MGM Energy Corp MGMCF

If an application is made...

[geodude13]

I think if MGM makes an application for another well(s) then its an endorsement on the play...if it gets silent then its time to reconsider the potential to get paid to wait.

If there is an application in the queue by the end of June then its an endorsement.  If there is no mention of another well then its the opposite.

Regards,

[SmallBet]

if an application for more wells or further development are made by others (Husky, Conoco etc) and not MGM, do you still see this as an endorsement?  my question is, why the importance of June as a deadline?

[stateside]

Husky is spending $25-$35 million as we speak to build a year round road and camp.  Not sure what type of confirmation is needed other than that.  At least Husky is confident ...............the others ??   stateside

[itsalie]

Husky has the lions share of the land up there so it makes sense for them.. but it certainly doesn't hurt mgm's prospects..

[geodude13]

They can't stage the logistics without suitable notice and it takes three months to clear the approval process on a fast track application.  Typically it looks like it takes six months to get permits so June is the latest an application could be filed, cleared and mobilize the materails for a January drill program.  Just averaging the historical timelines for previous wells...no

[geodude13]

stateside, your assuming the rock if present is uniformly oil-prone...if you were in the original wells drilled by IFR and HSE you'll remember the "Flintstone" wells looked great but failed to be economic....that was the start of the play...slater river, B44 and later wells were equally hit or miss....I think this rock is a lot more complex than first envisaged.  I believe Husky

[SigmaKappa]

Husky didnt pay 50X more. Husky paid $0 for the land, the same with all companies. Its all work commitmments. Husky made a work committment for their land. Sure its high but regardless the exploration program needed to be done regardless is high..which satsifies the land committment.

[itsalie]

    According to the article below Husky paid 100* more then mgm   CALGARY, Alberta, July 5 (Reuters) - Husky Energy Inc (HSE.TO) has opened its wallet to grab the lion's share of C$534 million ($556 million) of winning bids for oil-drilling rights in the central Mackenzie Valley area of Canada's far north, sparking speculation it may be chasing a rich prospect

[SigmaKappa]

Once again these are work committments to spend the money and not actual land sales. https://m.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/n-americas-energy-renaissance-more-like-a-revival/article5466109/?service=mobile

[itsalie]

thanks for the link.. though I'd say whether its a commitment or actual cash doesn't matter. Husky has drilling rights to 100* more commitment then mgm and I think that was the point..

[SigmaKappa]

That point doesnt really matter though. TO bring it to development Husky will need to spend that kind of money anways on an exploraiton pogram.   The same goes for same Conoco, there committmenet might be $50MM (cant recall exact number) but their program to get to development will be substancially higher than that regardless.