SOURCE: Magellan Energy Ltd.

January 08, 2008 08:30 ET

Magellan Energy Announces Robert Anderson Lease Agreement With TMD Energy Inc.

TORONTO--(Marketwire - January 8, 2008) - Magellan Energy Ltd. (PINKSHEETS: MGLG) an independent oil and gas company, announced today that it has entered into a second participation agreement with TMD Energy Inc. of Tennessee. The agreement is in place for several of the already existing wells on the Robert Anderson Lease located in Morgan County, Tennessee.

Magellan Energy Ltd. will be working with TMD Energy Inc. on the Robert Anderson Lease. This participation agreement includes five existing wells known as R.Anderson#2-permit#5534, R.Anderson#3-permit#6002, R.Anderson#3-permit#6241, R.Anderson#4-permit#6003, and R.Anderson#3-permit#6453. TMD Energy Inc. will continue as the operator of the wells and oversee any necessary work over procedures. Presently, the current wells are producing gas and oil, but will require additional compressors, pump jacks, rods and tubing to finalize the project.

Magellan Energy's President, Mr. Akrivos, said, "The company has made significant progress in 2007 and now will continue to expand its position in Morgan County, Tennessee with yet another project with TMD Energy Inc., the operator of these wells. This project has been structured with existing, producing wells to further our place in the oil and gas industry and as an additional income for Magellan. We are very pleased to be working with TMD Energy Inc. and once they have finalized all the necessary upgrades and installed the pump jack we will see an increase in production. Until such time, we will continue producing revenue from the gas and oil. Magellan continues additional wells, furthering our revenue status thus ensuring 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.

MAGELLAN ENERGY LTD.
Member of the Tennessee Oil and Gas Association

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