SOURCE: Magellan Energy Ltd.

February 22, 2007 08:30 ET

Magellan Energy Ltd. Announces Activation for Ten Well Recompletion Program in Oklahoma

ORLANDO, FL -- (MARKET WIRE) -- February 22, 2007 -- Magellan Energy Ltd. (PINKSHEETS: MGLG) announced today that their "Recompletion Program" for over 100 oil & gas properties in Oklahoma will commence immediately. Proex Energy Management from Houston Texas will be the petroleum consulting company directing the field operations on the first "ten well package" recompletion program to begin immediately.

Magellan management said, "These first ten wells will be our starting group of wells to provide fairly fast production revenues for the company, and will be the catalyst for our planned 100 well development and recompletion program. We intend to evaluate the best available existing wells and re-equip them with new downhole and surface equipment, and perform some remedial work-over services to get these wells back into optimum production status again. Many of these wells have potential zones for producing oil and gas in unproduced horizons in the well bores and we will attempt to produce these zones as well as implementing recompletion techniques on many of the other zones in these wells."

The first well that Magellan will be recompleting will be the "Martens 1-13" in Major County, Oklahoma. This well was previously drilled by another operator in the early 1980s and still has good oil and gas production reserves in the producing reservoirs. The primary producing zone will be the "Mississippi Lime," with other potential zones in the upper the well bore. It is anticipated to produce some oil, but primarily gas.

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.

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