Stratex Oil offers to acquire Magellan Petroleum for $2.30 per share

Stratex Oil & Gas Holdings (STTX) announced that it has made an offer to acquire Magellan Petroleum (MPET) for $2.30 per share in cash and stock. The offer was made in a letter to Magellan's CEO with a copy to the Board of Directors yesterday after the CEOs of the two companies had previously discussed Stratex's interest in acquiring Magellan, but had failed to come to any definitive understanding. At $2.30 per share, the offer provides a 137% premium to Magellan's shareholders based on Friday's closing price of $.97 and is 34% above Magellan's 52-week high of $1.72. The total value of the transaction is approximately $124M. Stratex is fully committed to pursuing this transaction, and has secured committed financing to complete the cash portion of the offer. Stratex management believes the value of Magellan's assets has not been realized in the public markets. Stratex management strongly believes that a combination of the two companies will increase access and visibility in the financial markets and unlock substantial value for shareholders of both companies.