MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

December 10, 2007 09:00 ET

MGM Energy Corp. Announces Issuance of Umiak SDL

CALGARY, ALBERTA--(Marketwire - Dec. 10, 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 received from Indian and Northern Affairs Canada the Significant Discovery License (SDL) in respect of the Umiak field, located north west of Inuvik, NWT.

The Umiak SDL encompasses the lands within the area of Umiak N-05 and Umiak N-16, the two discovery wells drilled into the field to date. The National Energy Board previously issued Significant Discovery Declarations in respect of both of these wells on May 10, 2006 and July 26, 2007, respectively.

The Umiak SDL covers an area of 8,505 hectares (21,270 acres or 28 sections) and includes multiple pools of gas, oil and oil and gas within sandstone reservoirs of the middle Tertiary-aged Richards and Taglu formations. MGM Energy's internal estimates of the contingent resource size of the Umiak discovery is approximately 444 Bcf of natural gas, and additional volumes of oil in place. MGM Energy anticipates that a field of this size will average production of no less than 100 million cubic feet per day for more than 10 years.

MGM Energy is currently considering development scenarios for the Umiak field, with the intention of ensuring production will commence when the currently proposed Mackenzie Valley pipeline is placed into service.

MGM Energy is the operator of the Umiak field and holds a 60% working interest. ConocoPhillips Canada and its affiliates hold the remaining 40% interest.

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. 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.
    Henry W. 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)