CALGARY, ALBERTA--(Marketwire - Sept. 7, 2012) - Magnum Energy Inc. (the "Corporation" or "Magnum") (TSX VENTURE:MEN) is pleased to announce flow test results from its most recently completed horizontal well in the Provost Viking light oil property in eastern Alberta. The well, in which Magnum has a 50% working interest, was operated by the Corporation and drilled with a 665 meter horizontal leg and completed with an eleven stage fracture stimulation. The well test flowed at 230 barrels of oil per day over 5.4 days. The testing was performed under a restricted basis using a 7.94 mm choke and flowing tubing pressures of between 2000 to 3000 kPa. The well is currently shut in for two days to perform standard pressure build up tests required by the Energy Resources Conservation Board. Upon completion of the testing, the well will be equipped and placed on production.
The Corporation is in the process of licensing a fourth horizontal location in the same section which will take approximately four weeks. Magnum anticipates drilling operations to commence as soon as possible upon licensing. The Corporation has identified seven offset drilling locations in this section and plans to continue to focus on the Viking oil lands where no reserves have been assigned to date.
Richard Nemeth, President and CEO, comments, "We are very pleased with the results of the last two wells, especially this last well, that will add proven producing reserves where the Corporation had zero net asset value in the last reserve report".
About Magnum Energy Inc.: Magnum is a Canadian oil and natural gas exploration, development and production company with operations based in the Province of Alberta, and an administrative office in Vancouver, British Columbia. The Company's mandate is to acquire and develop significant working interests in a variety of oil and natural gas prospects. The Company's public filings may be found at www.sedar.com. To find out more about Magnum visit our website at www.magnumenergyinc.com.
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.