CALGARY, ALBERTA -- (Marketwired) -- 04/25/13 -- MGM Energy Corp. (TSX: MGX) ("MGM Energy" or the "Company") announced today its financial results for the three months ended March 31, 2013.
The Company reported a net loss for the three months ended March 31, 2013 of $0.6 million ($0.00 per share) as compared to a net loss of $1.6 million ($0.01 per share) for the three months ended March 31, 2012. MGM Energy's full unaudited financial statements and accompanying Management's Discussion and Analysis will be filed shortly on the SEDAR website (www.sedar.com).
MGM Energy also provided an update on the analysis of the results of the East MacKay I-78 well recently drilled in the Canol shale oil play. The analysis of the fluid that flowed from the well is ongoing, but results to date indicate that the oil is light sweet crude oil, approximately 40 degrees API. The preliminary review of the logs confirms that they are consistent with the logs of the East MacKay I-77 well, located 1.5 km to the south and drilled in 2000 targeting deeper conventional targets. The initial review of the cores indicates that the reservoir rock has a high silica content, making it a good candidate for hydraulic fracturing. MGM Energy will be analyzing the core samples taken from the I-78 well and calibrating the results with the logs from the well to update the Company's estimate of original oil in place over MGM Energy's lands in the Canol shale oil play. It is expected that this work will be completed within the next six months. In addition to the analysis of the well results, the Company has completed an analysis of samples from the three groundwater monitoring wells drilled adjacent to the I-78 well which confirms that there was no contamination of the groundwater as a result of the drilling, fracturing and flowing operations.
"We continue to be very encouraged by the results of the East MacKay I-78 well" said Henry Sykes, President of MGM Energy. "The results of the well, including flow rates, certainly meet our expectations for a vertical well with small fracs and a limited testing period."
MGM Energy also announced the director election results from its 2013 annual meeting of shareholders held on April 25, 2013. The results of the director election are as follows:
DIRECTOR FOR WITHHELD----------------------------------------------------------------------------NomineesMichael N. Chernoff 191,149,820 282,127Daryl H. Gilbert 191,001,666 430,281Robert B. Hodgins 191,022,313 409,634Robert B. Peterson 191,031,657 400,290Clayton H. Riddell 190,999,319 432,628James H. T. Riddell 191,399,861 32,086Robert B. Rooney 191,053,316 378,631Henry W. Sykes 191,272,360 159,587
MGM Energy also announced that its shareholders approved a special resolution providing authority to effect a consolidation of the Company's shares on a 20:1 basis. The Board of Directors has determined that it will not proceed with the share consolidation at this time, although it retains the authority to do so up until the next Annual General Meeting.