10-29-13 7:30 PM EDT | Email Article
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CALGARY, ALBERTA -- (Marketwired) -- 10/29/13 -- MGM Energy Corp. (TSX:MGX) ("MGM Energy" or the "Company") announced today its financial results for the three month and nine month periods ended September 30, 2013.

The Company reported a net loss for the three month period ended September 30, 2013 of $3.0 million ($0.01 per share) as compared to a net loss of $2.1 million ($0.01 per share) for the three month period ended September 30, 2012. MGM Energy had working capital of $11.0 million as at September 30, 2013, which is expected to be sufficient to fund operations based on current level of expenditures until mid-2015. 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 continues to analyze the results of the East Mackay I-78 well drilled in the Canol shale oil play in the winter of 2012/13 and anticipates that it will provide an update of its original oil in place estimate during the fourth quarter of 2013. The Company will also begin a formal search for a partner on its Canol shale oil play lands in the fourth quarter.

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. Forward-looking information in this news release includes, but is not limited to, MGM Energy's expectations regarding sufficiency of working capital to fund future costs to mid-2015 and the Company's intention to begin a formal search for a partner on its Canol shale oil lands. 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     As at
                                                        September  December
                                                               30        31
                                                             2013      2012
---------------------------------------------------------------------------
                                                                           
ASSETS                                                                     
Current assets                                                             
  Cash and cash equivalents                              $ 11,199  $ 19,869
  Accounts receivable and other current assets              3,117       552
---------------------------------------------------------------------------
                                                           14,316    20,421
Non-current assets                                                         
  Exploration and evaluation assets                        64,533    63,971
  Property and equipment, net                                   -       136
---------------------------------------------------------------------------
                                                           64,533    64,107
                                                                           
---------------------------------------------------------------------------
Total Assets                                             $ 78,849  $ 84,528
---------------------------------------------------------------------------
                                                                           
LIABILITIES                                                                
Current liabilities                                                        
  Accounts payable and accrued liabilities                $ 3,248   $ 5,352
  Due to related parties                                       43        93
---------------------------------------------------------------------------
                                                            3,291     5,445
Non-current liabilities                                                    
  Asset retirement obligation                               4,570     4,018
  Environmental restoration liability                         566         -
---------------------------------------------------------------------------
                                                            5,136     4,018
                                                                           
---------------------------------------------------------------------------
Total Liabilities                                           8,427     9,463
---------------------------------------------------------------------------
                                                                           
SHAREHOLDERS' EQUITY                                                       
  Share capital                                           466,159   466,132
  Contributed surplus                                       9,953     9,201
  Deficit                                                (405,690) (400,268)
---------------------------------------------------------------------------
Total Shareholders' Equity                                 70,422    75,065
---------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity               $ 78,849  $ 84,528
---------------------------------------------------------------------------


MGM Energy Corp.                                                           
Statements of Loss and Comprehensive Loss (Unaudited)                      
($000s)                                                                    
                                     Three Months Ended   Nine Months Ended
                                           September 30        September 30
---------------------------------------------------------------------------
                                         2013      2012      2013      2012
---------------------------------------------------------------------------
                                                                           
Oil and natural gas revenue               $ -       $ -       $ -       $ -
Rental income                               -         -       531         -
---------------------------------------------------------------------------
                                            -         -       531         -
                                                                           
Expenses                                                                   
  General and administrative              675       623     2,103     2,199
  Share-based compensation                237        67       733       354
  Exploration and evaluation            1,981     1,182     2,811     2,732
  Accretion of asset retirement                                            
   obligation                              12        10        33        30
  Depreciation                              -        25        15        68
---------------------------------------------------------------------------
                                        2,905     1,907     5,695     5,383
---------------------------------------------------------------------------
Loss before net finance expenses       (2,905)   (1,907)   (5,164)   (5,383)
---------------------------------------------------------------------------
                                                                           
  Finance income                          (26)      (15)      (95)      (62)
  Finance expenses                         71       255       353       607
---------------------------------------------------------------------------
Net finance expenses                       45       240       258       545
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Net loss and comprehensive loss      $ (2,950) $ (2,147) $ (5,422) $ (5,928)
---------------------------------------------------------------------------
                                                                           
Net loss per Common Share ($/share)                                        
  Basic                               $ (0.01)  $ (0.01)  $ (0.01)  $ (0.02)
  Diluted                             $ (0.01)  $ (0.01)  $ (0.01)  $ (0.02)


MGM Energy Corp.                                                           
Statements of Cash Flows (Unaudited)                                       
($000s)                                                                    
                                                          Nine Months Ended
                                                               September 30
---------------------------------------------------------------------------
                                                             2013      2012
---------------------------------------------------------------------------
                                                                           
Operating activities                                                       
Net loss for the period                                  $ (5,422) $ (5,928)
Adjustments to add (deduct) non-cash items                                 
  Share-based compensation                                    733       354
  Non-cash general and administrative expenses               (11)        32
  Accretion of asset retirement obligation                     33        30
  Depreciation                                                 15        68
Change in non-current environmental restoration                            
 provision                                                    566         -
Change in non-cash working capital                           (330)   (1,444)
---------------------------------------------------------------------------
Cash flows used in operating activities                    (4,416)   (6,888)
---------------------------------------------------------------------------
                                                                           
Financing activities                                                       
Cash payment for options exercised                            (20)        -
Cash received pursuant to exercise of options                  27         -
---------------------------------------------------------------------------
Cash flows from financing activities                            7         -
---------------------------------------------------------------------------
                                                                           
Investing activities                                                       
Capital expenditures                                          128      (659)
Recovery of amounts from Farmout Agreement previously                      
 capitalized                                                    -       617
Change in non-cash working capital                         (4,389)     (403)
---------------------------------------------------------------------------
Cash flows used in investing activities                    (4,261)     (445)
---------------------------------------------------------------------------
                                                                           
Decrease in cash and cash equivalents                      (8,670)   (7,333)
Cash and cash equivalents, beginning of period             19,869    12,064
---------------------------------------------------------------------------
Cash and cash equivalents, end of period                 $ 11,199   $ 4,731
---------------------------------------------------------------------------

Contacts:
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)

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Morningstar - 2013/10/29 - MGM Energy Corp.: Financial Results for the Three and Nine Months Ended September 30, 2013
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