MGLG Magellan Energy Ltd New (CE)

Magellan Energy Ltd. (PINKSHEETS: MGLG) ("Magellan" or "the Company") is pleased to announce that it has completed connection of all gas lines from the Thomas Martin and the Robert Anderson Lease in Morgan County, Tennessee and that gas production has commenced.

This is a significant development for Magellan Energy. After much time, effort and hard work, the Company is now in a position to rapidly increase its daily natural gas production rate and make additions to its reserves. In order to obtain an accurate estimate on the daily output from both wells, gas must flow through the lines for a period of approximately one to two weeks. This waiting period will enable Magellan to get a better understanding of production, as readings will have stabilized enough to achieve a balanced, daily output count. Magellan plans further studies in order to exploit the full potential of this project.

The operators, TMD Energy Inc. will continue to work with Citizens Gas and monitor the situation to ensure there are no further disruptions.

Management believes that this is an exciting time for Magellan and its shareholders. The Company has entered the production phase on both projects and will soon realize a new revenue source. While the delays have been frustrating for the Company and shareholders, the company has successfully dealt with the high BTU issue and has connected the lines to the compressor and begun natural gas production. Magellan is well on its way to increasing revenues and value and will be disclosing production numbers as soon as they are available.

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 Tennessee 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.

Contact: MAGELLAN ENERGY LTD. Member of the Tennessee Oil and Gas Association Website: http://www.magellan-energy.com Phone: 1-866-365-4724