SOURCE: Magellan Energy Ltd.

September 11, 2007 08:30 ET

Magellan Energy Announces Participation Agreement

TORONTO--(Marketwire - September 11, 2007) - MAGELLAN ENERGY LTD., (PINKSHEETS: MGLG), an independent oil and gas company, announced today that it has entered into a participation agreement with Ky-Tenn Oil Inc. of Tennessee. The agreement for the existing well, known as the Thomas L. Davidson #1 is in place and work over procedures have progressed over the last week.

Ky-Tenn Oil Inc., the operator for Thomas L. Davidson well #1, has begun rebuilding the road leading to the site. Magellan Energy will work in conjunction with Ky-Tenn Oil Inc. to assess our property in order to re-establish oil and gas production on this well.

Magellan Energy's President, Mr. Akrivos, said, "We have continuously researched properties and found that the Thomas L. Davidson well #1 located on the Burville Oil field in Morgan county, Tennessee, to be a promising work over project. Our research on this particular property has shown positive results with the capability of being a producing well in the near future. Aside from this participation agreement, we still await further data on the Ellison wells 1-29. This data will enable us to determine the appropriate well to commence work over procedures on. I believe we are coursed in a direction that will enhance Magellan's position in the oil and gas industry."

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 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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