Magellan Energy Ltd. Issues Additional Information on the Potential for the Lankford Lease
22 Juillet 2009 - 7:11PM
Marketwired
Magellan Energy Ltd. (PINKSHEETS: MGLG) ("Magellan" or "the
Company") is pleased to provide shareholders with additional
information on its Lankford Lease. The Lankford Lease, comprising
of 11 producing wells, is located on the Chattanooga Shale. A
recent report on the Chattanooga shale reserve potential (soon to
be available on our website) confirms the Company's own due
diligence and its subsequent participation in the project with its
partner, TMD Energy.
A five county area of Late Devonian Age Chattanooga Shale gas
production exists under the Cumberland Plateau. These counties are
Scott, Morgan, Fentress, Anderson, and Campbell Counties. The
thickness of the Chattanooga Shale under these counties ranges from
30 feet to a known maximum of 828 feet. The natural gas in this
reservoir is absorbed onto the surface of organic matter in the
Chattanooga black shale. The Chattanooga Shale under the Plateau is
in the peak oil phase of thermal maturity and is still generating
hydrocarbons.
The Lankford Lease wells are located in Morgan County.
Currently, the wells are producing from the Monteagle formation.
Monteagle limestone is a Mississippian age formation that is a
consistent oil and gas producing formation. Other Monteagle gas
wells in the area are still producing commercial quantities of gas
after 30 years. The Lankford Lease wells have been drilled to the
shale formation and the Company is confident that a significant
amount of gas from the formation exists on their lease. The
Chattanooga Shale gas reserves under the Cumberland Plateau are
substantial and horizontal drilling and re-completion of existing
wells will be an important factor in developing them. The Company
intends to frac at least two of the wells at the earliest
opportunity to increase natural gas production and is considering
additional horizontal drilling to maximize long-term gas production
from the Chattanooga Shale.
Reserve estimates indicate a conservative gas in place value of
3.198 bcfg/mi.2 for the area under the Cumberland Plateau. These
calculations assume a gas content of 20 scf/ton of gas in the
Chattanooga Shale. Miller Petroleum, Inc. is in possession of
geochemical data that justifies this as a minimal gas in place
number.
Miller Petroleum, Inc., KY-TENN Oil, and Knox Energy, LLC are
presently developing the natural gas resource on the Cumberland
Plateau. There are numerous existing wells on the Cumberland
Plateau that can be re-completed as Chattanooga Shale gas wells.
The Lankford Lease wells have been drilled to the shale and
Magellan believes they are excellent prospects to tap into this
reserve.
According to the EIA Annual Energy Outlook 2009, U.S dependence
on imported oil is expected to decline over the next 25 years --
due to high prices and limited resources; and natural gas
production, led by gas shales, is expected to provide the majority
of growth in gas supply. As the economy improves, we should see a
marked improvement in the price of natural gas and in the overall
value of the Chattanooga Shale gas reserves.
In other corporate news, the Company is currently working on
updating its corporate website and will soon have it completed. In
regards to the highly anticipated production numbers, they have
obviously not been received in the time frame anticipated and we
ask our shareholders for their continued patience as we will have
an update shortly.
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 byre-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
Magellan Energy (CE) (USOTC:MGLG)
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