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MGM backs out of horizontal well
Decides not to fund environmental assessment process in Central Mackenzie Valley

Northern News Services
Published Monday, November 12, 2012

NORTHWEST TERRITORIES
MGM Energy Corp. recently announced that it will not fund an environmental assessment process for its exploration licence in the Central Mackenzie Valley.

On Oct. 4, its applications to the Sahtu Land and Water Board for a water licence and land use permit required to allow it to drill a horizontal well on its exploration license 466 were referred to an environmental assessment.

"Shell Canada Energy has exercised its option under the Farmout Agreement with MGM Energy to not fund the environmental assessment process" and now it no longer has the option to drill a second well, according to a release statement.

MGM Energy also announced that it will not be proceeding on its own with the environmental assessment process requested by the board in respect of the second horizontal well, and that its applications have been withdrawn.

This action has no impact on MGM Energy's permits already issued in respect of a vertical well to be drilled this upcoming winter in the same area, according to the statement.

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