Magnum Energy Viking Oil Development Update
13 October 2011 - 12:39AM
Marketwired
Magnum Energy Inc. (The "Company" or "Magnum") (TSX VENTURE:MEN) is
pleased to announce that the first well at the Provost Viking Oil
Project has been successfully drilled and completed with a
horizontal leg of 1200 meters. The well was fracture stimulated in
13 stages.
Upon completion of stimulation, the well was equipped with
pumping equipment for production testing purposes. Peak rate during
this testing was 156 BOEPD (119 bbls/day oil, and 220 mcf/d gas).
The well was production tested for a total of 278 hours over 16
days. Total production over this period was 363.5 BBLs of oil and
248 BOE of gas. On Oct 3, 2011, a decision was made to commence
construction of a gas pipeline to facilitate production.
Currently, Magnum and its joint venture partner are applying for
necessary approvals to complete this pipeline. In addition,
Magnum's technical team is reviewing optimization programs to
increase production levels from the first horizontal well prior to
completion of the gas pipeline.
Magnum entered into a joint venture agreement in February, 2011
to acquire and develop certain Viking oil assets. This agreement
calls for its joint venture partner to drill, complete and tie-in
two horizontal wells to earn a 50% interest in 3.25 sections of
land described within the joint venture agreement. Subsequent to
this agreement, additional lands were secured for potential Viking
oil exploration and development.
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.
Petroleum and natural gas volumes are converted to an equivalent
measurement basis referred to as a "barrel of oil equivalent" (boe)
on the basis of 6 thousand cubic feet of natural gas equaling 1
barrel of oil. This is based on an energy equivalency conversion
method applicable at the burner tip and does not necessarily
represent a value equivalency at the wellhead. Readers are
cautioned that boe figures may be misleading, particularly if used
in isolation.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Magnum Energy Inc. Richard Nemeth President and CEO
604 669 3155rnemeth@magnumenergyinc.comwww.magnumenergyinc.com
Boardmarker Group 403 517 2270dean@boardmarker.net
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