MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

October 15, 2007 09:21 ET

MGM Energy Corp. Enters Into Mackenzie Gas Project Capacity Request Agreement

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.

MGM Energy Corp. (TSX:MGX) ("MGM Energy") announced today that it has entered into a Capacity Request Agreement with the owners of the Mackenzie Gathering System (MGS) portion of the Mackenzie Gas Project.

The Capacity Request Agreement provides MGM Energy with 200 MMcf/d of capacity on the MGS, which will feed into the proposed Mackenzie Valley pipeline. In addition, the Capacity Request Agreement gives MGM Energy the option to own its share of the MGS.

In recognition of the magnitude of the volume commitment, MGM Energy obtains, with the signing of the Capacity Request Agreement, observer status at meetings of the MGS Management Committee, allowing it to provide input regarding system design and other issues.

The 200 MMcf/d of capacity acquired by MGM Energy will be used to transport MGM Energy owned and certain partner natural gas from the Mackenzie Delta region to the proposed Mackenzie Valley pipeline.

"We're extremely pleased to have reached this agreement with the proponents of the Mackenzie Gas Project. This agreement enables the natural gas MGM Energy currently owns and for which it is exploring to be delivered to the Mackenzie Valley pipeline on start up, assuming the project proceeds. The execution of a Capacity Request Agreement by MGM Energy provides the project proponents, governments and others, tangible evidence that additional volumes of natural gas are committed to the Mackenzie Gas Project" said Henry Sykes, President of MGM Energy Corp.

MGM Energy is a Calgary-based Canadian oil and gas exploration and development company with operations in Northern Canada. MGM Energy's common shares are listed on Toronto Stock Exchange under the symbol "MGX".

Certain statements or information included in this press release constitute forward-looking statements under applicable securities legislation. Forward-looking statements or information in this press release include but are not limited to business strategy and objectives, exploration and drilling plans and the timing thereof, as well as the anticipated timing for seeking regulatory approvals. Such forward-looking statements or information are based on 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.

Contact Information

  • MGM Energy Corp.
    H. W. (Henry) Sykes
    President
    (403) 781-7800
    (403) 781-7801 (FAX)
    or
    MGM Energy Corp.
    Rick Miller
    Chief Financial Officer
    (403) 781-7800
    (403) 781-7801 (FAX)