SOURCE: Magellan Energy Ltd.

March 30, 2006 15:35 ET

Magellan Energy Ltd. Annouces Signing of First Preliminary Agreement for Oil and Gas Property Purchase

ORLANDO, FL -- (MARKET WIRE) -- March 30, 2006 -- Magellan Energy Ltd. (OTC: MGGL) announced today that it has signed a preliminary agreement to acquire a producing oil and gas property. The identified property has existing production anticipated to be approximately 20,000 barrels per month. Estimated proven, producing, recoverable reserves amount to 48 Million Barrels. Additional potential recoverable reserves amount to 34.3 Million Barrels, with no values being assigned to additional probable reserves and natural gas.

This is the first anticipated purchase of a number of properties which Magellan Energy Ltd is negotiating for. The company intends to complete multiple acquisitions and become a significant independent oil and gas producer.

About Magellan Energy Ltd.

Magellan Energy Ltd intends to become a company specializing in the extraction and production of oil and gas. The company's vision is to establish and enhance the company's foundation for future growth by purchasing and developing properties that provide a balance between short and long-term reserves in both the oil and natural gas industries. The company is a technology driven company and is focused on the development, acquisition, stimulation, rehabilitation, and asset improvement of small to medium-sized oil and gas properties. The combination of energy fuel reserves and advanced yield technologies are anticipated to generate value for Magellan and its stakeholders as the company targets above-average growth in the energy sector. Oil and gas related activities will include acquiring additional properties with potential for increased production in addition to further development and drilling. The company will work to establish and maintain a significant inventory of undeveloped prospects. The company emphasis is on production, cash flow and reserve value by exploring for, developing, and purchasing oil and gas properties worldwide.

Safe Harbor Statement

The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the company's products and services, competition, new products and technological changes, as well as any and all "other risks" associated with business.

Contact Information

  • CONTACT:

    Magellan Energy Ltd.
    Phone (407) 574-6645
    Fax (407) 264-6576
    Email: Email Contact