Magnum Energy Announces Flow Test Results From Provost Horizontal Well

Magnum Energy Inc. (the "Corporation" or "Magnum") (TSX VENTURE:MEN) is pleased
to announce flow test results from its most recently completed horizontal well
in the Provost Viking light oil property in eastern Alberta. The well, in which
Magnum has a 50% working interest, was operated by the Corporation and drilled
with a 665 meter horizontal leg and completed with an eleven stage fracture
stimulation. The well test flowed at 230 barrels of oil per day over 5.4 days.
The testing was performed under a restricted basis using a 7.94 mm choke and
flowing tubing pressures of between 2000 to 3000 kPa. The well is currently shut
in for two days to perform standard pressure build up tests required by the
Energy Resources Conservation Board. Upon completion of the testing, the well
will be equipped and placed on production. 


The Corporation is in the process of licensing a fourth horizontal location in
the same section which will take approximately four weeks. Magnum anticipates
drilling operations to commence as soon as possible upon licensing. The
Corporation has identified seven offset drilling locations in this section and
plans to continue to focus on the Viking oil lands where no reserves have been
assigned to date.


Richard Nemeth, President and CEO, comments, "We are very pleased with the
results of the last two wells, especially this last well, that will add proven
producing reserves where the Corporation had zero net asset value in the last
reserve report". 


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.magnumenergyinc.com. 


Forward looking statements:

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond Magnum's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserves estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations, including
the adoption of new environmental laws and regulations, and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory bodies. Actual results could differ materially
from those expressed in or implied by these forward-looking statements. No
assurances can be given that any of the events anticipated by any
forward-looking statements will transpire or occur, or if any of them do so,
what benefits Magnum will derive therefrom. Readers are cautioned that the
foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to Magnum or persons acting on
behalf are expressly qualified in their entirety by these cautionary statements.
The forward-looking statements contained in this news release and the documents
referred to herein, are made as at the date of this news release, and Magnum
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.