MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

February 18, 2009 12:37 ET

MGM Energy Corp. Announces Results of North Ellice J-17 Well and Second Test of Ellice J-27 Well

CALGARY, ALBERTA--(Marketwire - Feb. 18, 2009) -

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MGM Energy Corp. ("MGM Energy") (TSX:MGX) announced today the results of its North Ellice J-17 well drilled in the western Mackenzie Delta.

The well at North Ellice J-17 encountered poor quality reservoir sections within the Taglu and no hydrocarbons were present. The drilling rig will now move to the third and final well in this year's drilling program, Ellice A-25. Ellice A-25 will test a prospect on the Ellice Island anticline.

MGM Energy also announced the results of the second test on the previously announced Ellice J-27 discovery. This zone has a net pay of 9 meters with an average porosity of 22% and an average water saturation of 33% using a 10% porosity cutoff. The zone tested is located in the Taglu formation from 1369 to 1373 meters (measured depth). The zone flowed at a maximum rate of 632 e3m3/d (22.4 mmcf/d) through a 44.5 mm (1.75 inches) choke, a flowing tubing pressure of 8,215 kPa and a calculated drawdown of 16% and a skin of 21. As with the first test of the Ellice J-27 well, the flow rates were restricted. The calculated AOF of the zone with sand face skin only is 2,275 e3m3/day (81 mmcf/d).

MGM Energy also announced further information on the first test of the Ellice J-27 discovery. As previously announced, the zone flowed at a maximum rate of 1,083 e3m3/d (38.2 mmcf/d) through a 38.1 mm (1.5 inches) choke. The test had a calculated drawdown of 7.5% and a skin of 52, with a calculated AOF with sand face skin only of 314 mmcf/d (8,860 e3m3/d).

"While we are disappointed that our second well of the year, J-17, did not encounter natural gas, we continue to be very pleased with the results from the Ellice J-27 well, which continues to exceed our original expectations" said Henry Sykes, President of MGM Energy. "We now look forward to spudding our third and last well of this winter's drilling season, expected to occur by the end of February."

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 exploration and drilling plans and the timing thereof, and future plans and operations. 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 press release 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
    or
    MGM Energy Corp.
    Rick Miller
    Chief Financial Officer
    (403) 781-7800