MGM Energy Corp. Announces Completion of Partner Search Process, Potential Proposal to Acquire its Shares and Updated Assessment

MGM Energy Corp. Announces Completion of Partner Search Process, Potential 
Proposal to Acquire its Shares and Updated Assessment of Canol Shale Oil Play 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: MGM Energy Corp. 
TSX SYMBOL:  MGX 
FEBRUARY 27, 2014 
MGM Energy Corp. Announces Completion of Partner Search Process, Potential
Proposal to Acquire its Shares and Updated Assessment of Canol Shale Oil Play 
CALGARY, ALBERTA--(Marketwired - Feb. 27, 2014) - MGM Energy Corp. (TSX:MGX)
("MGM Energy" or the "Company") announces that it has
completed its formal search for a partner for its Canol shale oil lands. To
date, the Company has not been successful in obtaining a partner to assist in
the funding of further assessment of the Canol shale oil play and, as a result,
the Company will not be drilling any additional wells in the Canol shale oil
play in the upcoming winter of 2014/15.   
As a result of the Company's inability to obtain a partner to assist it in
funding its Canol shale play, the Company has had high level discussions with
management of Paramount Resources Ltd. ("Paramount"), which owns
13.9% of MGM Energy's shares, regarding Paramount acquiring the MGM Energy
shares not owned by it. Through such discussions, Paramount has indicated to
MGM Energy that it is investigating potentially making a proposal to acquire
all of the issued and outstanding shares of MGM Energy. However, there are no
assurances that any such proposal will be made by Paramount and, if made,
Paramount has indicated to MGM that such a proposal is currently expected to be
at or below the current trading price of MGM Energy's shares. In addition,
Paramount has indicated to the Company that it is supportive of MGM Energy
searching for other strategic alternatives and if Paramount were to make a
proposal, such proposal would also allow MGM Energy to search for strategic
alternatives for a period of time after any definitive agreement was entered
into regarding Paramount's acquisition of the Company's shares not
owned by it.  
The Company continues to have sufficient cash to fund its expected expenditures
through to at least mid 2015.   
MGM Energy also announces an update of its assessment of the shale oil
initially-in-place ("OIIP") within the Canol and Bluefish formations
on the Company's land holdings in the Central Mackenzie Valley, Northwest
Territories.   
The assessment is updated from the estimate provided in the 2012 Annual
Information Form dated March 25, 2013 and is based on analysis completed by the
Company from (i) the drilling, coring, logging, fracture stimulation and
testing of the East MacKay I-78 well drilled in 2013, (ii) additional well data
available to the Company, and (iii) further geological and geophysical work
completed on the Canol shale oil play. The updated assessment was completed
internally by Qualified Reserves Evaluators, and is as of December 31, 2013.
The table below summarizes the estimated OIIP on a 100% gross and
Company-interest basis. The estimates presented are in accordance with the
definitions and guidelines in the COGE Handbook and NI 51-101. 
/T/ 
Discovered Shale Oil Initially-In-Place -     
MMbbl(1)(3)                    
-------------------------------------------------- 
Company Gross(5)     
100% Gross(1)(4)         Mean Estimate(6)     
Exploration Licence            Mean Estimate(6)       As at Dec. 31, 2013   
----------------------------------------------------------------------------
EL466                               1,000                     625            
--------------------------------------------------
  Total Discovered OIIP             1,000                     625            
Undiscovered Shale Oil Initially-In-Place -    
MMbbl(2)(3)                    
-------------------------------------------------- 
Company Gross(5)     
100% Gross(2)(4)        Mean Estimate(6)     
Exploration Licence            Mean Estimate(6)       As at Dec. 31, 2013   
----------------------------------------------------------------------------
EL474                               3,100                    1,550          
EL475                               5,000                    2,500          
EL487                               3,000                     750            
--------------------------------------------------
  Total Undiscovered OIIP           11,100                   4,800           
Notes:                                                                      
(1) There is no certainty that it will be commercially viable to produce any 
portion of the resources.                                               
(2) There is no certainty that any portion of the resources will be          
discovered. If discovered, there is no certainty that it will be         
commercially viable to produce any portion of the resources.            
(3) "MMbbl" is millions of barrels at standard conditions.                  
(4) 100% Gross means OIIP without any adjustments for working interest,      
royalties or other encumbrances.                                        
(5) Company Gross means OIIP with adjustments for working interest, but not  
for royalties or other encumbrances.                                    
(6) The mean estimate is the mean volume of OIIP from the probabilistic      
assessment of oil that is in place.                                      
/T/ 
Discovered shale oil initially in place (equivalent to discovered resources)
are those quantities of petroleum estimated on a given date to be remaining in
known accumulations. Undiscovered shale oil initially in place (equivalent to
undiscovered resources) is that quantity of petroleum that is estimated, on a
given date, to be contained in accumulations yet to be discovered. It is not
possible at this time to determine an estimate of what portion of the OIIP is
recoverable and what portion is unrecoverable as additional drilling, seismic
and development engineering is required to determine an anticipated recovery
factor. A portion of the OIIP may become recoverable in the future as
commercial circumstances change or technological developments occur; the
remaining portion may never be recovered due to the physical/chemical
constraints represented by subsurface interaction of fluids and reservoir
rocks. Additional information regarding the risks associated with the Canol
shale oil play and the estimate of OIIP can be found in the Company's 2012
Annual Information Form dated March 23, 2013.   
MGM Energy is a Canadian oil and natural gas exploration and development
company active in Northern Canada. MGM Energy's common shares are listed
on the Toronto Stock Exchange under the symbol "MGX".  
Certain statements or information included in this press release constitute
forward-looking statements under applicable securities legislation, including
statements and information about a potential proposal from Paramount. Such
forward-looking statements or information are based on information known to
date and a number of assumptions which may prove to be incorrect. Although MGM
Energy believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed
on forward-looking statements because MGM Energy can give no assurance that
such expectations will prove to be correct. Forward-looking statements or
information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results to
differ materially from those anticipated by MGM Energy and described in the
forward-looking statements or information. The forward-looking statements or
information contained in this document are made as of the date hereof and MGM
Energy undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
MGM Energy Corp.
Henry Sykes
President
(403) 781-7800
(403) 781-7801
or
MGM Energy Corp.
Rick Miller
Chief Financial Officer
(403) 781-7800
(403) 781-7801 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  OEX 
-0-
-0- Feb/27/2014 22:00 GMT
 
 
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