MGM ENERGY CORP. 
By CALGARY, ALBERTA--(Marketwired - Apr 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 | |
