Magellan Energy Ltd.: Magellan Energy Ltd. Announces Work Completion on the Thomas Martin Lease

Published in Stocks and Investing on Wednesday, May 13th 2009 at 6:24 GMT, Last Modified on 2009-05-13 06:25:39 by Market Wire
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TORONTO--(Marketwire - May 13, 2009) - Magellan Energy Ltd. (PINKSHEETS: [ MGLG ]), an independent oil and gas company, announces that it has completed all preliminary work on the Thomas D. Martin Lease in Morgan County, Tennessee.

Citizens Gas has placed a large compressor where its Burrville gathering system ties into a 350 lb. pressure line. Citizens Gas receives its gas supply from the east Tennessee gas pipeline and from various local gas producing wells in Scott, Morgan, Fentress and Anderson counties, and will be "blending" the gas from all other wells in these counties to lower the BTU levels. All operators in the area have agreed to pay for the compressor lease.

The line carries nearly 10 million cubic feet a day. The blending process for the high BTU gas from the Burrville system will ensure that the BTUs will not exceed the critical 1100 level. Magellan intends to sell gas through this system from both the Martin and the Anderson leases.

While Magellan is close to the production on the Martin lease and, therefore, close to realizing revenues, estimation on gas production output is not currently available as initial results from the blending process are still pending. The Anderson well will eventually also be transporting its gas to market through this system.

Magellan's focus is on achieving the ability to sell the gas first hand, which will be complemented by production numbers. In addition to the gas sales, the Company anticipates an increase in oil production due to the added gas production coming from this well.

The Company is pleased with its progress to date, and is extremely optimistic about our prospects going forward. We would like to thank our loyal shareholders for their patience and support as we enter this next phase of our business.

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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