Magnum Begins Oil Production at Cardium

Magnum Energy Inc. reported that the previously announced Cardium exploratory well has now been placed on production. The operator has informed Magnum that free flowing flush production exceeded initial flow test rates reported in news release on December 20, 2007. Production on the well will be restricted as required by regulations until such time that the operator receives Good Production Practices (GPP) approval from the EUB, which usually takes about 30 days. All facilities are in place for full production rates once the approval is received.