MGX Minerals Acquires Additional 10,000 Acres of Oil and Gas Rights at Paradox Basin, Utah Petrolithium Project
(firmenpresse) - MGX Minerals Acquires Additional 10,000 Acres of Oil and Gas Rights at Paradox Basin, Utah Petrolithium Project
VANCOUVER, BRITISH COLUMBIA / May 8, 2018 / MGX Minerals Inc. (MGX or the Company) (CSE: XMG / OTCQB: MGXMF / FSE: 1MG) is pleased to announce it has acquired an additional 10,331.32 acres of Oil and Gas Leases (Leases) located within the Companys unitized 80,380-acre Blueberry Unit (Blueberry Unit). The newly acquired leases are located within the proposed 3D seismic geophysical survey area, which is scheduled to commence in August and will include approximately 9,000 data points. To date the Company has conducted a paleontology survey and is nearing completion of the archeological survey.
Under terms of the Purchase and Sale Agreement (the Agreement), MGX has the option to earn a Net Revenue Interest (NRI) on 9,158.4 gross/net acres within the Companys area of mutual interest. Details of the Agreement are as follows:
- Purchase Price of US$145,000. An initial installment of $50,000 has been paid with the remaining installments due on September 5, 2018 ($50,000) and March 5, 2019 ($45,000).
- Seller delivered 83.0% NRI on 8,481.53 acres, and 82.5% on remaining 677.31 acres.
- On or before December 15, 2021, MGX will drill a well on the largest of the acquired leases to a TVD of 8,000' or to a depth sufficient to test the Cane Creek Shale (Cycle 21) of the Paradox Formation. MGX has the option to extend the drilling obligation for an additional three years in exchange for payment of an additional $100,000.
- MGX also has an option to acquire an additional lease covering 1,172.48 acres if and when that lease is issued by the BLM.
The Blueberry Unit (oil, gas and lithium) and Lisbon Valley Claims (lithium) now consists of approximately 115,000 acres of oil and gas leases and 118,000 acres of largely overlying and contiguous mineral claims. Brine content within the Lisbon Valley oilfield have been historically reported as high as 730 ppm lithium (Superior Oil 88-21P).
The Project is being simultaneously explored for oil, gas, lithium and other brine minerals to determine locations for deployment of the Companys lithium and mineral extraction technology.
Blueberry Unit
MGX is currently earning a 75% working interest in the Project, with the remaining interest primarily controlled by the Paradox Partner. The Paradox Partner has been engaged by MGX as subcontracted operator of the Project. The Project is host to National Instrument (N.I) 51-101 estimated prospective resources (the Estimate) consisting of leasehold and royalty interests in San Juan County, Utah and Miguel County. Colorado. The estimate was prepared by the Ryder Scott Company, L.P. (Ryder Scott), an independent qualified reserves evaluator within the meaning of N.I. 51-101 - Standards of Disclosure for Oil and Gas Activities (NI 51-101), with an effective date of June 30, 2017. The Estimate was prepared in accordance with N.I. 51-101 and the Canadian Oil and Gas Evaluation.
Estimated Gross Volumes
Unrisked Prospective (Recoverable) Hydrocarbon Resources
Leasehold Interest in San Juan County, Utah and San Miguel County, Colorado of
MGX MINERALS INC.
As of June 30,2017
FormationULTIMATE RECOVERY OIL ULTIMATE RECOVERY GAS COC*
- -
MMBO BCF
LOW BEST HIGH LOW BEST HIGH
Paradox Clastics
CB2 41.799 59.49885.32433.441 47.60268.2660.075
CB3 41.915 60.64185.83333.536 48.51768.6710.075
CB4 12.766 18.74526.69210.213 14.78121.3550.075
CB5 33.185 48.06568.84126.548 38.45355.0740.075
CB6 6.603 9.607 13.8745.283 7.686 11.1000.045
CB7 1.892 2.735 3.948 1.514 2.188 3.158 0.032
CB8 19.108 27.52539.07915.287 22.02231.2640.068
CB9 11.452 16.67123.7119.162 13.33718.9700.068
CB10 14.565 21.16930.08811.652 16.93624.0730.068
CB11 2.021 2.929 4.244 1.617 2.344 3.396 0.032
CB12 9.352 13.60919.5257.482 10.88715.6200.045
CB13 9.333 13.15819.2977.468 10.81515.4380.045
CB14 3.195 4.621 6.634 2.556 3.697 5.308 0.045
CB15 6.455 9.432 13.6335.164 7.546 10.9080.045
CB16 2.752 3.987 5.768 2.202 3.190 4.615 0.045
CB17 3.770 5.390 7.835 3.016 4.313 6.269 0.040
CB18 4.673 6.728 9.572 3.739 5.383 7.658 0.045
CB19 16.690 24.22634.54213.358 19.38127.6360.068
CB20 2.931 4.253 6.118 2.435 3.402 4.895 0.040
CB21 35.336 51.33873.97128.272 41.07359.1770.097
(Cane
Creek)
CB22 5.635 8.261 11.9574.508 6.609 9.566 0.045
Leadville1.000 2.100 4.000 153.000 231.70341.600.066
0 0
*COC - Chance of Commerciality = Chance of Discovery * Chance of Development
Lisbon Valley and Paradox Basin Geology
The Project is proximate to Lisbon Valley oilfield which has approximately 140 wells. According to production statistics, as reported by the Utah Department of Natural Resources, Oil, Gas and Mining Division, cumulative lifetime production within the Lisbon Valley oilfield has totaled 51.4 million barrels of oil as of June 2017 (Oil Production by Field, Utah Department of Natural Resources, Division of Oil, Gas and Mining; June 2017; Click Here). The Paradox Basin has been noted by the USGS as having one of the largest undeveloped oil and gas fields in the United States (Assessment of Oil and Gas Resources in the Paradox Basin Province; USGS; 2011; Click Here).
Grant of Options
The Company also announces it has granted 4,100,000 incentive stock options (the Options), vesting immediately, in accordance with the terms of the Companys stock option plan. The Options can be exercised into common shares of the Company at a price of $0.89 per share for a period of three years from the date of grant. Directors and officers of the Company received 2,300,000 of the Options granted.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.
Leseranfragen:
MGX is involved in the acquisition and exploration of industrial mineral properties in Western Canada. MGX has the right to acquire a 100% interest in the Driftwood Creek Magnesite Property located in the Golden mining district in southeast British Columbia. In addition to Driftwood Creek, MGX holds a portfolio of magnesite exploration properties in British Columbia. MGX’s wholly owned subsidiary, Manto Gold Corp., is engaged in gold exploration and holds a right to acquire a 100% interest in the 10,000 ha. Fran Gold Property, located 20km southwest of Mount Milligan in central British Columbia.
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Sprache: Deutsch
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