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MGM Energy Corp. Announces 2013 Financial Results and Provides Update on Independent Committee

MGM Energy Corp. Announces 2013 Financial Results and Provides Update on 
Independent Committee 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: MGM Energy Corp. 
TSX SYMBOL:  MGX 
MARCH 12, 2014 
MGM Energy Corp. Announces 2013 Financial Results and Provides Update on
Independent Committee 
CALGARY, ALBERTA--(Marketwired - March 12, 2014) - MGM Energy Corp. ("MGM
Energy" or the "Company") (TSX:MGX) announced today its
financial results for the year ended December 31, 2013. 
The Company reported a net loss for the year ended December 31, 2013 of $8.3
million ($0.02 per share) as compared to a net loss of $8.1 million ($0.03 per
share) for the year ended December 31, 2012. MGM Energy's full audited
financial statements and accompanying Management's Discussion and Analysis
will be filed shortly on the SEDAR website (www.sedar.com).  
Further to its March 11, 2014 press release, MGM Energy also announced that a
special committee of the independent members of the board of directors of the
Company (the "Committee") has been established to consider the
proposal (the "Proposal") received from Paramount Resources Ltd.
("Paramount"), as described in that press release. The Committee is
comprised of all four independent members of the board of directors. The
Committee has retained independent legal counsel to advise the Committee and is
pursuing an engagement with an independent advisor to prepare an independent
valuation in accordance with MI 61-101. It is anticipated that the work of the
Committee will take place over the ensuing weeks. The Committee has requested
that management update the data room that was available during its search for a
partner in the Canol shale oil play, and to make that data room available to
any party interested in pursuing an alternative transaction. 
Given the consideration of the Proposal, the Company has decided to postpone
its annual meeting currently scheduled for April 23, 2014 to a date to be
determined.  
Shareholders will be advised if and at such time that a binding arrangement
agreement is reached between MGM Energy and Paramount. There can be no
assurance that any binding agreement will be reached or that a transaction will
be pursued or recommended by the board of directors of the Company.  
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".  
This document contains "forward-looking statements" regarding
Paramount's Proposal and the establishment of the Committee including
statements regarding the Proposal and terms and conditions thereof. Readers are
cautioned not to place undue reliance on forward-looking statements. Actual
results and developments may differ materially from those contemplated by these
statements depending on, among other things, the risk that the parties will not
proceed with the transaction, that the terms of the transaction will vary
materially from those proposed, and that the conditions precedent to proceeding
with the transaction may not be met on a timely basis or at all, including
negotiation and execution of definitive documentation. The forward-looking
statements contained herein are made at the date of this document and the
Company does not undertake any obligation to update publicly or revise any of
the forward-looking statements contained in this document, whether as a result
of new information, future event or otherwise, except as required by applicable
securities laws. 
/T/ 
MGM Energy Corp.                                                            
Balance Sheets                                                              
($000s)                                                                      
As at December 31                                         2013         2012 
---------------------------------------------------------------------------- 
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                        $     9,783  $    19,896 
  Accounts receivable and other current assets           1,484          552 
---------------------------------------------------------------------------- 
11,267       20,421 
Non-current assets                                                          
  Exploration and evaluation assets                     65,059       63,971 
  Property and equipment, net                                -          136 
---------------------------------------------------------------------------- 
65,059       64,107  
----------------------------------------------------------------------------
Total Assets                                       $    76,326  $    84,528 
---------------------------------------------------------------------------- 
LIABILITIES                                                                 
Current liabilities                                                         
  Accounts payable and accrued liabilities         $     2,479  $     5,352 
  Due to related parties                                    41           93 
---------------------------------------------------------------------------- 
2,520        5,445  
Non-current liabilities                                                     
  Asset retirement obligations                           5,147        4,018 
  Environmental restoration liability                      833            - 
---------------------------------------------------------------------------- 
5,980        4,018  
----------------------------------------------------------------------------
Total Liabilities                                        8,500        9,463 
---------------------------------------------------------------------------- 
SHAREHOLDERS' EQUITY                                                        
  Share capital                                        466,159      466,132 
  Contributed surplus                                   10,281        9,201 
  Deficit                                             (408,614)    (400,268)
----------------------------------------------------------------------------
Total Shareholders' Equity                              67,826       75,065 
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity         $    76,326  $    84,528 
---------------------------------------------------------------------------- 
MGM Energy Corp.                                                            
Statements of Loss and Comprehensive Loss                                   
($000s, except as noted)                                                     
Years Ended December 31                                   2013         2012 
---------------------------------------------------------------------------- 
Rental income                                      $       531  $         - 
---------------------------------------------------------------------------- 
531            - 
Expenses                                                                    
  General and administrative                             3,405        3,393 
  Share-based compensation                               1,061          548 
  Exploration and evaluation                             4,050        3,405 
  Accretion of asset retirement obligation                  44           41 
  Depreciation                                              15           93 
---------------------------------------------------------------------------- 
8,575        7,480 
----------------------------------------------------------------------------
Loss before net finance expense                         (8,044)      (7,480)
---------------------------------------------------------------------------- 
Finance income                                          (119)         (78)
  Finance expense                                          421          672 
----------------------------------------------------------------------------
Net finance expense                                        302          594 
---------------------------------------------------------------------------- 
----------------------------------------------------------------------------
Net loss and comprehensive loss                    $    (8,346) $    (8,074)
---------------------------------------------------------------------------- 
Net loss per common share ($/share)                                         
  Basic                                            $     (0.02) $     (0.03)
  Diluted                                          $     (0.02) $     (0.03) 
MGM Energy Corp.                                                            
Statements of Cash Flows                                                    
($000s)                                                                     
Years Ended December 31                                   2013         2012 
---------------------------------------------------------------------------- 
Operating activities                                                        
Net loss                                           $    (8,346) $    (8,074)
Adjustments to add (deduct) non-cash items                                  
  Stock-based compensation                               1,061          548 
  Non-cash general and administrative expense              (11)          61 
  Accretion of asset retirement obligations                 44           41 
  Depreciation                                              15           93 
Change in non-current environmental restoration                             
 provision                                                 833            - 
Change in non-cash working capital                         105          (68)
----------------------------------------------------------------------------
Cash flows used in operating activities                 (6,299)      (7,399)
---------------------------------------------------------------------------- 
Financing activities                                                        
Cash payment for options exercised                         (20)           - 
Common shares issued, net of issuance costs                 27       11,667 
----------------------------------------------------------------------------
Cash flows from (used in) financing activities               7       11,667 
---------------------------------------------------------------------------- 
Investing activities                                                        
Capital expenditures                                       168         (109)
Change in non-cash working capital                      (3,962)       3,646 
----------------------------------------------------------------------------
Cash flows from investing activities                    (3,794)       3,537 
---------------------------------------------------------------------------- 
Increase (decrease) in cash and cash equivalents       (10,086)       7,805 
Cash and cash equivalents, beginning of year            19,869       12,064 
----------------------------------------------------------------------------
Cash and cash equivalents, end of year             $     9,783  $    19,869 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
MGM Energy Corp.
H.W. (Henry) Sykes
President
(403) 781-7800
(403) 781-7801
or
MGM Energy Corp.
R. N. (Rick) Miller
Chief Financial Officer
(403) 781-7800
(403) 781-7801 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- Mar/13/2014 00:00 GMT
 
 
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