MGM Energy Corp.
TSX : MGX

MGM Energy Corp.

October 30, 2012 17:07 ET

MGM Energy Corp.: Financial Results for the Three and Nine Months Ended September 30, 2012

CALGARY, ALBERTA--(Marketwire - Oct. 30, 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 nine months ended September 30, 2012.

The Company reported a net loss for the three months ended September 30, 2012 of $2.1 million ($5.9 million for the nine months ended September 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
September 30
As at
December 31
2012 2011
ASSETS
Current assets
Cash and cash equivalents $ 4,731 $ 12,064
Accounts receivable and other current assets 2,254 552
6,985 12,616
Non-current assets
Exploration and evaluation assets 63,904 63,929
Property and equipment, net 161 163
64,065 64,092
Total Assets $ 71,050 $ 76,708
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 1,628 $ 1,782
Due to related parties 94 86
1,722 1,868
Non-current liabilities
Asset retirement obligation 4,007 3,977
4,007 3,977
Total Liabilities 5,729 5,845
SHAREHOLDERS' EQUITY
Share capital 454,465 454,465
Contributed surplus 8,978 8,592
Deficit (398,122 ) (392,194 )
Total Shareholders' Equity 65,321 70,863
Total Liabilities and Shareholders' Equity $ 71,050 $ 76,708
MGM Energy Corp.
Statements of Loss and Comprehensive Loss (Unaudited)
($000s)
Three Months Ended September 30 Nine Months Ended September 30
2012 2011 2012 2011
Oil and natural gas revenue $ - $ - $ - $ -
Expenses
General and administrative 623 675 2,199 2,200
Share-based compensation 67 198 354 519
Exploration and evaluation 1,182 898 2,732 1,449
Dry hole - - - 2,804
Accretion of asset retirement obligation 10 14 30 43
Depreciation 25 31 68 90
1,907 1,816 5,383 7,105
Loss before net finance expenses (1,907 ) (1,816 ) (5,383 ) (7,105 )
Finance income (15 ) (37 ) (62 ) (87 )
Finance expenses 255 170 607 543
Net finance expenses 240 133 545 456
Net loss and comprehensive loss $ (2,147 ) $ (1,949 ) $ (5,928 ) $ (7,561 )
Net loss per Common Share ($/share)
Basic $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 )
Diluted $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 )
MGM Energy Corp.
Statements of Cash Flows (Unaudited)
($000s)

Nine Months Ended September 30
2012 2011
Operating activities
Net loss for the period $ (5,928 ) $ (7,561 )
Adjustments to add (deduct) non-cash items
Share-based compensation 354 519
Non-cash general and administrative expenses 32 (15 )
Accretion of asset retirement obligation 30 43
Depreciation 68 90
Change in non-cash working capital (1,444 ) (574 )
Cash flows used in operating activities (6,888 ) (7,498 )
Financing activities
- -
Investing activities
Capital expenditures (659 ) (50 )
Recovery of amounts from Farmout Agreement previously capitalized 617 -
Proceeds from divestitures - 20,000
Change in non-cash working capital (403 ) (46 )
Cash flows provided by (used in) investing activities (445 ) 19,904
Increase (decrease) in cash and cash equivalents (7,333 ) 12,406
Cash and cash equivalents, beginning of period 12,064 1,174
Cash and cash equivalents, end of period $ 4,731 $ 13,580

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)