MGM Energy Corp. announced unaudited earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported a net loss and comprehensive loss of CAD 630,000 or CAD 0.00 per basic and diluted share as compared to a net loss of CAD 1,636,000 or CAD 0.01 per basic and diluted a year ago. Loss before net finance expense was CAD 504,000 against CAD 1,485,000 a year ago. Cash flows used in operating activities was CAD 15,578,000 against CAD 2,648,000 a year ago. Capital expenditures were CAD 103,000 against CAD 278,000 a year ago. Rental income was CAD 531,000.

MGM Energy Corp. announced early results from its East MacKay I-78 well drilled this winter to test the Canol shale formation on the company's EL 466B in the Central Mackenzie Valley. The East MacKay I-78 well, a vertical well, spud on January 27, 2013 and reached target depth of 2001 metres on February 15, 2013. Following logging, casing and the running of the completion string, the drilling rig was released on February 25, 2013. Drilling operations proceeded without incident and all formations were present as expected. In particular, the primary target, the Canol shale, was found between 1819 metres and 1919 metres, and the Bluefish formation, the secondary target, was found between 1936 metres and 1957 metres. Cores were taken within the Canol and Bluefish formations, as well as the upper Hume formation, immediately below the Bluefish. A full suite of electric logs was run once drilling was completed. Testing operations on the Bluefish formation began on March 2, 2013. One zone of the Bluefish formation was fractured, using a small 20 tonne frac energized with nitrogen. The frac was successful, with emplacement of the sand. After flowing back approximately 30% of the frac fluid, the well ceased flowing due to lack of formation pressure. Rather than undertaking operations to resume the flow, and given the seasonal constraints of operating in the Central Mackenzie Valley, the decision was made to discontinue testing of this secondary zone to ensure sufficient time to test the primary Canol target. Testing operations on the Canol formation began on March 4, 2013. The Canol formation was fracced in three stages, with one stage having two perforation zones. Each of these fracs was again small, ranging from 23 tonnes to 35 tonnes, using a total of 2,450 barrels of frac fluid. All fracs were successful and all were energized with nitrogen. Approximately 70% of the frac fluid was recovered in the first five days after fraccing. During that time, the well continued to clean up. Over the four day period of March 10 - 14, 2013, the well returned approximately 140 barrels of fluid consisting of a mixture of frac fluid, and formation hydrocarbons, the latter consisting of light, sweet, crude oil and natural gas. Throughout this period, nitrogen was used to assist in lifting fluids from the well. Because of seasonal constraints on activity, well testing operations in the Canol formation were concluded on March 15, 2013 and equipment has since been demobilized. In order to obtain pressure data, gauges have been left in the hole, and are expected to be retrieved in the summer/fall of 2013. The company also drilled, sampled and monitored three water wells in the area immediately adjacent to the I-78 well.

MGM Energy Corp. reported audited financial results for the year ended December 31, 2012. Loss before net finance expense was CAD 7,480,000 against CAD 160,186,000 for the same period in the last year. Net loss and comprehensive loss was CAD 8,074,000 against CAD 160,859,000 for the same period in the last year. Basic and diluted net loss per common share was CAD 0.03 against CAD 0.51 for the same period in the last year. Cash flows used in operating activities was negative CAD 7,399,000 against CAD 8,830,000 for the same period in the last year. Capital expenditures were CAD 109,000 against CAD 260,000 for the same period in the last year. The loss was reduced significantly from the loss in the prior year as there was a writedown in the book value of the company's northern Canadian petroleum and natural gas properties of CAD 150 million for the year ended December 31, 2011.