MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

March 23, 2009 16:17 ET

MGM Energy Corp. Announces Results of Ellice A-25 Well

CALGARY, ALBERTA--(Marketwire - March 23, 2009) -

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MGM Energy Corp. ("MGM Energy") (TSX:MGX) announced today the results of its Ellice A-25 well drilled in the western Mackenzie Delta.

The well at Ellice A-25 encountered natural gas in the Aklak formation, however upon review of log data the well does not appear to contain commercial quantities of hydrocarbons and will be abandoned.

MGM Energy has now successfully completed its planned three-well drilling program this winter and, as a result, owns 41% of the Chevron/BP Farm-in lands and the discoveries at Langley E-07 and Ellice J-27. Under the terms of the Farm-in, MGM Energy can increase that ownership level from 41% to 50% by drilling an additional three wells in the 2009/10 winter drilling season.

"We are disappointed that Ellice A-25 did not encounter commercial quantities of natural gas. However, in light of our success at Ellice J-27 and our work indicating that the amount of resource discovered in that well exceeded our expectations for this year's entire drilling program, we view the overall drilling program this winter as a tremendous success" said Henry Sykes, President of MGM Energy. "We expect to release details of our resource estimate of the Ellice J-27 well shortly".

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