Magellan Energy Ltd. Announces Work Completion on the Thomas Martin Leaseadmin
Magellan Energy Ltd. a publicly traded independent oil and gas company, announces that it has completed all preliminary work on the Thomas D. Martin Lease in Morgan County, Tennessee.
Citizens Gas has placed a large compressor where its Burrville gathering system ties into a 350 lb. pressure line. Citizens Gas receives its gas supply from the east Tennessee gas pipeline and from various local gas producing wells in Scott, Morgan, Fentress and Anderson counties, and will be “blending” the gas from all other wells in these counties to lower the BTU levels. All operators in the area have agreed to pay for the compressor lease.
The line carries nearly 10 million cubic feet a day. The blending process for the high BTU gas from the Burrville system will ensure that the BTUs will not exceed the critical 1100 level. Magellan intends to sell gas through this system from both the Martin and the Anderson leases.
While Magellan is close to the production on the Martin lease and, therefore, close to realizing revenues, estimation on gas production output is not currently available as initial results from the blending process are still pending. The Anderson well will eventually also be transporting its gas to market through this system.
Magellan’s focus is on achieving the ability to sell the gas first hand, which will be complemented by production numbers. In addition to the gas sales, the Company anticipates an increase in oil production due to the added gas production coming from this well.
The Company is pleased with its progress to date, and is extremely optimistic about our prospects going forward. We would like to thank our loyal shareholders for their patience and support as we enter this next phase of our business.