MGM Energy Corp.
TSX : MGX
TSX : MGX.WT.B

MGM Energy Corp.

March 28, 2007 18:01 ET

MGM Energy Announced Today the Results of Its Well Drilled at Unipkat M-45 in the Mackenzie Delta

CALGARY, ALBERTA--(CCNMatthews - March 28, 2007) - Upon evaluation, the Unipkat M-45 well does not appear to contain hydrocarbons. As a result, MGM Energy (TSX:MGX) (TSX:MGX.WT.B) has elected to abandon the well without further testing.

Henry Sykes, President of MGM Energy, said "Clearly, we're disappointed in the results of this year's drilling program. We will re-evaluate the seismic data used by MGM energy and our partners to identify the locations of these wells in light of the results. While these results demonstrate the risk inherent in exploration activities, we continue to believe that our drilling program will meet expectations overall."

The Unipkat M-45 well was drilled pursuant to MGM Energy's farm-in with Chevron Canada Limited and BP Canada Energy Company, and was operated by Chevron. It was the second well of an eleven well drilling commitment. MGM Energy anticipates drilling at least three wells in the Mackenzie Delta in the winter of 2007/08, and will conduct seismic programs both in the Mackenzie Delta and in the central Mackenzie Valley at the same time.

MGM Energy is a Canadian oil and natural gas exploration company with interests in the Mackenzie Delta and the central Mackenzie Valley in the Northwest Territories. MGM Energy's common shares and common share purchase warrants are listed on The Toronto Stock Exchange under the symbols "MGX" and "MGX.WT.B", respectively.

Certain statements included in this document constitute forward-looking statements under applicable securities legislation. 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.
    Henry W. Sykes
    President
    (403) 290-3600
    (403) 262-7994 (FAX)
    or
    MGM Energy Corp.
    B.K. (Bernie) Lee
    Chief Financial Officer
    (403) 290-3600
    (403) 262-7994 (FAX)
    or
    MGM Energy Corp.
    4700 Bankers Hall West
    888 3rd Street S.W.
    Calgary, AB T2P 5C5