July 18, 2007 08:30 ET

Magellan Energy Ltd. Announces Update on Oklahoma Projects

TORONTO--(Marketwire - July 18, 2007) - MAGELLAN ENERGY LTD. (PINKSHEETS: MGLG), a growing and experienced energy company focused on acquiring and partnering with existing producing junior properties in North America, announces its updates for the Company' current operations in Oklahoma.

The operations in Major County, Oklahoma on the "Martens 1-13" wells have been terminated and will no longer be an ongoing interest or project for Magellan Energy Ltd.

The Company will not continue operations in Major County, Oklahoma. The results from the "Martens 1-13" wells have proven to be less than adequate for the Company to justify further work on. Subsequently, all wells have been capped and the operating team has been scheduled to begin work on Magellan' next target location.

Field operators have identified areas of interest that can be reached in Canadian County, Oklahoma. Magellan Energy Ltd. is constantly and aggressively seeking other areas of interest to further its inventory of wells. The Canadian County has been looked at by Magellan Management as the next primary target for drilling operation.

"The operations in Major County have not yielded the results that we had anticipated. Therefore, operations on these particular wells have stopped and we will look to move forward to Canadian County. This is the nature of the business, we were under no illusions that this would be easy or that we would hit a grand slam right off the start. Of course we are disappointed at the results of the 'Martens 1-13' wells but we must persevere and not let any negative results hinder our progress and future projects. Our organization has been constantly researching various areas of interest that will leave Magellan Energy Ltd. with a vast inventory of wells and a continuous roll of projects," said Mr. Akrivos, CEO, Magellan Energy Ltd. "I do not see this as a setback but more of a bump on the road, this is the nature of this business, and the best that we can do as a Company is maintain our focus and rollout our business plan accordingly," added Mr. Akrivos.

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.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe," "expect," "estimate," "project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made Magellan Energy Ltd. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.