Magellan Energy Ltd., an independent oil and gas company, announces progress to date for the water flood project on the Thomas L. Martin wells in Morgan County, Tennessee. Work is progressing on all three Tennessee projects, and the company is anticipating revenues from its current operations for 2008.
Magellan Energy Ltd. announces that it will be connecting the Thomas L. Martin wells to a new 15 mile long pipeline in early April 2008 to an interstate market. This new pipeline will enhance our natural gas output which is currently being sold at a rate of $5-6 per MCF to an increased rate of $9 per MCF.
Magellan Energy Ltd. has engaged the services of Barger Engineering Inc. of Evansville, Indiana. Barger Engineering was founded in 1950 and have engineered and designed the operations of over 100 water flood projects throughout the United States.
Magellan Energy's President, Mr. Akrivos, said, "We are pleased with the progress to date and anticipate increased productivity once we complete this project. Until then, we continue to focus on the oil production revenue which is estimated at today's prices at approximately $100,000 annually. The new pipeline will increase gas sales and revenues. We are extremely pleased that Barger Engineering Inc. will be overseeing this project phase and have confidence this will result in a positive outcome. The water flood is defined as a method of secondary recovery in which water is injected into the reservoir formation to displace residual oil. The water from the injection wells physically sweeps the displaced oil to adjacent production wells. Magellan continues to explore other areas of interest to increase revenues."
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