MGM Energy Corp MGMCF

NWT hopeful of revamped Mackenzie gas project

[glacierman]

"With what is happening in the central Mackenzie Valley with tight oil (the Canol shale oil prospect near Norman Wells, NWT), if that does become a commercially viable play, then all of a sudden there are tremendous amounts of natural gas and natural gas liquids that are going to be produced as a by-product of the oil extraction. That needs to find a way out to market, so that might enter into the economic viability of the Mackenzie gas project itself."

https://www.theglobeandmail.com/report-on-business/breakthrough/nwt-hopeful-of-revamped-mackenzie-gas-project/article16004163/

[OilEng]

The approval of the export approval for Imperial/Exxon does make the Mackenzie Valley Pipeline interesting.   However, the Delta does not have the reserve base to support such a large project.  The project is 30 Mtpa (millions of tonnes per year) which is equal to almost 4 Bcf/d for 25 years.  (convert Mtpa to Bcf/d by multipling by 0.13) This is means that they need about 35

[farml1234]

OilEng What you are saying is they need the Canol period ! Now the big question is who will pay for the MGM lands and how long can MGM hold out ??? JMHO

[OilEng]

Faram1234:  What I am saying is that Imperial needs some testing results on the Canol before they can say anything definitive on the Canol...and so do the MGM shareholders.  Conoco is presently drilling and will be testing, but will not release any information.  However, the MVP is owned by Conoco, Imperial and Shell, Imperial will not be in the dark about the tests.  If the

[farml1234]

OilEng What you are saying is one of these three be our buyer or partner in the canol deal. [ Conoco, Imperial or Shell ]

[OilEng]

No, I didn't say that.  Not sure where you are getting that from.  I said we need some test results to move the stock and Imperial needs them to move the pipeline.

[SmallBet]

great points "OilEng", as always, thanks. I'm curious though. its somewhat of a pickle, kind of like the horse before the cart. we are days away from a "deadline" on the mvp for the partners; yet they individually don't know if the field is a go or not (Canol oil, or gas).

[mlb11]

I do agree that "we" dont know for sure about the canol.  I have to think that the committments Husky have put forth with camps, roads etc is maybe "they" do know.  They just havent told us yet.  Hopefully some positive news soon.