MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

July 26, 2012 17:15 ET

MGM Energy Corp. Financial Results for the Three and Six Months Ended June 30, 2012

CALGARY, ALBERTA--(Marketwire - July 26, 2012) -

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 LAW

MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) announced today its financial results for the three and six months ended June 30, 2012.

The Company reported a net loss for the three months ended June 30, 2012 of $2.1 million ($3.8 million for the six months ended June 30, 2012). MGM Energy's full unaudited financial statements and accompanying Management's Discussion and Analysis will be filed shortly on the SEDAR website (www.sedar.com).

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. 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)

($000s)

As at
June 30
As at
December 31
2012 2011
ASSETS
Current assets
Cash and cash equivalents $ 7,287 $ 12,064
Accounts receivable and other current assets 460 552
7,747 12,616
Non-current assets
Exploration and evaluation assets 64,448 63,929
Property and equipment, net 187 163
64,635 64,092
Total Assets $ 72,382 $ 76,708
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 889 $ 1,782
Due to related parties 95 86
984 1,868
Non-current liabilities
Asset retirement obligation 3,997 3,977
3,997 3,977
Total Liabilities 4,981 5,845
SHAREHOLDERS' EQUITY
Share capital 454,465 454,465
Contributed surplus 8,911 8,592
Deficit (395,975 ) (392,194 )
Total Shareholders' Equity 67,401 70,863
Total Liabilities and Shareholders' Equity $ 72,382 $ 76,708

MGM Energy Corp.

Statements of Loss and Comprehensive Loss (Unaudited)

($000s)

Three Months Ended June 30 Six Months Ended
June 30
2012 2011 2012 2011
Oil and natural gas revenue $ - $ - $ - $ -
Expenses
General and administrative 880 617 1,576 1,525
Share-based compensation 134 232 287 321
Exploration and evaluation 930 275 1,550 551
Dry hole - - - 2,804
Accretion of asset retirement obligation 10 13 20 29
Depreciation 37 29 43 59
1,991 1,166 3,476 5,289
Loss before net finance expenses (1,991 ) (1,166 ) (3,476 ) (5,289 )
Finance income (20 ) (39 ) (47 ) (50 )
Finance expenses 174 170 352 373
Net finance expenses 154 131 305 323
Net loss and comprehensive loss $ (2,145 ) $ (1,297 ) $ (3,781 ) $ (5,612 )
Net loss per Common Share ($/share)
Basic $ (0.01 ) $ (0.00 ) $ (0.01 ) $ (0.02 )
Diluted $ (0.01 ) $ (0.00 ) $ (0.01 ) $ (0.02 )

MGM Energy Corp.

Statements of Cash Flows (Unaudited)

($000s)


Six Months Ended June 30
2012 2011
Operating activities
Net loss for the period $ (3,781 ) $ (5,612 )
Adjustments to add non-cash items
Share-based compensation 287 321
Non-cash general and administrative expenses 32 -
Accretion of asset retirement obligation 20 29
Depreciation 43 59
Change in non-cash working capital (877 ) (796 )
Cash flows used in operating activities (4,276 ) (5,999 )
Financing activities
- -
Investing activities
Capital expenditures (586 ) (27 )
Proceeds from divestitures - 20,000
Change in non-cash working capital 85 50
Cash flows provided by (used in) investing activities (501 ) 20,023
Increase (decrease) in cash and cash equivalents (4,777 ) 14,024
Cash and cash equivalents, beginning of period 12,064 1,174
Cash and cash equivalents, end of period $ 7,287 $ 15,198

Contact Information

  • MGM Energy Corp.
    H.W. (Henry) Sykes
    President
    (403) 781-7800
    (403) 781-7801 (FAX)

    MGM Energy Corp.
    R. N. (Rick) Miller
    Chief Financial Officer
    (403) 781-7800
    (403) 781-7801 (FAX)