Welcome!

News Feed Item

MGM Energy Corp. Announces 2013 Financial Results and Provides Update on Independent Committee

CALGARY, ALBERTA -- (Marketwired) -- 03/12/14 -- MGM Energy Corp. ("MGM Energy" or the "Company") (TSX: MGX) announced today its financial results for the year ended December 31, 2013.

The Company reported a net loss for the year ended December 31, 2013 of $8.3 million ($0.02 per share) as compared to a net loss of $8.1 million ($0.03 per share) for the year ended December 31, 2012. MGM Energy's full audited financial statements and accompanying Management's Discussion and Analysis will be filed shortly on the SEDAR website (www.sedar.com).

Further to its March 11, 2014 press release, MGM Energy also announced that a special committee of the independent members of the board of directors of the Company (the "Committee") has been established to consider the proposal (the "Proposal") received from Paramount Resources Ltd. ("Paramount"), as described in that press release. The Committee is comprised of all four independent members of the board of directors. The Committee has retained independent legal counsel to advise the Committee and is pursuing an engagement with an independent advisor to prepare an independent valuation in accordance with MI 61-101. It is anticipated that the work of the Committee will take place over the ensuing weeks. The Committee has requested that management update the data room that was available during its search for a partner in the Canol shale oil play, and to make that data room available to any party interested in pursuing an alternative transaction.

Given the consideration of the Proposal, the Company has decided to postpone its annual meeting currently scheduled for April 23, 2014 to a date to be determined.

Shareholders will be advised if and at such time that a binding arrangement agreement is reached between MGM Energy and Paramount. There can be no assurance that any binding agreement will be reached or that a transaction will be pursued or recommended by the board of directors of the Company.

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".

This document contains "forward-looking statements" regarding Paramount's Proposal and the establishment of the Committee including statements regarding the Proposal and terms and conditions thereof. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the parties will not proceed with the transaction, that the terms of the transaction will vary materially from those proposed, and that the conditions precedent to proceeding with the transaction may not be met on a timely basis or at all, including negotiation and execution of definitive documentation. The forward-looking statements contained herein are made at the date of this document and the Company does not undertake any obligation to update publicly or revise any of the forward-looking statements contained in this document, whether as a result of new information, future event or otherwise, except as required by applicable securities laws.


MGM Energy Corp.
Balance Sheets
($000s)


As at December 31                                         2013         2012
----------------------------------------------------------------------------

ASSETS
Current assets
  Cash and cash equivalents                        $     9,783  $    19,896
  Accounts receivable and other current assets           1,484          552
----------------------------------------------------------------------------
                                                        11,267       20,421
Non-current assets
  Exploration and evaluation assets                     65,059       63,971
  Property and equipment, net                                -          136
----------------------------------------------------------------------------
                                                        65,059       64,107

----------------------------------------------------------------------------
Total Assets                                       $    76,326  $    84,528
----------------------------------------------------------------------------

LIABILITIES
Current liabilities
  Accounts payable and accrued liabilities         $     2,479  $     5,352
  Due to related parties                                    41           93
----------------------------------------------------------------------------
                                                         2,520        5,445

Non-current liabilities
  Asset retirement obligations                           5,147        4,018
  Environmental restoration liability                      833            -
----------------------------------------------------------------------------
                                                         5,980        4,018

----------------------------------------------------------------------------
Total Liabilities                                        8,500        9,463
----------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
  Share capital                                        466,159      466,132
  Contributed surplus                                   10,281        9,201
  Deficit                                             (408,614)    (400,268)
----------------------------------------------------------------------------
Total Shareholders' Equity                              67,826       75,065
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity         $    76,326  $    84,528
----------------------------------------------------------------------------

MGM Energy Corp.
Statements of Loss and Comprehensive Loss
($000s, except as noted)


Years Ended December 31                                   2013         2012
----------------------------------------------------------------------------

Rental income                                      $       531  $         -
----------------------------------------------------------------------------
                                                           531            -
Expenses
  General and administrative                             3,405        3,393
  Share-based compensation                               1,061          548
  Exploration and evaluation                             4,050        3,405
  Accretion of asset retirement obligation                  44           41
  Depreciation                                              15           93
----------------------------------------------------------------------------
                                                         8,575        7,480
----------------------------------------------------------------------------
Loss before net finance expense                         (8,044)      (7,480)
----------------------------------------------------------------------------

  Finance income                                          (119)         (78)
  Finance expense                                          421          672
----------------------------------------------------------------------------
Net finance expense                                        302          594
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net loss and comprehensive loss                    $    (8,346) $    (8,074)
----------------------------------------------------------------------------

Net loss per common share ($/share)
  Basic                                            $     (0.02) $     (0.03)
  Diluted                                          $     (0.02) $     (0.03)

MGM Energy Corp.
Statements of Cash Flows
($000s)
Years Ended December 31                                   2013         2012
----------------------------------------------------------------------------

Operating activities
Net loss                                           $    (8,346) $    (8,074)
Adjustments to add (deduct) non-cash items
  Stock-based compensation                               1,061          548
  Non-cash general and administrative expense              (11)          61
  Accretion of asset retirement obligations                 44           41
  Depreciation                                              15           93
Change in non-current environmental restoration
 provision                                                 833            -
Change in non-cash working capital                         105          (68)
----------------------------------------------------------------------------
Cash flows used in operating activities                 (6,299)      (7,399)
----------------------------------------------------------------------------

Financing activities
Cash payment for options exercised                         (20)           -
Common shares issued, net of issuance costs                 27       11,667
----------------------------------------------------------------------------
Cash flows from (used in) financing activities               7       11,667
----------------------------------------------------------------------------

Investing activities
Capital expenditures                                       168         (109)
Change in non-cash working capital                      (3,962)       3,646
----------------------------------------------------------------------------
Cash flows from investing activities                    (3,794)       3,537
----------------------------------------------------------------------------

Increase (decrease) in cash and cash equivalents       (10,086)       7,805
Cash and cash equivalents, beginning of year            19,869       12,064
----------------------------------------------------------------------------
Cash and cash equivalents, end of year             $     9,783  $    19,869
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...