Magnum Energy Announces Pipeline Construction at Provost Viking Oil Project

MAGNUM ENERGY INC. (the "Company") (TSX VENTURE:MEN) is pleased to announce that
construction of the pipeline at the Provost Viking Oil Project has commenced.
The pipeline will transport the solution natural gas produced from the first
horizontal oil well that was drilled, completed and tested as previously
announced on October 12, 2011. The 14-7 horizontal oil well and a multi-well
battery are also being prepared for tie-in which is anticipated to occur within
the next two weeks. Management anticipates that stabilized rates from the
horizontal oil well will be established during a period of up to 60 days. 


The Company has also commenced the preparations to re-enter two existing
vertical wellbores with Viking oil potential similar to its Provost 5-7 vertical
recompletion which resulted in stabilized production of approximately 20 gross
barrels (10 net barrels) of oil per day. 


About Magnum Energy Inc.

Magnum Energy is a junior oil and gas producer with operations located in the
Western Canadian Sedimentary Basin. The Company produces from Viking oil
operations in Alberta, gas operations in Alberta and maintains 100% ownership of
the Sedalia gas facility in East-Central Alberta. 


ON BEHALF OF THE COMPANY

Richard Nemeth, President & CEO

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.