SOURCE: Magellan Energy Ltd.

October 24, 2007 08:30 ET

Magellan Energy Announces Participation Agreement

TORONTO--(Marketwire - October 24, 2007) - MAGELLAN ENERGY LTD. (PINKSHEETS: MGLG), an independent oil and gas company, announced today that it has entered into a participation agreement with TMD Energy Inc. of Tennessee.

Magellan Energy is pleased to be working with TMD Energy Inc., the operator on the Thomas D. Martin wells which have been structured as a long term project. The goal for this project is to waterflood targeted wells to increase productivity. A petroleum consulting firm will provide its recommendations on which wells are the best candidates for our waterflood project. Their criteria will be based on geology of the area and field production records provided by TMD Energy Inc. The wells are currently producing 3 BOPD and natural gas. A compressor will be added which will significantly increase the production of natural gas.

Magellan Energy's President, Mr. Akrivos, said, "We are very pleased to announce yet another project in Tennessee and to be working with TMD Energy Inc. This project will take some time to execute but our initial estimates of recoverable oil are in excess of 60,000 barrels. This project will contribute to our revenue stream and we look forward to increasing production significantly through the waterflood project. We are continuing on our quest to place Magellan as an aggressive, revenue-producing company 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.

MAGELLAN ENERGY LTD.

Contact Information