Magellan Petroleum says shareholder misunderstands issues the company faces

By Lisa Kerner

Charlotte, N.C., Oct. 24 - Magellan Petroleum Corp. responded to several allegations made by shareholder ANS Investments LLC in a lengthy Oct. 23 letter to ANS chief executive officer Johan M. Meer.

The letter was included in a form DEFA14A filed with the Securities and Exchange Commission.

According to Magellan, ANS misunderstands a number of important issues facing the company, including:

• Timing of disclosure concerning the correction of Magellan's 2008 quarterly filings;

• Increases in expenses;

• Magellan Petroleum's stock price;

• Directors' share ownership guidelines;

• CEO Daniel J. Samela's employment agreement; and

• Director independence.

In September, ANS announced plans to conduct a proxy solicitation seeking stockholder support for the election of Meer to the company's board at the 2008 annual meeting.

ANS is seeking to replace Timothy Largay's seat on the board that is up for election this year, it was previously reported.

Largay is a partner in Murtha Cullina LLP, a law firm that has been outside counsel to Magellan Petroleum for more than five years and is also an assistant corporate secretary of Magellan Petroleum, ANS said.

ANS said it will also solicit proxies in support of shareholder proposals to require all board members to stand for election annually and to prevent board members from seeking to entrench themselves.

The investor demanded to inspect the company's stockholder records under Delaware Law and asked for a stockholder list in order to disseminate solicitation materials, a prior SEC filing reported.

Magellan Petroleum is a Hartford, Conn., oil and gas company.

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