Magnus Energy Inc.

Magnus Energy Inc.

July 11, 2005 12:58 ET

Magnus Energy Completes Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - July 11, 2005) - Magnus Energy Inc. ("Magnus") is pleased to announce that it has successfully completed its initial public offering. The offering was fully subscribed with gross proceeds of $10,000,000 and an additional $913,000 on exercise of the over-allotment option. A total of 10,913 Units were subscribed for at a price of $1000 per Unit. First Associates Investments Inc. acted as lead agent for the offering. Each Unit consists of 500 flow-through Class A Shares at a price of $0.26 per share and 87 flow-through Class B Shares at a price of $10.00 per share. Following the financing, Magnus has 14,871,500 Class A Shares and 949,431 Class B Shares issued and outstanding. Closing documents for the initial public offering were filed today with the TSX Venture Exchange and it is expected that the shares of the company will commence trading on the TSX Venture Exchange on or before July 25, 2005.

President and CEO, Murray Stewart said: "Our early focus is on exploration on our Southeast Saskatchewan properties where we plan to drill up to 12 Bakken, Midale and Torquay wells over the next 6 months. We are expanding our land base in Southeast Saskatchewan and Alberta through freehold land acquisitions and farm-ins and are supplementing these activities with crown postings and the pursuit of strategic asset and corporate acquisitions." Magnus Chairman and co-founder, Owen C. Pinnell added: "The board of Magnus is obviously delighted with the response to this offering and excited about the planned exploration program and the parallel pursuit of strategic asset and corporate acquisitions."

Magnus' team includes Murray M. Stewart, President and CEO, Robert G. Dittmer, CFO, Paul J. Poscente, Vice President Exploration, Shona J. Gillis, Vice President Land, and Ross O. Drysdale, Corporate Secretary and Director. The directors of Magnus include Owen C. Pinnell, J. Ronald Woods, Michael R. Binnion, Jed M. Wood and Murray M. Stewart.

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.

14,871,500 Class A Shares

949,431 Class B Shares

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.

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) 215-2426
    (403) 261-6601 (FAX)
    Magnus Energy Inc.
    Suite 1420, 1122 - 4th Street S.W.
    Calgary, Alberta T2R 1M1