Magellan Petroleum Closes Convertible Preferred Issuance, Receives $23.5 Million in Proceeds, and Appoints Two New Directors

   Magellan Petroleum Closes Convertible Preferred Issuance, Receives $23.5
             Million in Proceeds, and Appoints Two New Directors

PR Newswire

DENVER, May 20, 2013

DENVER, May 20, 2013 /PRNewswire/ --Magellan Petroleum Corporation
("Magellan" or the "Company") (NASDAQ: MPET) today announced that on May 17,
2013 (the "Closing Date"), the Company closed the transaction contemplated by
the Series A Convertible Preferred Stock Purchase Agreement (the "Series A
Purchase Agreement") with One Stone Holdings II LP, an affiliate of One Stone
Energy Partners LP (collectively, "One Stone"), a New York based private
equity firm focused on investments in the oil and gas industry. The Company
and One Stone had previously entered into this agreement on May 10, 2013.

Pursuant to the terms of the Series A Purchase Agreement, on the Closing Date,
the Company received $23.5 million in exchange for 19,239,734 shares of Series
A Convertible Preferred Stock issued to One Stone. As part of the
transaction, One Stone also appointed two new members to Magellan's Board of
Directors. Effective as of the Closing Date, Robert Israel and Vadim Gluzman,
each a managing member of One Stone, joined Magellan's board.

Prior to One Stone, Mr. Israel was a partner at Compass Advisers LLP. Prior to
joining Compass in 2000, he was the head of the energy department of Schroder
& Co., Inc. from 1991 to 2000. Mr. Israel holds an M.B.A. from Harvard
Business School and a B.A. from Middlebury College. He is currently on the
board of W&T Offshore Inc.and several private energy-related companies.

Prior to One Stone, Mr. Gluzman served as a vice president of OAO LUKOIL and
President of Lukoil Americas Holding. Prior to joining Lukoil in 1997, he
worked as a chemical engineer for Teknor Apex Corporation and at the Moscow
Institute of Plastics.

Mr. Gluzman holds a Master's degree in chemical technologies from the Moscow
Institute of Chemical Technologies.

J. Robinson West, Chairman of the Board, stated, "We are pleased to welcome
Messrs. Israel and Gluzman to our Board. They both bring to the Board
extensive and world-class experience in the oil and gas industry, both
domestic and international. They will complement well our Board's current
experience and skill set and will substantially enrich the Board's dialogue
and strategic planning."

Bob Israel, Managing Member of One Stone, stated, "One Stone's focus is on
identifying "underdeveloped assets" in the natural resources sector. We
believe that the asset portfolio held by Magellan is an excellent opportunity
to combine One Stone's capital with high potential, underdeveloped assets. In
particular, the Poplar CO[2]-EOR project fits perfectly with our strategy.

We have great confidence in the management and look forward to working with
the Board of Directors of Magellan to increase the value of the Company for
all shareholders."

The securities described herein have not been registered under the U.S.
Securities Act of 1933, as amended, or any state securities laws, and may not
be offered or sold in the United States absent registration with the U.S.
Securities and Exchange Commission (the "SEC") or an applicable exemption from
such registration requirements.

CAUTIONARY INFORMATION ABOUT FORWARD LOOKING STATEMENTS

Statements in this press release that are not historical in nature are
intended to be, and are hereby identified as, forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995. The words
"believe," "expect," "intend," "will," and similar expressions are intended to
identify forward looking statements. These statements about Magellan may
relate to its businesses, prospects, and other matters that involve a number
of risks and uncertainties that may cause actual results to differ materially
from the results expressed or implied in the forward-looking statements.
Among these risks and uncertainties are: (i) whether Messrs. Israel and Guzman
will have a material positive impact on the governance of Magellan's Board of
Directors; and (ii) other risks and uncertainties set forth in the "Risk
Factors" sections of the Company's Annual Report on Form 10-K for the fiscal
year ended June 30, 2012, and subsequent Quarterly Reports on Form 10-Q filed
with the SEC. Forward looking statements in this press release speak only as
of the date hereof, and the Company undertakes no obligation to update or
revise such statements except as required by securities laws.

ABOUT MAGELLAN

Magellan is an independent energy company engaged in the exploration,
development, production, and sale of crude oil and natural gas from currently
held assets in the United States, Australia, and the United Kingdom. Traded
on NASDAQ since 1972, the Company conducts its operations through two wholly
owned subsidiaries, Nautilus Poplar LLC, which owns interests at Poplar, a
highly attractive oil field in the Williston Basin, and Magellan Petroleum
Australia Pty Ltd, a successful independent oil and gas company in Australia
and the UK in existence since 1964. The Company's mission is to enhance
shareholder value by maximizing the full potential of existing assets.
Magellan routinely posts important information about the Company on its
website at www.magellanpetroleum.com.

ABOUT ONE STONE

One Stone Energy Partners LP is a private equity fund based in New York. The
fund is focused on investments in natural resources, primarily oil and gas.
One Stone's geographic areas of interest include North and South America,
Europe, and West Africa.

The principals of the fund have over 130 years of cumulative experience
investing in, operating, and advising energy-related businesses. One Stone
has a unique group of limited partners, the majority of whom are industry
insiders.

Robert Israel and Vadim Gluzman are the managing members of One Stone Energy
Partners.

For further information, please contact:
Matthew Ciardiello, Manager, Investor Relations at 720.484.2404

SOURCE Magellan Petroleum Corporation

Website: http://www.magellanpetroleum.com
 
Press spacebar to pause and continue. Press esc to stop.