Magnus Energy Inc.

Magnus Energy Inc.

October 13, 2005 18:53 ET

Magnus Acquires Significant Land Position

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2005) - Magnus Energy Inc. (TSX VENTURE:MEI.A) (TSX VENTURE:MEI.B) ("Magnus") is pleased to report it has acquired a significant land position in one of its core properties, the Antler Area, in Southeast Saskatchewan.

Magnus has acquired 33.88 gross sections (21,683 acres) of land in its core Antler area. Magnus is the operator of the Antler area in a joint venture where it has a 50% working interest.

Antler is a conventional prospect which has strong production potential based on initial geological interpretation and offset wells. The Antler Area is prospective for light oil in several zones ranging from the Devonian aged Birdbear and Torquay formations up to the Mississippian aged Bakken, Lodgepole, and Tilston formations. Magnus has conducted geological mapping based on recent industry activity, as well as numerous existing wells, to locate an exploration fairway which may be prospective. The initial wells will be targeting the Torquay and Bakken formations which range from 900 to 1,300 metres deep. Initial production rates are expected to be similar to the nearby Sinclair and Daly fields in Manitoba, which range from 40 to 80 bbls/d of light sweet oil. The area has good access to infrastructure, and will have costs per well of approximately $200,000 to drill and case, and $150,000 to complete and equip.

Murray M. Stewart, the President & CEO of Magnus, remarked, "I am confident this additional land, nearly a township in size, will provide significant future value to our shareholders. Antler is one of four core areas in which Magnus operates; the others being Tableland which is also in Southeast Saskatchewan, and our East Central Alberta core areas of North Esther and Paradise Valley. In comparison to Tableland, the Antler wells are shallower and can be drilled vertically at a much lower cost. As a result, this is a more conventional and lower risk project which gives good capital and risk balance to our overall portfolio."

About Magnus Energy

Magnus Energy is a junior oil and gas company focused on the acquisition, exploration, exploitation and development of oil and natural gas in Western Canada.

ADVISORY: Certain information regarding Magnus Energy Inc. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

15,415,000 Class A Shares
1,044,000 Class B Shares

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Magnus Energy Inc.
    Murray M. Stewart
    President and Chief Executive Officer
    (403) 233-4963
    Magnus Energy Inc.
    Stewart Larsen
    Chief Financial Officer
    (403) 233-4960
    (403) 262-9920 (FAX)
    Magnus Energy Inc.
    Suite 1650, AMEC Place
    801 - 6th Avenue S.W.
    Calgary, Alberta T2P 3W2