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

MGM Energy Corp.

April 30, 2007 19:45 ET

MGM Energy Corp. Financial and Operating Results for the Three Months Ended March 31, 2007

CALGARY, ALBERTA--(CCNMatthews - April 30, 2007) - MGM Energy Corp. (TSX:MGX) (TSX:MGX.WT.B) ("MGM Energy" or the "Company") announced today its financial and operating results for the three months ended March 31, 2007.

The Company reported a net loss for the three months ended March 31, 2007 of $27 million ($1.57 per share), principally as a result of dry hole expense resulting from the two previously announced dry holes at Kumak I-25 and Unipkat M-45 in the Mackenzie Delta. MGM Energy has adopted the successful efforts method of accounting for its oil and gas operations, and accordingly the cost of dry holes are written off in the period in which the results became known.

"While this year's drilling program produced disappointing results," said Henry Sykes, President, "we remain committed to our business plan. We intend to continue to explore for and acquire energy resources in the Northwest Territories and are actively planning our drilling program for the winter of 2007/08. We expect to make required regulatory filings by the end of the second quarter of this year to allow us to drill three wells in the Mackenzie Delta, as well as to shoot additional 2 - and 3-D seismic in both the Mackenzie Delta and the Colville Lake area.

MGM Energy's full financial statements and accompanying Management's Discussion and Analysis will be available on the Company's website (www.mgmenergy.com) and the SEDAR website (www.sedar.com).

MGM Energy is a Canadian oil and natural gas exploration, development and production company with operations focused in Northern Canada. MGM Energy's common shares and warrants are listed on the Toronto Stock Exchange under the symbols "MGX" and "MGX.WT.B", respectively.

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.



MGM Energy Corp.
Balance Sheets (Unaudited)
($ thousands)

For periods prior to January 12, 2007, the financial statements, including
the results of operations and cash flows, have been prepared on a carve-out
basis from Paramount Resources Ltd. readers are referred to MGM Energy's
Unaudited Interim Financial Statements as at and for the three months ended
March 31, 2007. These financial statements may not be indicative of the
results that would have been attained if MGM Energy Corp. had operated as a
stand-alone entity for these periods.

As at As at
March 31 December 31
2007 2006
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ASSETS
Current assets
Cash and cash equivalents $ 63,081 $ -
Accounts receivable 475 1,360
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63,556 1,360


Property, plant and equipment 66,619 70,268
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$ 130,175 $ 71,628
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 27,642 $ 6,774
Due to Paramount Resources Ltd. 921 -
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28,563 6,774
Asset retirement obligations 948 439
Future income taxes 2,367 3,895
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31,878 11,108
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Contingencies and Commitments

Shareholders' Equity
Share capital 123,762 -
Contributed surplus 528 -
Net investment by Paramount Resources Ltd. - 60,520
Deficit (25,993) -
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98,297 60,520
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$ 130,175 $ 71,628
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MGM Energy Corp.
Statements of Loss (Unaudited)
($ thousands, except as noted)

For periods prior to January 12, 2007, the financial statements, including
the results of operations and cash flows, have been prepared on a carve-out
basis from Paramount Resources Ltd. readers are referred to MGM Energy's
Unaudited Interim Financial Statements as at and for the three months ended
March 31, 2007. These financial statements may not be indicative of the
results that would have been attained if MGM Energy Corp. had operated as a
stand-alone entity for these periods.

Three Months Ended March 31
2007 2006
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Revenue
Interest income $ 253 $ -
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253 -
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Expenses
Operating 4 12
General and administrative 1,443 69
Stock-based compensation 782 146
Exploration 432 62
Dry hole 36,397 -
Interest 20 -
Accretion of asset retirement obligations 25 7
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39,103 296
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Loss before tax (38,850) (296)
Future income tax expense (recovery) (11,507) 1
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Net loss and other comprehensive loss $ (27,343) $(297)
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Net loss per Common Share ($/share)
Basic (1.57) (0.02)
Diluted (1.57) (0.02)

Weighted average Common Shares outstanding (thousands)
Basic 17,393 17,393
Diluted 17,393 17,393


Statements of Deficit (Unaudited)
($ thousands)

Three Months Ended March 31
2007 2006
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Deficit, beginning of year $ - $ -
Net loss (27,343) (297)
Loss allocated to net investment by Paramount
Resources Ltd. 1,350 297
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Deficit, end of period $ (25,993) $ -
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MGM Energy Corp.
Statements of Cash Flows (Unaudited)
($ thousands)

For periods prior to January 12, 2007, the financial statements, including
the results of operations and cash flows, have been prepared on a carve-out
basis from Paramount Resources Ltd. readers are referred to MGM Energy's
Unaudited Interim Financial Statements as at and for the three months ended
March 31, 2007. These financial statements may not be indicative of the
results that would have been attained if MGM Energy Corp. had operated as a
stand-alone entity for these periods.

Three Months Ended March 31
2007 2006
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Operating activities
Net loss and other comprehensive loss $ (27,343) $ (297)
Add (deduct):
Stock-based compensation 782 38
Exploration 432 62
Dry hole 36,397 -
Accretion of asset retirement obligations 25 7
Asset retirement obligation expenditures (400) -
Future income tax (recovery) expense (11,507) 1
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Funds flow from operations (1,614) (189)
Change in non-cash working capital 639 (236)
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(975) (425)
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Financing activities
Repayment of note (12,000) -
Proceeds on settlement of note 163 -
Common shares issued, net of issuance costs 78,545 -
Net investment by Paramount Resources Ltd. 3,195 1,214
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69,903 1,214
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Investing activities
Additions to property, plant and equipment (32,296) 327
Reorganization costs (1,000) -
Change in non-cash working capital 27,449 (1,116)
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(5,847) (789)
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Increase in cash and cash equivalents 63,081 -
Cash and cash equivalents, beginning of period - -
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Cash and cash equivalents, end of period $ 63,081 $ -
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Contact Information

  • MGM Energy Corp.
    H.W. (Henry) 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)
    Website: www.mgmenergy.com