MGM Energy Corp MGMCF

MGX plans???

[shambano1]

based on current plans from Husky and the closeness of MGX's land packages to Husky's, I would think that MGM is in a very nice position for bargaining the sale of more interest in their lands for the partners paying for 1 or more wells.

we all know that MGX doesn't have the size needed to explore and develop in the north, not with a 0.20 stock price but they have some nice lands and if these lands do produce billions of barrels down the road they will profit.

It's hard to ome up with a valuation because it will depend on many factors, NG prices, infrastructure, JV deals, oil prices, pipelines to get the oil to markets, etc.

but with every positiver development, then MGM shoudl move in response, be it news from MGX or news from other oil companies and we know the committment to spend on infastrucutre projects is serious cash.

again, it's hard to coem up with any target price at least for me, and I suspect MGX will not drill anything this winter for 2 reasons.

1-they know what they found 
2-they are starting to here what other's have found and why sell any interest becfore all facts are know.  They can wait out 2013/14 drilling season and as reports come in their SP will move on reports.

I think they can hold out until 2015 before they will need cash to run the business.

so it's not exciting, it's not condusive to rising SP's, but it's a great management move, since it means they won't have to sell as much of their play to get partners to buy in and pay for drilling costs.

Plus until this fracking debate is finished and everyone get's on board, there is no point drilling more vertical wells, they will need a horizontal and fracking to prove their lands will have commericla flows.

I didn't mean to brin everyone down and I'm sure outr SP has much more room to go, but things will not develop as fast as soem of you expect.

still MGX is a key holding of mine but DYODD