MGLG Magellan Energy Announces LOI for Acquisition of $50 Million Oklahoma Properties
ORLANDO, FL, Mar 13, 2007 (MARKET WIRE via COMTEX) -- Magellan Energy Ltd. (PINKSHEETS: MGLG) is pleased to announce that it has signed a letter of intent with an Oklahoma Private Oil and Natural Gas Group to acquire a substantial portion of their proven and producing properties subject to an extensive due diligence study by Magellan and its advisors on the properties to be acquired.
The Properties that Magellan is currently negotiating are as follows:
Monarch Resources, LLC have producing properties in Garfield, Major, Logan, Kingfisher, Blaine, Noble and Payne Counties, with an estimated oil and gas recovery of $50 million in proven developed reserve properties. Most of these properties require minimal work and costs to increase the producing capabilities of the wells on the leases.
In total there is approximately $100 million in proven developed/undeveloped reserve properties in the Oklahoma area that Magellan is currently negotiating.
"The Acquisition of these producing properties in Oklahoma would create an excellent opportunity for Magellan to become a revenue generating company. This would allow Magellan to materialize its business plan and create capital appreciation to its shareholders."
The Oil and Natural Gas sector in Oklahoma is part of the huge Mid-Continent Oil Region that stretched from central Texas across Oklahoma to eastern Kansas. Within this vast reservoir of crude oil were some of the nation's greatest oil finds. TEXAS boasted of Desdemonia, Eastland, Ranger and Breckenridge; KANSAS has Neodesha, Augusta, Eldorado, and Paola; OKLAHOMA claimed Cleveland, Red Fork, Glenn Pool, the Osage, Burbank, Cushing, Healdton, Three Sands, Garber, the Greater Seminole, Oklahoma City, Garvin and many others.
About Magellan Energy
Magellan Energy's objective is to seek out and develop opportunities in the Oil and Natural Gas sectors that represent a low risk opportunity. As well, we aim to define larger projects that can be developed with Joint Venture partners or be entered into by a Joint Venture. Magellan is confident that these viable opportunities exist in a sector that holds long-term fundamental strength.
Magellan intends to exploit energy exploration opportunities through various partnerships available throughout the Southern United States and in doing so build significant Oil and Natural Gas reserves and capital appreciation to its shareholders.
Safe Harbor Statement
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the company's products and services, competition, new products and technological changes, as well as any and all "other risks" associated with business.
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