Magellan Petroleum Corp. reported net income of $1.6 million, or $0.03 per share, in the second fiscal quarter ending 12/31/2009. This was a strong improvement from the net loss of $525,000 or $0.01 per share, in the same quarter of 2008.

The company also reported revenues of $9.7 million in the most recent quarter, a large jump from the $5.2 million reported in the same quarter of 2008. Oil revenue increased 72% in the quarter due to a higher price realized per barrel and favorable exchange rates.

“Results for the second fiscal quarter represent an improvement over last year and last quarter. Revenues and profits were up over last year’s quarter due mostly to stronger energy prices, exchange rate fluctuation, and reduced production costs,” said William H. Hastings, the CEO of Magellan Petroleum Corporation.

Magellan Petroleum Corporation is in the process of rebalancing its oil and gas portfolio and took several actions during the quarter. The company purchased an 83.5% interest in an oil producing property in Montana for an undisclosed sum, and sold some assets in the Cooper Basin of Australia. Magellan Petroleum Corporation will book a gain of $5.9 million due to the sale.