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MGX Minerals unveils prospective resources for Paradox Basin Project

The project consists of leasehold and royalty interests in Utah, and in Colorado.
MGX Minerals unveils prospective resources for Paradox Basin Project
MGX's technology seeks to enhance oil field economics by extracting valuable lithium from brines

MGX Minerals Inc. (CNSX:XMG) has unveiled a prospective resource for its Paradox Basin Petrolithium Project which shows it could contain as much as 30.9mln barrels (net) of tight oil, also known as shale oil.  The report also highlights up to 24.7bln cubic feet of shale gas on a net basis.

MGX released an accompanying table of unrisked, undiscovered hydrocarbons initially in place pointing to Original Oil in Place, at a P50 confidence level, of nearly 6 billion barrels.

The NI 51 -101 estimate was prepared by consultant Ryder Scott Company.

The project consists of leasehold and royalty interests in San Juan county, Utah, and San Miguel county, in Colorado.  MGX holds a 75% working interest.

Summary of risked prospective (recoverable) hydrocarbon resources at MGX's leasehold interests in San County (Utah) and San Miguel County (Colorado)

 

Resources

Light crude oil (millions of barrels of oil)

Conventional natural gas (billions of cubic feet)

Tight oil (millions of barrels of oil)

Shale gas (billions of cubic feet)

Gross

Net

Gross

Net

Gross

Net

Gross

Net

Prospective (high estimate)

0.26

0.2

22.55

16.91

41.17

30.88

32.94

24.71

Prospective (best estimate)

0.14

0.11

15.29

11.47

28.78

21.59

23.02

17.27

Prospective (low estimate)

0.07

0.05

10.1

7.58

19.91

14.93

15.93

11.95


Estimates as at 30 June, 2017

MGX estimates the total cost required to achieve commercial production at $8mln based on a completed 3D seismic survey and one horizontal well being drilled.

The timeline is five years, with the first date of commercial production modeled at 18 months from the start of drilling using vertical and horizontal drilling techniques.

MGX continues to refine the processing technology that would be used to extract lithium from brines contained in the fluid from successful wells. The company thus has the potential to benefit not only from recovery of petroleum products, but also from the extraction and sale of lithium and other valuable elements.

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MGX Minerals Inc. Timeline

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