Magnum Energy Inc.: Sedalia Operations Update
March 03 2010 - 9:30AM
Marketwired
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.
The TSX Venture Exchange has neither approved nor disapproved
the contents of this press release.
Contacts: Magnum Energy Inc. Richard Nemeth President & CEO
604.669.3155 604.669.3177 (FAX) rnemeth@magnumenergyinc.com
www.magnumenergyinc.com