MGM Energy Corp MGMCF

Shell?

[glacierman]

We’re spending a lot of time talking about HSE & COP.    What about our farm-in partner Shell?    I haven’t heard peep about them.    I know we have an Area of Mutual Interest Agreement (AMI) which gives MGM a veto on new wells for 2 years; otherwise Shell could break the bank if we have to pony up for 50% or $15 million a well.     Any thoughts on where this marriage is going especially with MGM looking for a new JV partner?

[bypp]

I agree with your comments in regards to Husky, they are incredibly tight-lipped. However, I believe it's fairly simple to get their thoughts on the canol. They have so much faith in the potential of the canol play that they've gone to the headaches and expenses of creating an all-weather road, even though nobody had ever gotten approval for a horizontal. I think now that CPC has

[glacierman]

Bypp,  I agree that the de-risking process is going well – Husky and COP are certainly moving ahead with their wallets.   I just want to see more concrete plans between Shell and MGM apart from analyzing core samples.      The winter drilling season needs big time logistical planning which includes moving most equipment and supplies by barge so the window of

[bypp]

Absolutely with you on that Glacierman. I'd like to think that MGM and Shell (or maybe another JV partner) are currently meeting behind closed doors and discussing their future plans. My (wishful thinking) guess would be that these plans would be publicly released and an application for 13-14 winter drilling season would be put into place once Conoco receives the 100% official go-ahead from

[glacierman]

Bypp,   unfortunately, I think the Sahtu region is very limited in the amount of drilling it can sustain at the present time.  It just dawned on me after I read the following statement from Imperial: “(Imperial) plans to conduct its evaluation of seismic data and drill exploration wells on both licenses in 2014 or 2015, leaving over one year to conduct consultation, acquire permits

[bypp]

Very interesting point - I was not aware of the limitations in the region.   Similar to what you mentioned, all it takes is a huge company like Husky or Conoco proving their own plays and snatching up all the other land they can. Or even someone like Shell, wanting to get ahold of some lands.   Who knows, guess we'll just continue to hold and hope for the best. Hopefully we get some

[glacierman]

Bypp, I take some comfort in knowing that the lack of infrastructure and regulatory red tape is the great equalizer.   Little MGM is on the same footing as $77 billion COP; both are only able to drill one exploratory well per 90 day winter drilling season.   Another big vote of confidence was that little MGM was the OPERATOR on East MacKay I-78 and not $200 billion