MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

April 22, 2014 17:00 ET

MGM Energy Corp.: Financial Results for the Three Months Ended March 31, 2014

CALGARY, ALBERTA--(Marketwired - April 22, 2014) - MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) announced today its financial results for the three months ended March 31, 2014.

The Company reported a net loss for the three months ended March 31, 2014 of $1.5 million ($0.00 per share) as compared to a net loss of $0.6 million ($0.00 per share) for the three months ended March 31, 2013.

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.
Condensed Interim Balance Sheets (Unaudited)
($000s)
As at
March 31
As at
December 31
2014 2013
ASSETS
Current assets
Cash and cash equivalents $ 7,723 $ 9,783
Accounts receivable and other current assets 1,053 1,484
8,776 11,267
Non-current assets
Exploration and evaluation assets 65,059 65,059
65,059 65,059
Total Assets $ 73,835 $ 76,326
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 1,314 $ 2,479
Due to related parties 29 41
1,343 2,520
Non-current liabilities
Asset retirement obligation 5,160 5,147
Environmental restoration liability 833 833
5,993 5,980
Total Liabilities 7,336 8,500
SHAREHOLDERS' EQUITY
Share capital 466,187 466,159
Contributed surplus 10,416 10,281
Deficit (410,104) (408,614)
Total Shareholders' Equity 66,499 67,826
Total Liabilities and Shareholders' Equity $ 73,835 $ 76,326
MGM Energy Corp.
Condensed Interim Statements of Loss and Comprehensive Loss (Unaudited)
($000s)
Three Months Ended March 31
2014 2013
Oil and natural gas revenue $ - $ -
Rental income - 531
$ - $ 531
Expenses
General and administrative 998 529
Share-based compensation 163 211
Exploration and evaluation 291 270
Accretion of asset retirement obligation 13 10
Depreciation - 15
1,465 1,035
Loss before net finance expenses (1,465) (504)
Finance income (23) (37)
Finance expenses 48 163
Net finance expenses 25 126
Net loss and comprehensive loss $ (1,490) $ (630)
Net loss per Common Share ($/share)
Basic $ (0.00) $ (0.00)
Diluted $ (0.00) $ (0.00)
MGM Energy Corp.
Condensed Interim Statements of Cash Flows (Unaudited)
($000s)
Three Months Ended March 31
2014 2013
Operating activities
Net loss for the period $ (1,490) $ (630)
Adjustments to add (deduct) non-cash items
Share-based compensation 163 211
Accretion of asset retirement obligation 13 10
Depreciation - 15
Non-cash exploration and evaluation expenses - (51)
Change in non-cash working capital (1,475) (3,133)
Change in restricted cash balance - (12,000)
Cash flows used in operating activities (2,789) (15,578)
Financing activities
Cash payment for options exercised - (20)
Cash flows used in financing activities - (20)
Investing activities
Capital expenditures - 103
Change in non-cash working capital 729 44
Cash flows provided by investing activities 729 147
Decrease in cash and cash equivalents (2,060) (15,451)
Cash and cash equivalents, beginning of period 9,783 19,869
Cash and cash equivalents, end of period $ 7,723 $ 4,418

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)