MGM Energy Acquires Oil and Gas Assets from EnCana for $170M

MGM Energy Corp. acquired certain oil and gas assets held by EnCana Corporation for an aggregate purchase price of approximately $170 million, on May 30, 2007. MGM financed the acquisition with a $178.6 million bought deal financing of 42,726,193 common shares and 11,991,957 flow-through shares. The financing was underwritten by a syndicate co-led by RBC Dominion Securities Inc. and Cormark Securities Inc.

On August 3, 2007, MGM completed a second public financing of 33,000,000 common shares and 6,000,000 flow-through shares for aggregate gross proceeds of approximately $111.4 million. The proceeds from the offering will be used by MGM to fund its exploration and development activities. The financing was underwritten by a syndicate led by Cormark Securities Inc., Peters & Co. Limited and RBC Dominion Securities Inc.

MGM was represented by Osler, Hoskin & Harcourt LLP for both the acquisition and public financings with a team that included Robert Desbarats, Q.C., Janice Buckingham and Josh Doig (energy) on the acquisition and with Robert Lehodey, Q.C., Pierre Magnan, Rummy Basra and Evan Low (corporate) and Nancy Diep (tax) on the financings.

EnCana Corporation was represented by its in-house counsel, Phil Abraham. The underwriters were represented by Bennett Jones LLP with a team that included David Spencer, Will Osler, John Piasta and Lisa Ricketts.


Pierre Magnan Nancy Diep David A. Spencer Rummy K. Basra Janice Buckingham Lisa N. Ricketts John E. Piasta Evan D. Low Robert A. Lehodey Robert P. Desbarats William S. Osler