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FEDERAL COURT DISMISSES MAGELLAN COUNTERCLAIMS

 ADELAIDE, Australia, Oct. 13 /PRNewswire/ -- On Oct. 7, 1993, the United States District Court for the District of Delaware issued an order granting in part the motion of SAGUSA Inc. and SAGASCO Amadeus Pty. Ltd. ("SAGASCO") to dismiss Magellan Petroleum Corporation's ("Magellan") counterclaims alleging that SAGASCO had made false and misleading statements in certain filings with the Securities and Exchange Commission.
 The Court found that the Offer to Purchase's description of the tender offer price was "not misleading [and] does not give rise to a cognizable claim" and that Magellan's claims with respect to such statements "should be dismissed". The Court also held that the Offer to Purchase's description of certain Australian litigation between SAGASCO and Magellan Petroleum Australia Limited ("MPAL"), an Australian subsidiary of Magellan, and certain prior contracts between SAGASCO and MPAL and Magellan "are neither material nor misleading" and that Magellan's allegations relating to them "do not present a cognizable claim, and should be dismissed." The Court held however that, based on the current record, it could not dismiss Magellan's counterclaims with respect to whether SAGASCO should have disclosed the U.S. dollar equivalent of the Australian dollar price it paid for Magellan Common Stock in September 1992 and certain additional information regarding the Palm Valley natural gas fields operated by MPAL. The Court noted that Magellan's remaining claims had been withdrawn by Magellan at oral argument.
 As previously announced, SAGASCO's tender offer to purchase all outstanding shares of Magellan Common Stock for $1.50 per share is scheduled to expire at 5:00 p.m. New York City time on Friday, October 29, 1993.
 -0- 10/13/93
 /CONTACT: Scott Hutchinson, group finance manager-development of SAGASCO Holdings Limited, 011-61-8-235-3700, or Morgan Stanley & Co. Inc., 212-703-7262/


CO: SAGUSA Inc.; SAGASCO Amadeus Pty. Ltd.; Magellan Petroleum
 Corporation ST: IN: OIL SU:


LG -- NY095 -- 1809 10/13/93 15:44 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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