period (in shares) ' 9,425,114 9,425,114 ' '
Balance at end of period ' $ 9,344,000 $ 9,344,000 ' '
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Loss Per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Earnings Per Share [Abstract] ' '
Loss from continuing operations $ (2,627) $ (3,681)
Preferred stock dividends (430) (415)
Net loss from continuing operations, including preferred stock dividends (3,057) (4,096)
Net loss from discontinued operations 0 (1,154)
Net loss attributable to common stockholders $ (3,057) $ (5,250)
Earnings per common share ' '
Basic weighted average shares outstanding 45,652,994 45,348,840
Add: dilutive effects of in-the-money stock options and non-vested restricted stock grants (1) 0 0
Diluted weighted average common shares outstanding 45,652,994 45,348,840
Basic loss per common share: ' '
Loss from continuing operations (in dollars per share) $ (0.07) $ (0.09)
Net income (loss) from discontinued operations (in dollars per share) $ 0 $ (0.03)
Net income (loss) attributable to common stockholders (in dollars per share) $ (0.07) $ (0.12)
Diluted loss per common share: ' '
Loss from continuing operations (in dollars per share) $ (0.07) $ (0.09)
Net income (loss) from discontinued operations (in dollars per share) $ 0 $ (0.03)
Net income (loss) attributable to common stockholders (in dollars per share) $ (0.07) $ (0.12)
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Loss Per Common Share (Schedule of Antidilutive Securities) (Details)
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] ' '
Potentially dilutive securities 27,174,541 19,901,417
Stock options ' '
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] ' '
Potentially dilutive securities 6,885,105 157,500
Restricted Stock ' '
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] ' '
Potentially dilutive securities 200,000 0
Convertible Preferred Stock ' '
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] ' '
Potentially dilutive securities 20,089,436 19,743,917
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Segment Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
segment
Sep. 30, 2013
Jun. 30, 2014
Segment Reporting Information [Line Items] ' ' '
Number of reportable segments 3 ' '
Loss from continuing operations $ (2,627) $ (3,681) '
Total assets 77,209 ' 81,435
Nautilus Poplar, LLC (NP) ' ' '
Segment Reporting Information [Line Items] ' ' '
Revenue from oil production 1,590 2,134 '
Loss from continuing operations 113 (562) '
Total assets 27,558 ' 27,299
Magellan Petroleum UK (MPUK) ' ' '
Segment Reporting Information [Line Items] ' ' '
Loss from continuing operations (432) (632) '
Total assets 4,203 ' 4,486
Magellan Petroleum Australia (MPA) ' ' '
Segment Reporting Information [Line Items] ' ' '
Loss from continuing operations (635) 63 '
Total assets 11,837 ' 14,073
Corporate ' ' '
Segment Reporting Information [Line Items] ' ' '
Loss from continuing operations (1,673) (2,546) '
Total assets 110,090 ' 111,113
Inter-segment Elimination ' ' '
Segment Reporting Information [Line Items] ' ' '
Loss from continuing operations 0 (4) '
Total assets $ (76,479) ' $ (75,536)
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Oil and Gas Activities (Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] ' '
Proved oil and gas properties $ 29,506 $ 29,335
Less accumulated depletion, depreciation, amortization, and accretion (3,733) (3,575)
Total net proved oil and gas properties 25,773 25,760
Unproved oil and gas properties 538 550
Wells in progress 24,942 21,296
United States ' '
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] ' '
Proved oil and gas properties 29,506 29,335
Less accumulated depletion, depreciation, amortization, and accretion (3,733) (3,575)
Unproved oil and gas properties 268 268
Wells in progress 23,127 19,686
Australia ' '
