2009-08-11-2007-12-01-2007-12-01

Farm-in to drill exploratory test well for 45% WI.

Magnum Energy Inc., Vancouver, (Toronto Venture: MEN) plans to enter a farm-in agreement with an undisclosed privately held Calgary-based company to drill an exploratory test well targeting a new oil pool expected to contain sweet light crude. Magnum will own a 45% working interest subject to the farmor's election at the equipping point. The farmor retains a one-time election to convert its royalty interest in the farm-out lands to a 30% working interest, in which Magnum's working interest would be 31.5% net. Magnum is also preparing for a 100%-working-interest re-entry of a potential gas well in Sedalia.