Magnum Energy Inc. (the "Company") (TSX VENTURE:MEN) is pleased to report that
operations at the previously announced 100% working interest Sedalia well
re-entry have been concluded. Upon re-entry and re-completion of the target
zone, a flow test was performed which indicated an initial flow rate of one
million cubic feet a day.


The well has now been shut in and the Company is preparing to equip and tie-in
the well for production. The Company anticipates being able to re-activate the
currently abandoned pipeline to the well and therefore expects production to
commence within the next month.


The Company is in the process of preparing the necessary surface and regulatory
applications to re-enter a second well location on an adjacent 100% working
interest section.