CALGARY, ALBERTA — (Marketwire) — 02/08/12 — MAGNUM ENERGY INC. (the “Company”) (TSX VENTURE: MEN) is pleased to announce that construction of the pipeline at the Provost Viking Oil Project has commenced. The pipeline will transport the solution natural gas produced from the first horizontal oil well that was drilled, completed and tested as previously announced on October 12, 2011. The 14-7 horizontal oil well and a multi-well battery are also being prepared for tie-in which is anticipated to occur within the next two weeks. Management anticipates that stabilized rates from the horizontal oil well will be established during a period of up to 60 days.
The Company has also commenced the preparations to re-enter two existing vertical wellbores with Viking oil potential similar to its Provost 5-7 vertical recompletion which resulted in stabilized production of approximately 20 gross barrels (10 net barrels) of oil per day.
About Magnum Energy Inc.
Magnum Energy is a junior oil and gas producer with operations located in the Western Canadian Sedimentary Basin. The Company produces from Viking oil operations in Alberta, gas operations in Alberta and maintains 100% ownership of the Sedalia gas facility in East-Central Alberta.
ON BEHALF OF THE COMPANY
Richard Nemeth, President & CEO
Forward-looking statements:
This news release contains certain forward-looking statements, including management–s assessment of future plans and operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Magnum–s control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations, including the adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory bodies. Actual results could differ materially from those expressed in or implied by these forward-looking statements. No assurances can be given that any of the events anticipated by any forward-looking statements will transpire or occur, or if any of them do so, what benefits Magnum will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Magnum or persons acting on behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release and the documents referred to herein, are made as at the date of this news release, and Magnum does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Magnum Energy Inc.
Richard Nemeth
President & CEO
604.218.1479
Boardmarker Group
Dean Stuart
403.517.2270