Magnum Energy report that construction of the pipeline at the Provost Viking Oil Project has commenced.

The pipeline will transport the solution natural gas produced from the first horizontal oil well that was drilled, completed and tested as previously announced on October 12, 2011. The 14-7 horizontal oil well and a multi-well battery are also being prepared for tie-in which is anticipated to occur within the next two weeks. Management anticipates that stabilized rates from the horizontal oil well will be established during a period of up to 60 days.

The Company has also commenced the preparations to re-enter two existing vertical wellbores with Viking oil potential similar to its Provost 5-7 vertical recompletion which resulted in stabilized production of approximately 20 gross barrels (10 net barrels) of oil per day.

Tags: Magnum Energy Inc.