SOURCE: Magellan Energy Ltd.

September 27, 2007 08:30 ET

Magellan Energy Announces Oil Production

TORONTO--(Marketwire - September 27, 2007) - Magellan Energy Ltd. (PINKSHEETS: MGLG), an independent oil and gas company, announced today that the re-work program has been completed and the results were positive for the Thomas L. Davidson Well #1 in Morgan County, Tennessee. We are pleased to announce that the well has been placed back into production generating 2BOPD (barrels of oil per day). Our earlier road work program to the site has been completed and the half-mile road to the well has been rebuilt.

Magellan plans to continue production on the well for the next 30 days at a rate of 2BOPD. Thereafter, we will commence the acid stimulation phase of the operation under the guidance of Ky-Tenn Oil Inc., the operators for this project. We will treat or frac the well after a month of current production. This procedure will fracture the formation, stimulate the well with acid under pressure which we anticipate will open up the channels allowing oil to flow and increase the well's productivity.

Magellan Energy's President, Mr. Akrivos, said, "We are extremely pleased that the Davidson well project is producing and will be a revenue stream for Magellan. Our combined efforts for re-completion projects have started to bear fruit. I would like to thank all of you who have supported us throughout this time. We look forward to adding further projects into our revenue stream and becoming entrenched in the oil and gas industry."

About Magellan Energy: Magellan Energy Ltd. 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 Texas 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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