looks like they are moving in the right direction.
During Q1-2013 Magnum successfully:
• Focused on increasing light oil production.
• Increased total production by 8% over Q1-2012.
• Drilled a third successful horizontal oil well at Provost.
• Incurred $1.3 million of capital expenditures on drilling and production handling facilities at Provost.
• Moved the production mix to 47% oil weighting in the quarter from 13% oil weighting for Q1-2012.
• Increased revenue per boe by 61% to $48.75 from $30.06 during Q1-2012
• Increased operating netback by 81% to $24.38 per boe from $13.47 per boe during Q1-2013.
Average production of 187 boed with a 47% oil weighting.
Oil and natural gas sales revenues have reached the highest levels in the Corporation’s history, reaching
$822,964 for the three months ended November 30, 2012, an increase of $455,460 or 224% over the previous quarter. This is primarily the increased oil production from the Provost area which has given Magnum a higher oil concentration and a corresponding increase in average product pricing received by the Corporation.
Oil revenues increased for both the three months and year ended August 31, 2012 over 2011 due to the
acquisition of the Viking oil producing property in Provost in March, 2011. Oil revenues are expected to further increase as a percentage of total revenues as the Corporation brings more production onstream from Provost.
The Corporation’s first horizontal well in the area was tied-in and placed on production in March, 2012 and two more were placed on production in July and September, 2012. Magnum anticipates that production from the wells and future additional horizontal wells will significantly increase future oil revenues.