Magellan Energy, Ltd. (MGLG)

[lookoverthere0]

BASED SOLELY ON GAS PRODUCTION:

and with the following assumptions
The world petroleum industry says that the average amount of natural gas from a well =

10,000 m3 - 50,000 m3 of natural gas per day per well

times price of natural gas / m3 (call it .33)

times the number of wells (24)

= $79.2k - $396k per day production.

= $2.45 million - $12.28 million per month

= $29.4 million - $147 million per year

"The upper paleozoic reserves take up 76.4% of the proven natural gas reserves. The permeability of sandstone gas reservoir is 0.5~2.0 md. Poor in reserves, on average, the gas-bearing area per square kilometer only deposits 1.3 billion m3 of natural gas reserves. The average daily output of a natural gas well is only about 10,000 m3. The lower Paleozoic reserves take up 23.6%. With higher permeability in carbonate gas reservoirs, the average daily output of a well reaches about 50,000 m3. "

ANN. PROD. (x24 wells) Shares O.S. (17B) Shares Total (30 B)

$29,400,000.00 $0.001729 0.000980
$35,000,000.00 $0.002059 0.001167
$40,000,000.00 $0.002353 0.001333
$45,000,000.00 $0.002647 0.001500
$50,000,000.00 $0.002941 0.001667
$55,000,000.00 $0.003235 0.001833
$60,000,000.00 $0.003529 0.002000
$65,000,000.00 $0.003824 0.002167
$70,000,000.00 $0.004118 0.002333
$75,000,000.00 $0.004412 0.002500
$80,000,000.00 $0.004706 0.002667
$85,000,000.00 $0.005000 0.002833
$90,000,000.00 $0.005294 0.003000
$95,000,000.00 $0.005588 0.003167
$100,000,000.00 $0.005882 0.003333
$105,000,000.00 $0.006176 0.003500
$110,000,000.00 $0.006471 0.003667
$115,000,000.00 $0.006765 0.003833
$120,000,000.00 $0.007059 0.004000
$125,000,000.00 $0.007353 0.004167
$130,000,000.00 $0.007647 0.004333
$135,000,000.00 $0.007941 0.004500
$140,000,000.00 $0.008235 0.004667
$145,000,000.00 $0.008529 0.004833
$147,000,000.00 $0.008647 0.004900