MGX Minerals (XMG:CNX) Announces N.I. 51-101 Estimated Prospective Oil and Gas Resource for Paradox Basin Petrolithium Project

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MGX Minerals Inc. (XMG:CNX) has released estimated prospective resources attributable to the company's Paradox basin petrolithium project consisting of leasehold and royalty interests in San Juan county, Utah, and San 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 National Instrument 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 NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. Although the salts may not perform well under stimulation or fracking, the Project contains many clastics and is highly pressurized. Management estimates the total cost required to achieve commercial production from the Project to be $8 million based on the expectation of completion of 3D seismic survey and one horizontal well being drilled. The timeline of the Project is five years, with the estimated first date of commercial production being 18 months from the commencement of drilling using vertical and horizontal drilling techniques along with proprietary patented water handling technology as the Project was conceived. Significant economic factors that may affect the Project relate primarily to operational costs, efficiencies and commodity pricing.


1. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

2. Summed volumes in this table are arithmetic summations of various individual reservoirs at the Project and are consequently not statistically correct representations of the range of resources.

3. Ryder Scott used probabilistic methods to conduct the Estimate from a technical standpoint and did not consider the expiration of the leases constituting the Project.

4. Light Crude Oil and Tight Oil are expressed in millions of standard 42-gallon barrels ("MMBO").

5. Conventional Natural Gas and Shale Gas volumes are reported in billions of cubic feet ("BCF").

Geologic Background

Various operators in the region have concluded that the presence of open natural fractures is the primary control on well productivity in the Paradox clastic breaks. Ryder Scott evaluated 21 prospective intervals corresponding to Clastic Breaks 2 through 22. All 21 clastic breaks displayed very consistent stratigraphy across the elevation area. Lithological correlation of the organic shale intervals, anhydrites and salts in and adjacent to the various clastic breaks are relatively even with the various vintages of wells and well log types ranging from gamma ray{A –} neutron logs to sonic logs to modern lithodensity{A –} neutron logs. The clastic breaks display only minor variations in thickness; in contrast, the intervening salt layers can vary significantly. Most of the clastic intervals in the area of interest are confined vertically by salt layers. The presence of salt may inhibit the creation of fractures in the thinner intervals both from natural forces and artificial simulation.


MGX holds a 75% working interest in the Project with the remaining interest primarily controlled by a private Utah corporation (the "Paradox Partner"). The Paradox Partner has been engaged by MGX as subcontracted operator of the Project.

Qualified Person

The technical portions of this press release were prepared and reviewed by Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.

About MGX Minerals

MGX Minerals is a diversified Canadian resource company with interests in petrolithium, magnesium and silicon assets throughout North America. Learn more at

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Symbol Name Price Change % Volume
XMG:CNX MGX Minerals Inc. 0.93 0.02 2.20 185,729


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