(FAQ's) Frequently Asked Questions

1.  Where are Magellan’s offices?
2.  Who is Magellan’s Transfer Agent?
3.  If the address/name of the shareowner has changed, or a certificate is lost, who
     should I contact?
4.  Where are Magellan’s interests located?
5.  Is Magellan the operator on these leases?
6.  What is an Oil and Gas Lease?
7.  Is Magellan planning on becoming a reporting company and applying for listing on a      more senior exchange?
8.  How did oil and gas form? Where does it come from?
9.  What are production projects?
10.  How many gallons of oil are in a barrel?

1. Where are Magellan’s offices?

Magellan Energy Ltd.
1370 Hurontario St.
Mississauga, Ontario L5G 3H4
Office:  416-827-1673

2. Who is Magellan’s Transfer Agent?

Global Sentry Equity Transfer Inc.,
Tel:   905-891-1515
Fax:  905-891-1565
www.gsetransfer.com

3. If the address/name of the shareowner has changed, or a certificate is lost, who should I contact?

Global Sentry Equity Transfer Inc.,
Tel:   905-891-1515
Fax:  905-891-1565
www.gsetransfer.com

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4.  Where are Magellan’s interests located?

The Company’s primary area of interest is in domestic leases in the United States, most recently Tennessee, Oklahoma and Kentucky.  Currently the Company has a portfolio of 23 oil and natural gas wells that are located in Morgan County, Tennessee. 

5.  Is Magellan the operator on these leases?

No, Magellan’s partner, TMD Energy is the operator of the leases as they have the staff, the equipment and operate locally in Morgan County, which is the location of the leases.

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6.  What is an Oil and Gas Lease?

The Oil and Gas Lease is not a lease in the traditional landlord/tenant sense.  An Oil and Gas Lease is both a conveyance and a contract.  The Lessor (the owner of the minerals) conveys to the Lessee (such as Magellan or TMD) the right to explore for and produce oil and gas.  The oil and gas lease is also a contract between the Lessee and the Lessor under which the rights and obligations of the parties are stated concerning the use of the land to explore for and produce oil and gas, for certain consideration and subject to certain express and implied promises.

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7.  Is Magellan planning on becoming a reporting company and applying for listing on a more senior exchange?

Not at this time.  As the Company continues to advance its business plan of acquiring formerly producing low-volume wells, refurbishing them and putting them back into production, it should reach a critical mass where it will be in the position to reconsider.

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8.  How did oil and gas form? Where does it come from?

Oil and natural gas were formed hundreds of millions of years ago and are the result of plant and animal remains or organic material from within the earth. For the most part, these plants and animals lived in seas, and their remains settled on the ocean floor together with sediment which washed down from exposed earth and rock. This sediment ranged in size from molecules that dissolve in water to small boulders. In later periods, these layers of organic material and sediment were covered by more sediment which, as a result of time and pressure, converted to layers of sedimentary rock.

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9.  What are production projects?

Production projects are oil and gas properties that are already in production, typically producing and selling oil and gas. Sometimes production projects require rework / repairs.

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10.  How many gallons of oil are in a barrel?

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