Magellan Energy Ltd.: Magellan Energy Announces Progress on the Robert Anderson Well

Published in Stocks and Investing on Tuesday, May 12th 2009 at 6:49 GMT, Last Modified on 2009-05-12 06:51:01 by Market Wire
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TORONTO--(Marketwire - May 12, 2009) - Magellan Energy Ltd. (PINKSHEETS: [ MGLG ]), an independent oil and gas company, announces progress to date for the Robert Anderson Lease in Morgan County, Tennessee. The well had experienced some problems with the high BTU levels in the past and had been shut in. Work is progressing on the well to prepare it for the production phase. Magellan Energy is anticipating production revenues from this well for 2009.

Management has been, for some months now, working closely with our operator, TMD Energy Inc. and Citizens Gas, in taking the necessary steps to re-connect the Anderson well. Citizens Gas has set in a compressor to enable the operators to tie in the lines from the Anderson lease. There will be several other lines from other wells in the surrounding area coming into this compressor to achieve a blending process.

Magellan Energy Ltd. has engaged the issue from Federal Regulators regarding the mandate on maintaining BTU levels of 1100 or less and has come to a resolution. They will be "Blending" the gas from the Anderson Lease with other wells in the area to achieve a lower BTU level and allow sales to begin.

It is quite unfortunate that we have been faced with long delays but we are pleased with the progress to date and anticipate production to begin in May 2009. The compressor has been set in by Citizens Gas and we are in the process of tying in our lines to begin production. TMD Energy Inc has done an incredible job meeting and working with Citizens Gas representatives to resolve our issue with this well and will continue to focus on the production and revenue phase of the Robert Anderson Lease. We anticipate that "Blending" the gas will ultimately reduce our BTU levels allowing us to continue with gas sales from this well. We are not alone on this, this area has several other wells facing the same issue and by working together we have tackled this problem and look forward to placing this well into production. The next coming weeks will be an exciting time for Magellan and its shareholders as we prepare to take in long awaited revenues from this well. It has been a trying time for all of us but we continue to work extremely hard in achieving a positive future for Magellan and its shareholders.

About Magellan Energy: Magellan Energy is a publicly traded independent oil and gas company (PINKSHEETS: [ MGLG ]). The company is actively acquiring oil and gas leases, producing properties, mineral rights, and surface interests in Tennessee and Oklahoma. Once acquired, the company intends to develop each property to maximize the income from each property by re-establishing production, refurbishing and improving the existing production and operations.

Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.

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