Magnum Energy Inc.

Magnum Energy Inc.

October 16, 2007 09:30 ET

Magnum Closes Acquisition of Countess Limited Partnership

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2007) - Magnum Energy Inc. (the "Company") (TSX VENTURE:MEN) is pleased to announce it has closed the acquisition of the assets of Countess Production limited Partnership LP ("Countess LP") a British Columbia Limited partnership and certain assets beneficially owned by Pompano Holdings Inc. The assets include those held on behalf of Countess LP by its general partner, Countess Resources Ltd. (the "General Partner"). The effective closing date of the acquisition was September 1, 2007.

The assets purchased include various oil and gas interests east of Calgary, Alberta. These include a forty percent working interest in one producing oil well. It also includes a forty percent interest in another well that was subsequently shut-in by the operator, Silverwing Energy Inc. due to down-hole mechanical problems in the fourth quarter of 2006. It also includes an interest in other development locations that have been identified but not yet drilled. The company is in the process of reviewing a work over plan for the shut-in well as well as plans for drilling an additional well.

As consideration for the assets of Countess LP, the Company will issue 1,500,000 Units at $0.30 per Unit, each Unit comprised of one Common Share and one Warrant. Each Warrant entitles the holder to purchase an additional Common Share at a price of $0.40 per Common Share, for a period of two years from closing.

In other news the company has been granted an operating license by the Alberta Energy and Utilities Board.

Magnum Energy Inc.

Magnum Energy Inc. is a junior oil and gas exploration company operating in the Western Canadian Sedimentary Basin. The company is headed by Ted Konyi, CEO, who has had extensive experience in the financing of oil and gas projects in Western Canada. The company has established an initial core area in South Eastern Alberta which it believes will produce significant cash flow for the company upon completion of a comprehensive drilling program.

The TSX Venture Exchange has neither approved or disapproved the contents of this press release.

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