SOURCE: Magellan Energy Ltd.

September 25, 2007 08:30 ET

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

TORONTO--(Marketwire - September 25, 2007) - Magellan Energy Ltd. (PINKSHEETS: MGLG), an independent oil and gas company, announced today that its President and CEO has been in Tennessee, Morgan County to meet with Ky-Tenn Oil Inc. officials who are the operators on our latest project. The meeting with KTO management was to develop plans for reworking the Davidson Well #1 and explore other possible projects.

Magellan Energy would like to welcome Mr. William D. Goodwin as an advisor to the company. Mr. Goodwin brings with him over 30 years of experience in the oil industry, specifically in Tennessee and its surrounding areas. His knowledge and understanding of these areas will serve as a great asset to Magellan and will provide valuable insights on future projects and ventures.

Magellan Energy is also pleased to be accepted as a voting member of the Tennessee Oil & Gas Association (www.tennoil.com). The Tennessee Oil and Gas Association is an organization of men and women involved in the exploration, development and production of oil and natural gas in Tennessee.

Magellan Energy's President, Mr. Akrivos, said, "Our visit to Tennessee and meeting with the officials of KTO has been a great experience. We are pleased with the progression of our current project with our operators Ky-Tenn Oil Inc. and are excited about possible future ventures between both companies. Various properties and projects were reviewed and we look forward to building up Magellan's portfolio of operations. We are taking every possible measure to ensure a positive and beneficial future for Magellan and its shareholders, advancing our 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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