MGM Energy Corp. (“MGM Energy”, the “Corporation” or “we”) began carrying on business as an independent company on January 12, 2007, and its common shares were listed on The Toronto Stock Exchange on January 16, 2007. MGM Energy was formed in order to acquire the Mackenzie Delta and Mackenzie Valley oil and gas interests of Paramount Resources Ltd. (“Paramount”) pursuant to a Plan of Arrangement under the ABCA. The Corporation was originally incorporated under the Business Corporations Act (Alberta) (“ABCA”) on October 31, 2006 under the name “1278517 Alberta Ltd.” The Corporation’s name was changed to MGM Energy Corp. on December 9, 2007.
Significant quantities of oil and natural gas have been discovered in the Mackenzie Delta and the central Mackenzie Valley regions of northern Canada since exploration by others began in these areas. To date, energy infrastructure, specifically in the form of pipelines to transport natural gas, has not yet reached regions north of the Cameron Hills area of the southern Northwest Territories. Pipelines to transport oil and other liquid hydrocarbons have not yet reached north of Norman Wells in the central Mackenzie Valley. Until a natural gas pipeline is built from the Mackenzie Valley to connect to the Alberta or British Columbia pipeline systems, there is no commercial method to move natural gas which we, or anyone else, may discover to markets. In addition, a liquids line is required north of Norman Wells to move liquid hydrocarbons discovered north of that area to markets.
Our principal business is to acquire, develop, optimize, exploit and ultimately produce oil and natural gas reserves in northern Canada.
Our objectives are to amass energy resources in Northern Canada, which are expected to increase in value once the Mackenzie Valley pipeline proceeds and to develop oil and natural gas prospects in Northern Canada which can be delivered to market in the absence of a Mackenzie pipeline.
The key components of our strategy are to:
- Aggregate and aquire Northern Canada resources through exploration, acquisition, farm-ins or joint ventures
- Apply modern technology and new concepts to a proven hydrocarbon region
- Operate all key assets to control timing of capital expenditures
- Ensure gas production is ready for shipment at pipeline start-up
- Actively participate in regulatory process and negotiations with pipeline proponents