MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

June 13, 2008 16:48 ET

Gwich'in Tribal Council and MGM Energy Corp. Sign MOU for Exploration Rights

CALGARY, ALBERTA AND INUVIK, NORTHWEST TERRITORIES--(Marketwire - June 13, 2008) -

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Fred Carmichael, President of the Gwich'in Tribal Council and Henry Sykes, President of MGM Energy Corp. (TSX:MGX) ("MGM Energy") announced that they recently entered into a Memorandum of Understanding ("MOU") to allow MGM Energy to evaluate the resource potential underlying Gwich'in lands. This MOU is the first step in a commercial relationship between the Gwich'in and MGM Energy. The MOU contemplates further agreements being negotiated which will be undertaken in the upcoming weeks.

The Gwich'in have agreed to make five parcels of their private lands available to MGM Energy for geological and geophysical work. If that work demonstrates that the lands are prospective, then it is expected that seismic work will be conducted and ultimately wells will be drilled to prove up the resource.

Fred Carmichael stated "This is a true partnership; MGM Energy and the Gwich'in are committed to work together. It is expected that this work will create job opportunities for appropriately qualified Gwich'in or those who wish to be qualified". Henry Sykes stated that "MGM Energy looks forward to increasing its knowledge of and ability to work with the Gwich'in as a result of this joint venture".

The Gwich'in do not give up or reduce any of their rights under the Gwich'in Comprehensive Land Claims Agreement. MGM Energy must negotiate benefits and access agreements and the Gwich'in will be entitled to royalties on any hydrocarbons produced from lands which they own.

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

  • Gwich'in Tribal Council
    Tom R. Williams
    Chief Operating Officer
    (867) 777-7903
    (867) 777-7919 (FAX)
    or
    Gwich'in Tribal Council
    Chief Jim Koe Zheh
    P.O. Box 1509
    Inuvik, NT X0E 0T0
    or
    MGM Energy Corp.
    John Hogg
    Vice President, Exploration
    (403) 781-7800
    (403) 781-7801 (FAX)
    or
    MGM Energy Corp.
    4100, 350 7th Avenue SW
    Calgary, AB T2P 3N9