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
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.