CALGARY, ALBERTA--(Marketwire - July 27, 2012) -
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MGM Energy Corp. (TSX:MGX) ("MGM Energy") announced today that it has received a Land Use Permit and Water License from the Sahtu Land and Water Board to drill a vertical well on EL466B in the Canol shale oil play in the winter of 2012/13. The vertical well, East MacKay, will include logging, coring and multiple fracs to assess the potential of the Bluefish and Canol Formations.
As announced in its press release of June 28, 2012, MGM Energy has entered into a farmout agreement with Shell Canada Energy ("Shell") whereby Shell will fund 100% of the cost to drill and complete the well to earn a 37.5% interest in EL466B. MGM Energy will be the operator of the well.
"We're extremely pleased to have received these necessary regulatory approvals to allow us to proceed with the well for this winter" said Henry Sykes, President of MGM Energy. "We are well underway in the planning for the well and we look forward to providing operational updates as events occur."
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, receipt of regulatory approval for the proposed drilling program, timing of drilling program, the completion of the farmout agreement and the potential of the Canol shale oil play. .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.