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SAGASCO TERMINATES HOSTILE TENDER

 HARTFORD, Conn., Dec. 3 /PRNewswire/ -- Magellan Petroleum Corporation (NASDAQ: MPET) said Sagasco Holdings Ltd, an Australian gas company that launched a hostile tender for Magellan last May, has terminated its offer.
 Announcing its withdrawal, Sagasco said its decision was in part prompted by its reassessment of the value of Magellan's gas reserves and the timing of future gas contracts. However, James R. Joyce, Magellan's president, suggested there were other important considerations in Sagasco's decision.
 "Sagasco received tenders for only 14% of our stock in seven months," said Joyce. "It also lost its Delaware Chancery Court challenge to our voting provisions two days ago; and whether the proposed acquisition violates the Australian Trade Practices Act is an issue that has not yet been resolved."
 Joyce pointed out that, notwithstanding the termination of the tender, Sagasco remains a substantial shareholder in Magellan as well as its subsidiary, Magellan Petroleum Australia Limited.
 "There are a number of unresolved matters between the companies, both in the U.S. and in Australia, and we hope Sagasco's new management will take a constructive approach toward resolving these issues," he said.
 -0- 12/3/93
 /CONTACT: James R. Joyce of Magellan Petroleum Corporation, 203-525-1202/
 (MPET)


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

JG-PS -- NY044 -- 0268 12/03/93 14:13 EST
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Publication:PR Newswire
Date:Dec 3, 1993
Words:219
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