MGX Minerals Expands Utah Petrolithium Project; Acquires Additional Oil and Gas Leases at Paradox Basin
May 2, 2018 - 3:05 AM EDT
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MGX Minerals Expands Utah Petrolithium Project; Acquires Additional Oil and Gas Leases at Paradox Basin
VANCOUVER, British Columbia, May 02, 2018 (GLOBE NEWSWIRE) -- MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (OTCQB:MGXMF) (FSE:1MG) is pleased to announce acquisition of an additional 3,455 acres of oil and gas leases as a result of successful bidding at a recent State of Utah School and Institutional Trust Land Administration (SITLA) auction. The leases are located contiguous to the Company’s unitized 80,380-acre Blueberry Unit (“Blueberry Unit”) and show similar subsurface geological formations and structures favorable for accumulations of oil and gas as well as lithium brine-bearing formations. The newly acquired leases are located within the proposed 3D seismic geophysical survey area, which is scheduled to commence in August. The survey will include approximately 9,000 data points.
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 Company’s lithium and mineral extraction technology. In total MGX controls over two million acres of mineral leases and permits overlying brine-bearing formations throughout North America.
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.
Leasehold Interest in San Juan County, Utah and San Miguel County, Colorado of
MGX MINERALS INC.
As of June 30,2017
Formation
ULTIMATE RECOVERY OIL – MMBO
ULTIMATE RECOVERY GAS – BCF
COC*
LOW
BEST
HIGH
LOW
BEST
HIGH
Paradox Clastics
CB2
41.799
59.498
85.324
33.441
47.602
68.266
0.075
CB3
41.915
60.641
85.833
33.536
48.517
68.671
0.075
CB4
12.766
18.745
26.692
10.213
14.781
21.355
0.075
CB5
33.185
48.065
68.841
26.548
38.453
55.074
0.075
CB6
6.603
9.607
13.874
5.283
7.686
11.100
0.045
CB7
1.892
2.735
3.948
1.514
2.188
3.158
0.032
CB8
19.108
27.525
39.079
15.287
22.022
31.264
0.068
CB9
11.452
16.671
23.711
9.162
13.337
18.970
0.068
CB10
14.565
21.169
30.088
11.652
16.936
24.073
0.068
CB11
2.021
2.929
4.244
1.617
2.344
3.396
0.032
CB12
9.352
13.609
19.525
7.482
10.887
15.620
0.045
CB13
9.333
13.158
19.297
7.468
10.815
15.438
0.045
CB14
3.195
4.621
6.634
2.556
3.697
5.308
0.045
CB15
6.455
9.432
13.633
5.164
7.546
10.908
0.045
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
24.226
34.542
13.358
19.381
27.636
0.068
CB20
2.931
4.253
6.118
2.435
3.402
4.895
0.040
CB21 (Cane Creek)
35.336
51.338
73.971
28.272
41.073
59.177
0.097
CB22
5.635
8.261
11.957
4.508
6.609
9.566
0.045
Leadville
1.000
2.100
4.000
153.000
231.700
341.600
0.066
*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).
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.
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.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
