MGM Energy Corp MGMCF

Q & A with Henry Sykes

[glacierman]

GM:  Are you surprised that your old mates at COP have unveiled a 10 well program even before they flow tested P-20?   It seems to me to be a tremendous vote of confidence on the Canol shale.
HS:  My understanding is that COP is consulting on a 6 well program, not 10, but you could be right.  Seems to be a vote of confidence, but on the other hand, it’s not like COP to get ahead of themselves, which is sort of how I see this.

GM:  COP seems to be running into some nagging delays on their horizontal.   Do you think they still have sufficient time to flow test?  
HS:   As for the nagging delays, rumour has it that a large vessel containing water for fraccing leaked, spilling large volumes of fresh water.  Not a big deal, except that it takes time to replace, and draws unwanted attention . . . time will tell as to whether they can get two wells done.

GM:  Would a company like COP be willing to strand some equipment in order to complete the test - worst case scenerio?
HS: As for stranding equipment, they did that last summer to get a head start on the winter, so don’t see an issue there for them.

GM: The explorer group has vowed to share infrastructure in order to reduce costs.  I'm assuming that means all weather roads.    Are their plans in the works to develop a shared road network? 
HS:  Sharing infrastructure – we said we would try, not that we would under any circumstances.  I expect the NEB (or whoever the new regulator is come April) will have something to say about that.  But no current plans to share roads since only COP is active (other than the Husky roads).