CALGARY, ALBERTA--(Marketwire - July 4, 2012) - Magnum Energy Inc. (the "Corporation" or "Magnum") (TSX VENTURE:MEN) is pleased to announce the results of the second horizontal well drilled at the Provost Oil Project. The 50% owned well targeted the Viking formation at a depth of 800 meters with a 600 meter horizontal leg. Upon completion of a 10 stage fracture stimulation, the well flowed back on cleanup for 50 hours producing a total of 431 barrels of new oil and 543 barrels of frac water, recovering fifty percent of the frac fluids. Over the final 24 hours of the flow test, the well flowed at a rate of 210 barrels of oil per day with a 65% oil cut.
The well has been temporarily shut-in to allow its tie-in to the Corporation's Provost 4-7 oil battery. Production is expected to commence within the next week and will be operated by Magnum.
The Corporation has two additional horizontal well locations that will be drilled with its joint venture partner in the near future once funding is procured pursuant to an additional closing of its prospectus offering as announced in a press release dated June 20, 2012.
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.magnumenergy.com.
The information and statements in this news release contain certain forward-looking information relating to subsequent closings under the Prospectus. All statements other than statements of historical fact may be forward-looking information. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. These assumptions include market acceptance of the terms of the Offering. The outcome and timing of subsequent closings under the Offering could differ materially from those expressed in, or implied by, such forward-looking information, and accordingly, no assurances can be given that any subsequent closings or events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits the Corporation will derive from them. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.
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.