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] ' '
Unproved oil and gas properties 1 0
United Kingdom ' '
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] ' '
Unproved oil and gas properties 269 282
Wells in progress $ 1,815 $ 1,610
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Commitments and Contingencies (Details) (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Nov. 12, 2014
Subsequent Event
Sep. 30, 2014
Nautilus Purchase and Sale Agreement (PSA) [Member]
Jan. 14, 2014
Sopak Collateral Agreement [Member]
Common Stock
Jan. 14, 2014
Sopak Collateral Agreement [Member]
Warrant
Subsequent Event [Line Items] ' ' ' ' ' '
Future contingent production payments payable ' ' ' $ 5 ' '
Cash call, amount ' ' 2 ' ' '
Number of shares available for purchase ' ' ' ' 9,264,637 4,347,826
Percent of interest in contingent payments 52.00% ' ' ' ' '
Accrued income taxes 1.6 1.6 ' ' ' '
Income taxes receivable $ 1.6 $ 1.6 ' ' ' '
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Related Parties Transactions (Details) (USD $)
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Compensation Arrangement | Director ' '
Related Party Transaction [Line Items] ' '
Amount of transaction $ 0 $ 0
Devizes International Consulting Limited | Affiliated Entity ' '
Related Party Transaction [Line Items] ' '
Amount of transaction 81,000 40,000
Davis Graham & STUBBS LLP | Affiliated Entity ' '
Related Party Transaction [Line Items] ' '
Amount of transaction 32,000 55,000
Number of attorneys - over 140 '
Number of partners - over 65 '
Key Energy Services Inc (KES) | Affiliated Entity ' '
Related Party Transaction [Line Items] ' '
Amount of transaction 1,100,000 '
Central Petroleum Limited ' '
Related Party Transaction [Line Items] ' '
Ownership percentage 11.00% '
Central Petroleum Limited | Affiliated Entity ' '
Related Party Transaction [Line Items] ' '
Due to related parties ' $ 33,000
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Severance Costs (Details) (Employee Severance [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Restructuring Reserve [Roll Forward] '
Fiscal year opening balance $ 0
Charges to general and administrative expense 475
Transfer of opening accrued vacation balance 44
Cash payments 0
Ending balance 519
General and Administrative Expense [Member] '
Restructuring Reserve [Roll Forward] '
Charges to general and administrative expense $ 475
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Subsequent Events (Details) (USD $)
3 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Oct. 10, 2014
Subsequent Event
Oct. 10, 2014
Subsequent Event
Oct. 31, 2014
2012 Stock Incentive Plan
Subsequent Event
Nov. 12, 2014
2012 Stock Incentive Plan
Subsequent Event
Nov. 07, 2014
2012 Stock Incentive Plan
Subsequent Event
Oct. 10, 2014
Common Stock
Subsequent Event
Nov. 12, 2014
Common Stock
2012 Stock Incentive Plan
Subsequent Event
Oct. 31, 2014
Restricted Stock
2012 Stock Incentive Plan
Subsequent Event
Subsequent Event [Line Items] ' ' ' ' ' ' ' ' ' '
Former executive officer ownership, percent, more than ' ' ' 5.00% ' ' ' ' ' '
Shares of common stock repurchased ' ' ' ' ' ' ' 1,512,500 ' '
Exercise price of shares repurchased (in dollars per share) ' ' ' ' ' ' ' $ 1.2 ' '
Shares of common stock repurchased from individual retirement account ' ' ' ' ' ' ' 250,000 ' '
Repurchase of common stock $ 104,000 $ 0 $ 1,445,625 ' ' ' ' ' ' '
Shares granted in period ' ' ' ' ' ' ' ' ' 150,000
Options granted in period 0 ' ' ' 1,650,000 ' ' ' ' '
Exercise price of options (in dollars per share) ' ' ' ' $ 1.8 ' ' ' ' '
Number of shares available for future issuance under plan ' ' ' ' ' ' 492,657 ' ' '
Number of stock options exercised 288,541 0 ' ' ' 206,250 ' ' ' '
Issuance of common stock (in shares) 225,235 ' ' ' ' ' ' ' 47,663 '
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