SYS-CON MEDIA Authors: Gilad Parann-Nissany, Michael Bushong, Eric Brown, Kevin Benedict, PR.com Newswire

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MGM Energy Corp.: Financial Results for the Three Months Ended March 31, 2014

CALGARY, ALBERTA -- (Marketwired) -- 04/22/14 -- MGM Energy Corp. ("MGM Energy" or the "Company") (TSX:MGX) announced today its financial results for the three months ended March 31, 2014.

The Company reported a net loss for the three months ended March 31, 2014 of $1.5 million ($0.00 per share) as compared to a net loss of $0.6 million ($0.00 per share) for the three months ended March 31, 2013.

MGM Energy's full unaudited financial statements and accompanying Management's Discussion and Analysis will be filed shortly on the SEDAR website (www.sedar.com).

MGM Energy is a Canadian oil and natural gas exploration and development company active in Northern Canada. MGM Energy's common shares are listed on the Toronto Stock Exchange under the symbol "MGX".

Certain statements or information included in this press release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. Although MGM Energy believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because MGM Energy can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by MGM Energy and described in the forward-looking statements or information. The forward-looking statements or information contained in this document are made as of the date hereof and MGM Energy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


MGM Energy Corp.                                                           
Condensed Interim Balance Sheets (Unaudited)                               
($000s)                                                                    
                                                       As at          As at
                                                    March 31    December 31
                                                        2014           2013
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ASSETS                                                                     
Current assets                                                             
  Cash and cash equivalents                          $ 7,723        $ 9,783
  Accounts receivable and other current                                    
   assets                                              1,053          1,484
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                                                       8,776         11,267
Non-current assets                                                         
  Exploration and evaluation assets                   65,059         65,059
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                                                      65,059         65,059
                                                                           
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Total Assets                                        $ 73,835       $ 76,326
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LIABILITIES                                                                
Current liabilities                                                        
  Accounts payable and accrued liabilities           $ 1,314        $ 2,479
  Due to related parties                                  29             41
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                                                       1,343          2,520
Non-current liabilities                                                    
  Asset retirement obligation                          5,160          5,147
  Environmental restoration liability                    833            833
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                                                       5,993          5,980
                                                                           
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Total Liabilities                                      7,336          8,500
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SHAREHOLDERS' EQUITY                                                       
  Share capital                                      466,187        466,159
  Contributed surplus                                 10,416         10,281
  Deficit                                           (410,104)      (408,614)
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Total Shareholders' Equity                            66,499         67,826
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Total Liabilities and Shareholders' Equity          $ 73,835       $ 76,326
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MGM Energy Corp.                                                           
Condensed Interim Statements of Loss and Comprehensive Loss (Unaudited)    
($000s)                                                                    
                                               Three Months Ended March 31 
---------------------------------------------------------------------------
                                                        2014           2013
---------------------------------------------------------------------------
                                                                           
Oil and natural gas revenue                              $ -            $ -
Rental income                                              -            531
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                                                         $ -          $ 531
                                                                           
Expenses                                                                   
  General and administrative                             998            529
  Share-based compensation                               163            211
  Exploration and evaluation                             291            270
  Accretion of asset retirement obligation                13             10
  Depreciation                                             -             15
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                                                       1,465          1,035
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Loss before net finance expenses                      (1,465)          (504)
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  Finance income                                         (23)           (37)
  Finance expenses                                        48            163
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Net finance expenses                                      25            126
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Net loss and comprehensive loss                     $ (1,490)        $ (630)
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Net loss per Common Share ($/share)                                        
  Basic                                              $ (0.00)       $ (0.00)
  Diluted                                            $ (0.00)       $ (0.00)


MGM Energy Corp.                                                           
Condensed Interim Statements of Cash Flows (Unaudited)                     
($000s)                                                                    
                                               Three Months Ended March 31 
---------------------------------------------------------------------------
                                                        2014           2013
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Operating activities                                                       
Net loss for the period                             $ (1,490)        $ (630)
Adjustments to add (deduct) non-cash items                                 
  Share-based compensation                               163            211
  Accretion of asset retirement obligation                13             10
  Depreciation                                             -             15
  Non-cash exploration and evaluation                                      
   expenses                                                -            (51)
Change in non-cash working capital                    (1,475)        (3,133)
Change in restricted cash balance                          -        (12,000)
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Cash flows used in operating activities               (2,789)       (15,578)
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Financing activities                                                       
Cash payment for options exercised                         -            (20)
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Cash flows used in financing activities                    -            (20)
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Investing activities                                                       
Capital expenditures                                       -            103
Change in non-cash working capital                       729             44
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Cash flows provided by investing activities              729            147
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Decrease in cash and cash equivalents                 (2,060)       (15,451)
Cash and cash equivalents, beginning of                                    
 period                                                9,783         19,869
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Cash and cash equivalents, end of period             $ 7,723        $ 4,418
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Contacts:
MGM Energy Corp.
H.W. (Henry) Sykes
President
(403) 781-7800
(403) 781-7801 (FAX)

MGM Energy Corp.
R. N. (Rick) Miller
Chief Financial Officer
(403) 781-7800
(403) 781-7801 (FAX)

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