Magellan Petroleum announced that on May 10, the company entered into a Series A Convertible Preferred Stock Purchase Agreement with One Stone Holdings, an affiliate of One Stone Energy Partners, a New York based private equity firm focused on investments in the oil and gas industry. Pursuant to the terms of the Series A Purchase Agreement, upon the fulfillment of certain customary closing conditions, Magellan will issue and sell to One Stone 19.24M shares of Series A Convertible Preferred Stock for aggregate cash proceeds of $23.5M. Subject to certain conditions, including stockholder approval to the extent required by NASDAQ, each share of Series A Preferred Stock will be convertible into one share of Magellan's Common Stock at an initial conversion price of $1.22 per share, representing a 20% premium to the volume-weighted average closing price per share of Common Stock for the ten trading days preceding the signing of the Series A Purchase Agreement. Furthermore, the company will pay no capital raising advisory fees or issue any warrants in relation to this transaction. The company and One Stone anticipate that the closing of the transactions contemplated by the Series A Purchase Agreement will occur on or before May 22. The company intends to use the proceeds of this transaction, in addition to the company's $15M in cash and equivalents at March 31, to fund the $10M-$20M necessary for the drilling, completion, and execution of a CO2-enhanced oil recovery pilot project at Poplar, including the purchase of necessary CO2 volumes; the current cash flow loss from operations of approximately $1M per month until the ramp up of gas sales from the company's onshore Australian assets in calendar year 2014; and the company's efforts to further establish the value of its United Kingdom acreage through the participation in one or more exploratory wells in calendar year 2014.