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SAGASCO WITHDRAWS DISCLOSURE SUIT AGAINST MAGELLAN

 HARTFORD, Conn., Oct. 18 /PRNewswire/ -- Magellan Petroleum Corporation (NASDAQ: MPET) said Sagasco Holdings Ltd., an Australian gas company making a hostile tender for Magellan, has agreed to withdraw its disclosure-related lawsuit against Magellan in Federal District Court, Delaware.
 Magellan, which concurrently is withdrawing its counterclaim against Sagasco, said the lawsuit has been withdrawn with neither side admitting any wrongdoing, and that, in connection with the withdrawal, both companies have agreed to file supplemental disclosures with the SEC.
 Magellan President James R. Joyce said he was gratified with the settlement of the disclosure case, which he described as "an expensive exercise that we believe was of little benefit to either company." He also said Magellan has asked Delaware's Chancery Court to dismiss yet another Sagasco lawsuit that seeks to invalidate portions of Magellan's certificate of incorporation relating to stockholder voting.
 If the Chancery Court grants Magellan's motion, the case will terminate, subject to appeal, otherwise, a trial is scheduled to commence on Dec. 6, Joyce said, adding that the company believes Sagasco's case is without merit.
 Joyce further noted that Sagasco itself apparently agreed last week to be taken over by Boral Ltd., an Australian energy and building products conglomerate that already has acquired at least 52 percent of Sagasco's shares. He added, however, that Boral's intentions regarding Sagasco's hostile tender for Magellan are unknown at this time.
 "Our interest in the Palm Valley gas field is a valuable strategic asset that any Australian energy company would covet," said Joyce. "We discovered and developed that field over a 30-year period and we are committed to seeing that any benefits will be realized by Magellan's stockholders."
 -0- 10/18/93
 /CONTACT: Arthur B. O'Donnell of Magellan, 203-525-1202/
 (MPET)


CO: Magellan Petroleum Corporation; Sagasco Holdings Ltd. ST: Connecticut IN: OIL SU:

WB-LG -- NY033 -- 3368 10/18/93 11:48 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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