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
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
SYS-CON Events announced today that DatacenterDynamics has been named “Media 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. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
SYS-CON Events announced today TMCnet has been named “Media 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. Technology Marketing Corporation (TMC) is the world's leading business-to-business and integrated marketing media company, servicing niche markets within the com...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...