Magellan Energy Announces Acquisition of Lankford Lease in Morgan County, Tennessee
June 18 2009 - 1:00PM
Marketwired
Magellan Energy Ltd. (PINKSHEETS: MGLG) ("Magellan" or "the
Company"), an independent oil and gas company, announces that it
has signed a participation agreement with TMD Energy for the
Lankford Lease in Morgan County, Tennessee. The lease/agreement
consists of eleven wells that are currently producing natural gas.
We are extremely excited to begin another project with TMD
Energy Inc., who will be the operators of this lease. The
acquisition of this lease has occurred at an opportune time, as
operators in this area are now able to get their gas to market via
the new compressor set in by Citizens Gas. The compressor blends
the gas from all area producers thereby resolving the high BTU
issue that previously prevented producers from selling their gas.
The eleven wells on the property produce gas from the Monteagle
formation and are currently tied into a collection system, which is
tied into Citizens Gas Utility District.
The operators, TMD Energy Inc., will work with Magellan Energy
to ensure that the wells continue to produce natural gas and
additional revenues for both parties. Magellan has an option on
this lease to frac two shale wells in the future, which would
increase the gas production per well on a daily basis. These two
wells will be relatively easy to frac as they are located on the
thin exposed part of the Chattanooga Shale in Eastern
Tennessee.
With gas production from a total number of twenty-four producing
wells, The Company will continue to execute its business strategy
of acquiring additional gas and oil leases. Magellan Energy is
embarking on a new era devoted to achieving a profitable future for
the Company.
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 Website: http://www.magellan-energy.com Phone:
1-866-365-4724
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