Magnum Energy Sells Viking Light Oil Asset To Artisan For $5.6 Million

To buy 50% WI in 2,720 gross acres in the Provost area of Alberta with current production of 80 gross BOE/d.

Magnum Energy Inc. (TSXV: MEN) will sell its 50% working interest in the Provost area of Alberta to Artisan Energy Corp. (TSXV: AEC) for $5.6 million, the Calgary-based companies announced Dec. 30.

Artisan signed a purchase and sale agreement to acquire 50% working interest in 2,720 gross acres (1,360 net acres) of land in the Provost area, which Magnum currently operates. Current production from the Provost asset is 80 gross barrels of oil equivalent per day (BOE/d) comprised of 90% light oil producing from the Viking zone. Artisan estimates that the Provost asset has an additional 17 gross (8.5 net) horizontal development Viking light oil drill locations based on a minimum well density of four additional horizontal wells per section.

Artisan's acquisition of the Provost Asset is conditional on Artisan completing a minimum financing of $5 million. Closing of the acquisition of the Provost asset is anticipated to occur on or before Feb. 14.