SOURCE: Magellan Energy Ltd.

December 18, 2007 08:30 ET

Magellan Energy Announces Update on the Thomas D. Martin Wells

TORONTO--(Marketwire - December 18, 2007) - Magellan Energy Ltd. (PINKSHEETS: MGLG), an independent oil and gas company, announced today that it is selling natural gas from wells on the Thomas D. Martin project in Morgan County, Tennessee in which it holds a 20% working interest. The operators for these wells, TMD Energy Inc., stated that the Citizens Gas Utility District have recently reconfigured the gas pipelines to allow gas from the wells to enter its system. A compressor has also been installed to increase production volume.

Magellan Energy is pleased to announce that the Martin lease is a mature producing oil and gas property that is being prepared for waterflooding. This ongoing project with TMD Energy Inc. will take some time to complete but with the newly installed compressor we will have increased gas production and revenue for Magellan Energy Ltd. The water flood project must still be subject to further research, geological surveys and studies to be properly executed. Until such time is determined, the wells will continue to operate at their new capacity, generating revenue with the new lines.

Magellan Energy's President, Mr. Akrivos, said, "We are very pleased at the progress that has been made up to date on the Martin project which will take some time to properly execute. TMD Energy Inc. has done an excellent job ensuring the wells maintain production and we are extremely happy to be working with them. This is our company's second successful project in Tennessee, thus establishing Magellan as a reputable, revenue-producing company in the oil and gas industry. In addition, we are in the final stages of developing a third project in Tennessee, which will be announced in the near future."

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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