SOURCE: Magellan Energy Ltd.

April 27, 2007 08:30 ET

Magellan Energy Ltd. Ventures Into the Trenton-Black River Formation

TORONTO -- (MARKET WIRE) -- April 27, 2007 -- MAGELLAN ENERGY LTD. (PINKSHEETS: MGLG) is pleased to announce that it has acquired a working interest in a well to be deepened in order to test the Trenton-Black River formation for oil and gas in Tennessee.

"The well, named the Pemberton-Baker #14, is located in an oil field in Morgan County, Tennessee, and has produced more than 3,000,000 barrels of oil from a shallow formation," said Bill Akrivos, CEO, of Magellan Energy Ltd. "Seismic was used to identify a significant fracture system some 1,200 feet deeper in the Trenton-Black River. The well we are deepening is one of two that are strategically positioned above the fracture. The Trenton-Black River formation provides oil and gas from New York to Tennessee and produces oil to the west of our area of interest at shallower depths and oil and gas to the east at deeper depths. Magellan Energy believes that the Trenton-Black River which has recently become the 'hot' formation throughout the Appalachian Basin will also produce in this area." Akrivos noted, "There have been few tests done to date and plans on changing that."

About MAGELLAN ENERGY LTD.

Magellan Energy Ltd. is a growing and experienced energy company focused on acquiring and partnering with existing producing junior properties in North America. Magellan Energy Ltd. is working to establish itself as a world-class oil and natural gas company, capitalizing on smart acquisitions and having great relations through partnerships.

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