MGM Energy Corp MGMCF

will a new JV deal will be better than the last deal???

[shambano1]

MGX is searching for a JV partner to help fund the drilling of more wells on their properties.

A deal could be announced soon or it could take weeks if not months since they are not drilling any wells this winter.

I'm going to assume that any deal they do sign will be a better deal than the last one.  I think MGX wil look back and thank Shell for not drilling the second well and getting a higher interest in the land parcel.

the more information that comes out about teh canol shale, again assuming positive news the better deal MGX will sign, so more money for less interest and in the end that's what MGX future for the canol development is all about.

It's not about MGX being the operator and raising billions to develop this play, no my friends that will never happen, it's about keeping as much interest in the producing fields are they can and using other people's money to get there.

The difference between 5-20% interest in billions of revenues is significant to a smaller company.

so I am using these dreadful tax loss selling days and maybe lack of news days to buy more shares but make no mistake there is still risk in this play but day by day we will get information that either reduces the risk, hopefully.

MGM will report some news about their Canol lands, but  maybe it's better to keep as much information as possible tight until a deal is sigfned???

just speculating here, so DYODD

[lovetheoilpatch]

i agree....but we have tobface the facts...tht arent drilling this year.....and tax loss selling has just begun.....i think you can get in aroumd the .12 mark in a few weeks....

[shambano1]

tax loss selling is tricky for sure but I'm not so sure we will get a big drop back to 0.12 mark, but it is possible for sure. the main problem with selling now for tax loss is you have to be pretty sure the company won't release any news of pending deals or news of results that spur the SP back up, or other general news on the canol. for investors that have given up on the company, then

[lovetheoilpatch]

well i hope they align soon....mgm alreadybhas close to 400million o/s......and at 16 cents their are starting to lose credibility.....

[shambano1]

if they can sign a good deal then I think they will quickly regain creditiblity. the key are the terms, more cash for drilling and less JV interest than the last deal with Shell. MGM management are experienced and well connected so they know this game and although the first deal was OK, then next deal has to be better, so more cash for less interest, and then we are off to the races. I don'

[lovetheoilpatch]

but thas what im saying....the riddel factor has had no impqct now for a long time....the company is close to 400million o/s....bad deals and garbage financings did this.....i would at least hope that the guys who run paramount would wanna run mgm a bit better....paramount is great.....how did mgm get no progress virtually....i dont get it...and for this reason i am weary.....but i have heard

[shambano1]

if you are expecting 20 wells from a MGM JV, you had better move on, it won't happen. even the big guys are only getting approval for 2 wells, and that's tight considering all of the prep work that needs to happen before the wells start. I'll be extatic if MGX can sign a good deal or 2 and drill 2 wells next winter, exstatic, happy, thrilled, etc. drilling in the far north is not

[johncalgary]

The canol was just a happenstance. MGM was always about the the MacKenzie Valley gas pipeline. If that happens mgm will do good pretty quick. the canol is just a decades long side sHow they can't affordI

[OilEng]

JohnCalgary:  MGM cannot afford to be in the Canol.  MGM has said that and that is why they want a deal to cover all the development and exploration costs of 1,500 locations.  For an example of deals look at the Encana and Chevron deals in the Duvernay.  Chevron bought out a Luxenbourg company for $1 billion the Chinese bought a 50% interest in Encana lands for $1.2 billion

[OilEng]

Not so sure a deal would only be for two wells. I appreciate that nothing is going to happen for MGM this winter or perhaps the next, but I think the deal will be much bigger.  Or at least I hope so.   I would see a deal which is cash and carry or just carry. Here are some examples only.  I have no idea what the numbers may actually be.  A cash and carry deal might be $400

[johncalgary]

If mgm doesn't get something going soon it'll just be another 5 cent stock headed for the junk tax loss pile.  There are lots of other places to put money.  Talk is cheap and gets old after awhile. 

[SmallBet]

why would MGM not JV with Paramount?  lots of cash there.  strategic tie in.  or would this not look good for credibility?