SOURCE: Magellan Energy Ltd.

December 05, 2007 08:30 ET

Magellan Energy Announces Update on the Thomas L. Davidson Well #1

TORONTO--(Marketwire - December 5, 2007) - Magellan Energy Ltd. (PINKSHEETS: MGLG), an independent oil and gas company, announced today that its management team were on site in Morgan County, Tennessee along with the operators of Ky-Tenn Oil Inc. to oversee the acid treatment project for the Thomas L. Davidson Well #1.

Magellan Energy has been working with Ky-Tenn officials to re-work the Thomas L. Davidson Well #1 located in Morgan County, Tennessee. The treatment scheduled for November 26, 2007 continued on time and with success. The goal for this project was to frac this well with a combination of acid and water to increase productivity. The well was treated with 2000 GL of hydrochloric acid (15%) and 500GL of water. The well reacted very well to the treatment and reached a pressure of 250(lbs). Once all the fluids were introduced the well was closed off. On November 27, 2007 Ky-Tenn Oil Inc re-opened the well which still maintained a pressure 0f 160 (Lbs) and swabbed the well for half the day. The oil presence was extremely strong, so that it was placed immediately back onto the pump. The size of the well compressor/motor is small but the well continued to produce 5 BOPD until it ran out of gas without pumping off. The results will not be finalized until the well stabilizes and maintains a steady flow.

Magellan Energy's President, Mr. Akrivos, said, "We are very pleased with the initial results of the test and that the well did not pump off during the first day of production. Ky-Tenn Oil Inc. will be adding a larger motor to the well to maintain a steady flow throughout the day without disruption to production thus enabling us to get a steady barrel count. We have to understand that this well was treated in the past and although we did not get the pressure of 1500 lbs, we anticipated the well still reacted very nicely to this treatment and has come back with an increased production rate. Until the well stabilizes and we upgrade the motor we will be unable to give continuous, accurate barrel count. This success is the first stage of many for Magellan and its shareholders. We will continue to focus on our quest to place Magellan on top as a reputable, revenue producing company in the oil and gas industry with proven results for 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 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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