Plexmar Resources Inc V.PLE

Big news!!Mei.a get in before it doubles

[OPTSALES]

trying to help some of those who lost during this market lull (as I did). Read below, very excellent results; they very well may have just tripled their production!!! Before the rest of the market takes note, you may want to buy some!!! cheers Magnus Energy Announces Increased Senior Lending Facility and Operational Update Friday February 23, 1:21 pm ET CALGARY, ALBERTA--(CCNMatthews - Feb. 23, 2007) - Magnus Energy Inc. (TSX VENTURE:MEI.A - News; TSX VENTURE:MEI.B - News; "Magnus" or the "Company") is pleased to announce that it has entered into a Senior Secured Facility (the "Facility") with Brookfield Bridge Lending Fund Inc. for an amount up to $15.5 million. The Facility will be used to repay outstanding indebtedness, assist in financing the Company's capital expenditure program in 2007 and for general corporate purposes. ADVERTISEMENT Magnus also announces an operational update for its core areas in Kakwa and Antler and reports on operations generally. Kakwa The Company is pleased to update the status of its exploration well at Kakwa in the Deep Basin area of northwestern Alberta. In Kakwa, Magnus is participating in a farmin arrangement involving two major producing companies with Magnus paying 50% of the costs to earn a 45% BPO working interest and a 30% APO working interest in the Kakwa well. The first Kakwa well was drilled to its Total Depth of 3192 meters and cased on December 12, 2006. The well was completed in six separate gas bearing intervals and production testing operations have now been completed. The last zone completed after a fracture stimulation treatment flowed for a total of 31 hours at various rates of up to 3.6 mmcf per day of sweet gas at a flowing tubing pressure of 17,525 kPa (2540 psi). Production equipment for the well has been sized for gross volumes of 5 to 7 mmcf per day (which represents 833 to 1,167 BOE per day gross), the tie-in is underway and the well is anticipated to be on production by mid-March, 2007. Infrastructure is readily accessible providing access to the Cutbank and Musreau gas plants. Processing costs are reasonable at $0.39 per mcf for dehydration, processing, compression and transportation. Magnus also earns a similar working interest in an offsetting section, together with the right to participate in follow-up opportunities. Antler The Company and its partners have drilled and completed their first horizontal well (50% Magnus working interest) in the Torquay formation in the Antler area of southeastern Saskatchewan. The well was spudded on November 4 and rig released on November 13, 2006. The horizontal section of the well was drilled from intermediate casing point to a total measured depth of 2082 meters with a total open hole lateral length of 955 meters. The well was then completed (without a frac) and swabbing began on November 19 continuing to November 23, 2006, with very good inflow of oil and essentially no water. Production equipment was installed and the well was put on production on December 12, 2006. Initial production was 137 barrels of oil per day gross (68.7 barrels of oil per day net to Magnus) with no associated water. Gross production from the first 47 days totaled approximately 3,877 barrels of oil with 34 barrels of water. The gross production rate is currently 55 barrels of oil per day with associated water production of 5 barrels of water per day. These rates are very encouraging from an unstimulated horizontal well and the well will continue to be monitored closely until production volumes stabilize. The stabilized production volumes from this horizontal well will determine the Company's future path of vertical versus horizontal drilling to develop the Torquay formation on the Company's Antler lands. The gross cost to drill, case, complete and equip a horizontal well in Antler is estimated to be approximately $980,000. The Company and its partners are continuing to review new locations for additional horizontal wells and plan to continue drilling operations in the next few months. The Company believes there are approximately 30 similar locations on its Antler lands in the immediate vicinity of the first test horizontal well. The Company has approximately 54,000 gross acres (28,800 net acres) of land in the Antler area. Company Update The Company advises that cash flow from production and other items was adequate to cover its G&A and operating costs in January and February, 2007. The Company also advises that it is proceeding with its previously announced sale of certain non-core properties including its properties in Leahurst, Paradise Valley and North Esther, which sales are anticipated to close in April, 2007. The Company's current production is averaging 300 BOE per day from all of its properties prior to any property sales and the addition of incremental production from Kakwa. The Company anticipates that the sale of reserves and production associated with the non-core properties will more than be offset by the addition of reserves and production in Kakwa and Antler. Following the property sales, the Company plans on focusing its operations on its core areas of Kakwa and Antler. Funds for those operations will be derived from the increased debt Facility, the proceeds from the sale of non-core properties and cash flow. About Magnus Energy Magnus is a junior oil and gas company focused on the acquisition, exploration, exploitation and development of oil and natural gas properties in Western Canada. 37,836,353 Class A Shares 1,044,000 Class B Shares READER ADVISORY This press release includes forward-looking statements and assumptions respecting the Company's strategies, future operations, expected financial results, financial sources, commodity prices, costs of production and quantum of oil and natural gas reserves and discusses certain issues, risks and uncertainties that can be expected to impact on any of such matters. By their nature, forward-looking statements are subject to numerous risks and uncertainties that can significantly affect future results. Actual future results may differ materially from those assumed or described in such forward-looking statements as a result of the impact of issues, risks and uncertainties whether described herein or not, which the Company may not be able to control. The reader is therefore cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any intention or obligation to update or revise these forward-looking statements, as a result of new information future events or otherwise. In addition, the term BOE or BOE's may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion ratio of 6 mcf per one (1) BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved the contents of this release. Contact: Murray M. Stewart Magnus Energy Inc. President and Chief Executive Officer [phone] [phone] (FAX) Email: [e-mail] Stewart Larsen Magnus Energy Inc. Chief Financial Officer [phone] [phone] (FAX) Email: [e-mail] Suite 1650, AMEC Place Magnus Energy Inc. 801 - 6th Avenue S.W. Calgary, Alberta T2P 3W2 Website: www.magnusenergy.ca -------------------------------------------------------------------------------- Source: Magnus Energy Inc.