Of course, we may take no action and stay the current course of developing our existing assets if we determine that is our best existing alternative, but we are open to alternatives that are likely to improve our long term underlying value and consequently our stock performance.
The Company has not retained an investment banking firm or other external advisor at this time as such action appears premature at this stage of our process. This engagement decision will be reviewed regularly and is subject to prompt change should the circumstances so warrant.
I will coordinate the Committee's activities. Given that the members of the Committee are significant shareholders, the Board unanimously believes that the goal of enhancing shareholder value will receive its needed focus. As you know, the creation and function of this Committee does not insure that any specific transaction will occur. While the Committee's consideration of strategic alternatives is ongoing, the Company does not intend to comment further regarding this process and the items under consideration by the Committee unless and until a specific transaction is approved by the Board, the review process is concluded, or it is otherwise determined that further disclosure is appropriate or required by law.
I can assure you the Board and management of Magellan are committed to increasing shareholder value as quickly and prudently as possible. We are listening to your ideas and suggestions, even if they are critical. Our plan is to grow revenues, cut costs, and unlock the value we believe is embedded in our resource plays. If other strategies can accomplish these goals or otherwise enhance shareholder value in an acceptable fashion, we will move on them rapidly.
Very truly yours,
J. Thomas Wilson
President and CEO
FORWARD LOOKING STATEMENTS
Statements in this letter to shareholders which 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. These statements about the Company and its subsidiaries may relate to their businesses and prospects, revenues, expenses, operating cash flows, and other matters that involve a number of uncertainties that may cause actual results to differ materially from expectations. Among these risks and uncertainties are: (i) whether the Company's relocation to
will be timely completed and efficiently conducted; (ii) whether the Company can successfully develop its assets directly or through partnerships with third parties; (iii) the ability of the Company and Santos to complete and implement the terms of the asset swap in the Amadeus Basin and the related gas sales contract; (iv) whether management's remediation plan will timely and successfully address the material weaknesses in internal controls identified by the Company; (v) whether the formation of the Strategic Alternatives Committee will be successful in identifying strategic alternatives to enhance shareholder value; and (vi) the pricing and production levels from the properties in which Magellan and its subsidiaries have interests and the recoverable reserves at those properties.
SOURCE Magellan Petroleum Corporation