Magnus Energy Inc.

Magnus Energy Inc.

October 11, 2005 17:04 ET

Magnus Operational Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2005) - Magnus Energy Inc. (TSX VENTURE:MEI.A) (TSX VENTURE:MEI.B) ("Magnus") is pleased to announce that it has drilled and cased its first earning well in its capital program to develop the Bakken and the Midale potential on its land base in the Tableland Area of Southeast Saskatchewan. In addition, at the Crown Land Sale on October 4, 2005 Magnus acquired 2,560 gross acres of land adjacent to this well.

The total measured depth of this Bakken well was 2,685 metres with 519 metres in the horizontal section. This earning well was drilled at the sole expense of Magnus, and was operated by one of its partners, Waveform Energy Ltd. ("WaveForm"), on behalf of Magnus. Under the terms of the farmin arrangement, Magnus earns a 100% WI in the section containing the earning well until payout and 50% WI after payout, subject to a convertible GOR reserved unto the farmors, together with a 50% WI in the balance of a three section earning block. Magnus also has the opportunity to drill additional earning wells on a rolling option basis to earn on the same terms in the balance of the farmin lands.

The completion of this horizontal Bakken well is currently being finalized and Magnus expects to commence operations next week. Magnus is actively evaluating the completion techniques to be used on this well, and with WaveForm, have been researching drilling and completion techniques used by operators in the United States and Canada within close proximity to the Tableland area. Recent wells drilled in the northern part of North Dakota have had initial production rates of 250 to 350 bbls/d of light oil as companies begin to refine their drilling and completion techniques.

Murray Stewart, the President & CEO of Magnus states, "I am excited by our
progress to date on our first well in Tableland, in particular the data we have gained thus far to prove-up the area's multi-zone potential. Magnus is also planning its next follow-up earning well."

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
    (403) 262-9920 (FAX)
    Magnus Energy Inc.
    Suite 1650, AMEC Place
    801 - 6th Avenue S.W.
    Calgary, Alberta T2P 3W2