You know alot of volital sub-penny stocks aren't real companies at all and trade on pure hype, With their prices ranging from .0002 to .02 Magellan may be having a set back right now with the PPS @ .0003/.0004 but at least they are a real gas company with real potential going into the winter months with real custmers lined up! Look at the last part of the President's message;
We have been faced with another challenge and we believe that the correct solution has been undertaken. The Company remains very excited with the immense potential of its natural gas projects and is confident that the newest solution implemented to lower the BTU count for distribution and sale will be highly successful and natural gas revenues will once again commence. Magellan will continue to implement its acquisition strategy of acquiring formerly producing low-volume wells, refurbishing them and putting them back into production, particularly those located on the Chattanooga Shale.
Regards,
Apolinar V. Carcasona
President
Magellan Energy Ltd.
And also this part from the last PR issued 09/03/2009
A potentially huge consumer of natural gas in Tennesee has come to the forefront with TVA's announcement that a natural gas-fired electric plant in Rogersville is scheduled to come online in late 2011 and will require up to 160 million cubic feet of natural gas daily. Tennessee is now producing about 16 million cubic feet of gas, but has immense potential to produce a great deal more, with the most potential coming from the Chattanooga Shale.
Magellan and other area producers stand to benefit greatly from this enormous new demand source. 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 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.
"While this has admittedly been a setback for Magellan and the other producers in the area, a solution has been found and is being implemented," stated Apolinar Carcasona, President of Magellan Energy. "Our wells have realized significant natural gas production in the past, we believe that we have the resources for significant production to come, especially with the huge market opportunity that the Rogersville electric plant brings to area producers. In time we foresee a steady flow of gas and a lucrative future for Magellan and its shareholders. We will make every attempt to keep our shareholders apprised of progress as it is made."
