Magellan Energy, Ltd. announced that work is progressing on all three Tennessee projects. The company has installed a larger pump jack and a 118 engine, which is operating on natural gas, onto the Thomas L. Davidson well. During the last few weeks, logging on the adjoining leases delayed the completion of this project. With the logging now complete, KY-Tenn Oil Inc., the operators of the well, have connected a natural gas line to the well and the well has resumed production for oil. The well is expected to level out at a rate of 5 BOPD. At this rate, with current market prices, the well is expected to generate gross revenues of $150,000 per annum. Revenue from Magellan´s interest is expected to payout the project in 2008 and with continual revenues in the coming years. The company is pleased that the work over procedures for Robert Anderson wells is expected to be finalized shortly. The road is currently being rebuilt and electricity is being connected to the property. The new compressor, built specifically for this lease, has arrived from the manufacturer and is expected to be installed and operational in the upcoming weeks. Once operational the Anderson wells will be producing both oil and natural gas. This project is being completed in advance of a new gas pipeline serving the area. Once the new line is in operation this spring, the revenue from this project is expected to increase. The company is acquiring a larger interest in the Martin oil and gas field that is being converted into a waterflood project. In the interim, it will continue to produce oil and gas revenues for the company. The company is expecting first royalty payment for gas sales later this month.

Magellan Energy Ltd. announced that its management team were on site in Morgan County, Tennessee along with the operators of Ky-Tenn Oil Inc. to oversee the acid treatment project for the Thomas L. Davidson Well #1. Magellan Energy has been working with Ky-Tenn officials to re-work the Thomas L. Davidson Well #1 located in Morgan County, Tennessee. The treatment scheduled for November 26, 2007 continued on time and with success. The goal for this project was to frac this well with a combination of acid and water to increase productivity. The well was treated with 2000 GL of hydrochloric acid (15%) and 500GL of water. The well reacted very well to the treatment and reached a pressure of 250(lbs). Once all the fluids were introduced the well was closed off. On November 27, 2007 Ky-Tenn Oil Inc. re-opened the well which still maintained a pressure 0f 160 (Lbs) and swabbed the well for half the day. The oil presence was extremely strong, so that it was placed immediately back onto the pump. The size of the well compressor/motor is small but the well continued to produce 5 BOPD until it ran out of gas without pumping off. The results will not be finalized until the well stabilizes and maintains a steady flow.

Magellan Energy Ltd. announced that it has entered into a participation agreement with TMD Energy Inc. of Tennessee. Magellan Energy is pleased to be working with TMD Energy Inc., the operator on the Thomas D. Martin wells which have been structured as a long term project. The goal for this project is to waterflood targeted wells to increase productivity.