MGM Energy reported that the net loss for the period was principally due to the dry-hole costs of $34.2 million from the North Ellice J-17 and Ellice A-25 wells which were previously announced as being unsuccessful.
As previously announced, MGM Energy has completed its 2008/2009 winter drilling program and all equipment has been demobilized from their locations.
“Our current estimate of costs for the drilling program indicates that we will have approximately $18 million in working capital at the end of the second quarter of 2009 once all costs related to the program have been incurred. This will be sufficient to cover all of our commitments and operating costs to at least the third quarter of 2010, assuming that we do not complete a drilling program next year. We are in the process of determining our plans for the 2009/10 season and financing options for any drilling that we might undertake. We look forward to announcing our plans, likely by the end of the second quarter”, said Henry Sykes, president of MGM Energy.
