Magellan Energy Ltd. -- Tennessee Revenue and Project Update
February 25 2008 - 9:15AM
Marketwired
TORONTO , an independent oil and gas company, announces that
work is progressing on all three Tennessee projects and that the
company is anticipating revenues from its current operations for
2008.
Magellan Energy Ltd. has installed a larger pump jack and a 118
engine, which is operating on natural gas, onto the Thomas L.
Davidson well. During the last few weeks, logging on the adjoining
leases delayed the completion of this project. With the logging now
complete, KY-Tenn Oil Inc., the operators of the well, have
connected a natural gas line to the well and the well has resumed
production for oil. The well is expected to level out at a rate of
5 BOPD. At this rate, with current market prices, the well is
expected to generate gross revenues of $150,000USD per annum.
Revenue from Magellan's interest is expected to payout the project
in 2008 and with continual revenues in the coming years.
Magellan Energy Ltd. is pleased that the work over procedures
for Robert Anderson wells is expected to be finalized shortly. The
road is currently being rebuilt and electricity is being connected
to the property. The new compressor, built specifically for this
lease, has arrived from the manufacturer and is expected to be
installed and operational in the upcoming weeks. Once operational
the Anderson wells will be producing both oil and natural gas. This
project is being completed in advance of a new gas pipeline serving
the area. Once the new line is in operation this spring, the
revenue from this project is expected to increase.
Magellan Energy's President, Mr. Akrivos, said, "We are
acquiring a larger interest in the Martin oil and gas field that
that is being converted into a waterflood project. In the interim,
it will continue to produce oil and gas revenues for the company.
We are expecting our first royalty payment for gas sales later this
month. We look forward to the completion of the new pipeline to
resume our gas sales. Currently our buyer is not able to
accommodate the gas due to the high BTU levels. This problem will
be rectified when the new pipeline is operational.
"We are pleased with the efforts of our operator for this
project and the fact we are staying on schedule. Magellan continues
to explore other areas of interest to increase revenues, thereby
increasing shareholders' value."
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.
MAGELLAN ENERGY LTD. Member Of the Tennessee Oil and Gas
Association Bill Akrivos Website: http://www.magellan-energy.com
Phone: 1-866-365-4724
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