MGM Energy Corp.: Financial Results for the Three Months Ended March 31, 2014

CALGARY, ALBERTA–(Marketwired – April 22, 2014) – MGM Energy Corp. (“MGM Energy” or the “Company”) (TSX:MGX) announced today its financial results for the three months ended March 31, 2014.

The Company reported a net loss for the three months ended March 31, 2014 of $1.5 million ($0.00 per share) as compared to a net loss of $0.6 million ($0.00 per share) for the three months ended March 31, 2013.

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 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. 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.
Condensed Interim Balance Sheets (Unaudited)
($000s)
		As at March 31	As at December 31
		2014	2013
ASSETS
Current assets
	Cash and cash equivalents	$ 7,723	$ 9,783
	Accounts receivable and other current assets	1,053	1,484
		8,776	11,267
Non-current assets
	Exploration and evaluation assets	65,059	65,059
		65,059	65,059
Total Assets		$ 73,835	$ 76,326
LIABILITIES
Current liabilities
	Accounts payable and accrued liabilities	$ 1,314	$ 2,479
	Due to related parties	29	41
		1,343	2,520
Non-current liabilities
	Asset retirement obligation	5,160	5,147
	Environmental restoration liability	833	833
		5,993	5,980
Total Liabilities		7,336	8,500
SHAREHOLDERS’ EQUITY
	Share capital	466,187	466,159
	Contributed surplus	10,416	10,281
	Deficit	(410,104)	(408,614)
Total Shareholders’ Equity		66,499	67,826
Total Liabilities and Shareholders’ Equity		$ 73,835	$ 76,326

MGM Energy Corp.
Condensed Interim Statements of Loss and Comprehensive Loss (Unaudited)
($000s)
		Three Months Ended March 31
		2014	2013
Oil and natural gas revenue		$ –	$ –
Rental income		–	531
		$ –	$ 531
Expenses
	General and administrative	998	529
	Share-based compensation	163	211
	Exploration and evaluation	291	270
	Accretion of asset retirement obligation	13	10
	Depreciation	–	15
		1,465	1,035
Loss before net finance expenses		(1,465)	(504)
	Finance income	(23)	(37)
	Finance expenses	48	163
Net finance expenses		25	126
Net loss and comprehensive loss		$ (1,490)	$ (630)
Net loss per Common Share ($/share)
	Basic	$ (0.00)	$ (0.00)
	Diluted	$ (0.00)	$ (0.00)

MGM Energy Corp.
Condensed Interim Statements of Cash Flows (Unaudited)
($000s)
		Three Months Ended March 31
		2014	2013
Operating activities
Net loss for the period		$ (1,490)	$ (630)
Adjustments to add (deduct) non-cash items
	Share-based compensation	163	211
	Accretion of asset retirement obligation	13	10
	Depreciation	–	15
	Non-cash exploration and evaluation expenses	–	(51)
Change in non-cash working capital		(1,475)	(3,133)
Change in restricted cash balance		–	(12,000)
Cash flows used in operating activities		(2,789)	(15,578)
Financing activities
Cash payment for options exercised		–	(20)
Cash flows used in financing activities		–	(20)
Investing activities
Capital expenditures		–	103
Change in non-cash working capital		729	44
Cash flows provided by investing activities		729	147
Decrease in cash and cash equivalents		(2,060)	(15,451)
Cash and cash equivalents, beginning of period		9,783	19,869
Cash and cash equivalents, end of period		$ 7,723	$ 4,418