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    magnesium investing

    MGX Minerals Acquires Additional 10,000 Acres of Oil and Gas Rights at Paradox Basin, Utah Petrolithium Project

    Anwesha Sengupta
    May. 08, 2018 06:30AM PST
    Critical Metals
    CSE:XMG

    MGX Minerals (CSE:XMG) is pleased to announce it has acquired an additional 10,331.32 acres of Oil and Gas Leases (“Leases”) located within the Company’s unitized 80,380-acre Blueberry Unit (“Blueberry Unit”).

    MGX Minerals (CSE:XMG) is pleased to announce it has acquired an additional 10,331.32 acres of Oil and Gas Leases (“Leases”) located within the Company’s 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 Company’s 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 Company’s 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

    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).

    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 Company’s 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.

    Click here to connect with MGX Minerals (CSE:XMG) for an Investor Presentation.

    Source: www.accesswire.com

    canadian securities exchangeoil gasmagnesium investingcanadian oil and gascse:xmgmgx mineralsextraction technologycanadian oilmgx minerals inc
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