Lankford County Lease

Magellan has entered into a new participation agreement with TMD Energy for the Lankford Lease also located in Morgan County, Tennessee. The lease/agreement consists of eleven wells that are currently producing natural gas from the Monteagle formation.     Magellan has an option on this lease to frac two shale wells in the future, which would increase the gas production per well on a daily basis. These two wells will be relatively easy to frac as they are located on the thin exposed part of the Chattanooga Shale in Eastern Tennessee.