Magnum Energy Inc.
TSX VENTURE : MEN

Magnum Energy Inc.

December 12, 2007 09:30 ET

Magnum Energy Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 12, 2007) - Magnum Energy Inc. ("the Company") (TSX VENTURE:MEN) is pleased to announce it has arranged a non-brokered private placement of up to 4,000,000 flow-through units at a price of $0.50 per unit for total proceeds of $2,000,000.

Each flow-through unit comprises one flow-through common share and one share purchase warrant entitling the holder to purchase an additional non-flow through common share for $0.75 for a period of one year.

The proceeds of the offering may be used to advance the development of properties in which the company holds interests as follows;

1) Potential drilling targets developed in the Vauxhaull area;

2) The drilling of additional wells in the Sedalia area;

3) Any additional drilling opportunities in the Taber area, where the company has developed a shallow gas prospect with eight producing wells.

In addition to the Company's opportunities as set out above, the Company is currently in negotiations with a private Calgary based oil and gas company with respect to a project which will include the recompletion of deep well containing both oil and natural gas zones. The project would also include a 3d seismic program, and a commitment to drill a second well, subject to an appropriate target horizon being identified by the seismic program.

The Company is also undertaking preliminary due diligence on a separate shallow gas prospect in Southern Alberta.

The proceeds from this financing may be used to undertake exploration and development of these opportunities, subject to conclusion of negotiations satisfactory to the board of directors.

A finder's fee of 8% will be paid in cash on private placement units sold to non-insiders.

Closing of this private placement is subject to acceptance for filing by the TSX Venture Exchange.

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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