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MGM Energy Corp

Shell eyes Mackenzie Valley Canol shale oil play

HOUSTON, June 29 06/29/2012 By OGJ editors

Shell Canada Energy has taken a farmout from MGM Energy Corp., Calgary, to earn an interest in MGM’s 466B exploration license in the Central Mackenzie Valley of Canada’s Northwest Territories by funding the drilling of one or two wells in the Devonian Canol shale oil play.

Shell has the option to terminate the farmout if MGM doesn’t receive timely regulatory approval to drill the first well but will earn 75% interest in EL466B and become operator if it drills and completes both wells.

Shell will earn 37.5% interest after drilling a vertical well, which could be drilled as early as the winters of 2012-13 or 2013-14. The second well would be a horizontal penetration. read more

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