Magnum Energy Inc.: Sedalia Operations Update

Magnum Energy Inc. (the "Company" or "Magnum") (TSX VENTURE:MEN) is pleased to
update the results of the operations announced in the December 18th news
release.


The Company's current daily sales are 2.75 mmcfe/day. With the benefit of flush
production rates the recent production has exceeded 3.0 mmcfe/day (500 boe/day)
and we anticipate sales will be sustained above 2.4 mmcfe/day (400 boe/day) in
the coming months prior to additional rate increases from pending operations.


This 129% increase in Sedalia daily sales rate is the result of the completion
of seven of nine planned winter operations. The new sales rate also represents a
227% increase from prior to the Sedalia acquisition. To date, Magnum has
re-completed five existing wells with fracture stimulations, re-entered one well
to test a new zone and drilled and completed one new multi-zone gas well. Two
existing wellbores remain to be fracture stimulated, tied in and placed on
production. Magnum anticipates completing its total winter program by early
April.


The Company's newly upgraded 100% owned compression facilities at Sedalia are
now operating at 40% of licensed capacity. Magnum is encouraged by the results
of the recent program and plans on drilling between 4 and 6 new wells this
summer with the objective of fully utilizing the remaining capacity at the
Sedalia facilities.


Disclaimer: Natural gas volumes have been converted to barrels of oil
equivalent. Barrels of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 thousand cubic feet ("mcf") = 1
barrel ("bbl") of oil is based on an energy equivalency conversion method
primarily applicable to the burner tip and does not represent a value
equivalency at the wellhead.