Magellan Energy for past few months is working closely with the operator, TMD Energy Inc. (TMD Energy) and Citizens Gas, in taking the essential steps to re-link the Anderson well.
Citizens Gas has set in a compressor to facilitate the operators to tie in the lines from the Anderson lease. There will be many other lines from other wells in the nearby region coming into this compressor to obtain a blending process.
Magellan Energy has engaged the issue from Federal regulators for the mandate on maintaining BTU levels of 1100 or less and has come to a declaration. They will be blending the gas from the Anderson lease with other wells in the region to achieve a lower BTU level and permit sales to start.
It is quite unfortunate that the company has been facing long postponements but it is pleased with the progress so far and expects production to start in May 2009. The compressor has been set in by Citizens Gas and the company is in the process of tying in its lines to start production. TMD Energy has done an unbelievable job meeting and working with Citizens Gas representatives to resolve its issue with this well and will persist to focus on the production and revenue phase of the Robert Anderson Lease.
Magellan Energy expects that blending the gas will eventually decrease the company’s BTU levels allowing it to continue with gas sales from this well. The company is not alone on this, this region has many other wells facing the same issue and by working together the company has tackled this problem and look forward to putting this well into production. The next coming weeks will be an exciting time for Magellan Energy and its shareholders as the company is preparing to take in long awaited revenues from this well. It has been a trying time for all of Magellan Energy but it will continue to work extremely hard in achieving a positive future for Magellan Energy and its shareholders.
