Magnum Energy Inc.

Magnum Energy Inc.

October 24, 2007 15:15 ET

Magnum Farm-In and Re-Entry Plans

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2007) - Magnum Energy Inc. (the "Company") (TSX VENTURE:MEN) is pleased to announce an agreement to participate in the drilling of an exploratory Cardium farm-in test well with a Calgary based private oil and gas company. The well is targeting a potential new oil pool anticipated to contain sweet light crude.

Magnum is participating by way of a 45% working interest subject to the Farmor's election at the equipping point. The Farmor retains a one -time election to convert its royalty interest in the Farmout Lands to a 30% working interest. In such an event, Magnum's working interest would be converted to a 31.5 net working interest. Lease construction is currently underway, and the well is expected to spud within the next two weeks. Drilling to the target zone will take approximately 8 days.

The Company is also in the final stages of preparation of the re-entry of a potential gas well at a 100% working interest in Sedalia. Pending the results of the re-entry, several potential follow up development drilling locations have been identified.

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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