MGM Energy Corp MGMCF

Husky's other play

[glacierman]

Folks, it appears that Husky is searching for a JV partner for its other oily unconventional play – Rainbow Muskwa. It will be interesting to see if they are more successful than MGM in the Canol. The Rainbow play itself can’t hold a candle to the Canol but Alberta has lower drilling costs and a friendlier more efficient regulator. Time will tell if that makes a difference.

https://pngexchange.com/files/0000/2480/Rainbow_Muskwa_Prospect.pdf

[SmallBet]

One would think that A; Husky should be considered a major or B; they would have enough funds to do this on their own. So why the search for a partner?  What does this mean in the play?  Is the risk too high for one or is there not enough potential?  I don't see any positive in this. Do you?

[glacierman]

It also raises the question - Is Paramount big enough to play in this sandbox?   If not, the search for a JV partner will likely continue even after MGM is out of the picture.  

[shambano1]

I thik we will get an offer for the whole company because those NG lands are very valuable when a pipeline is built and it will be built, it's a just a question of time and maybe which pipeline is the other question. these large reserves are ideal for supplying NG to make LNG, a few big wells producing 200-300 mmcf/d. The Canol is a wild card and this play will get more advanced in the enxt