2009-08-05-2009-08-01-2009-08-01

Bought additional 4.35 million shares of company.

Luxembourg-based Young Energy Prize SA has completed a $10-million equity investment in Magellan Petroleum Corp., Portland, Maine, (Nasdaq: MPET). Magellan sold approximately 8.7 million shares of its common stock at $0.01 per share as well as warrants to acquire an additional 4.35 million shares to Young Energy. Magellan says it will use the proceeds for working capital and general corporate purposes. The warrants entitle Young Energy to purchase an additional 4.35 million shares of Magellan's common stock at $1.20 per share. As part of the deal, Young Energy designated that its founder, Nikolay Bogachev, and J. Thomas Wilson be named to Magellan's board of directors; their terms expire in 2011. Magellan president and CEO William H. Hastings says, "It has been a long but rewarding process in gaining our first successful equity investment closing. This is particularly true given the unprecedented external market conditions. This financing will provide an initial boost to the company's financial position as we pursue our strategic plan, the sale of our existing, uncommitted natural gas reserves, and the operational reorganization of our producing fields in the Amadeus Basin [in Australia]." Magellan has a 100% equity ownership interest in Magellan Petroleum Australia Ltd. Young Energy has energy investments in the western United States, West Africa and Australia.