MGX completes paleontology survey at Paradox basin

Apr 23, 2018

2018-04-23 07:09 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS COMPLETES PALEONTOLOGY SURVEY AT PARADOX BASIN, UTAH PETROLITHIUM PROJECT; ARCHAEOLOGICAL STUDY NEARING COMPLETION

MGX Minerals Inc. has provided an update on the company’s Paradox basin petrolithium project. The project includes the 80,380-acre Blueberry unit, a recently unitized federal oil and gas unit created as part of the project.

After approximately two months of fieldwork crews have completed paleontology surveying and are nearing completion of the archeological survey. To date, all locations have been surveyed out with a total of 163 new sites located along with 12 sites that need redocumenting. Documentation recording for the survey will begin this week and take approximately one week to complete. Pending Bureau of Land Management approval, a seismic survey at the Paradox project is scheduled to commence in early August.

The 110,000-acre Paradox project represents the first large-scale integrated petroleum and lithium exploration project in the United States and is located proximate to the Lisbon Valley oil field within the Paradox basin, which has shown historical brine content as high as 730 parts per million lithium (Superior Oil 88-21P).

The project is being simultaneously explored for oil, gas, lithium and other brine minerals as part of the company’s North and South American exploration, testing and analyses strategy to determine locations for deployment of the company’s lithium and mineral extraction technology inclusive of petrolithium, geothermal and other lithium brine feedstock sources. MGX controls over two million acres of lithium mineral claims throughout North America.

Blueberry unit

MGX is currently earning a 75-per-cent working interest in the project, with the remaining interest primarily controlled by a private Utah corporation. The Paradox partner has been engaged by MGX as subcontracted operator of the project. The project is host to National Instrument 51-101 estimated prospective resources consisting of leasehold and royalty interests in San Juan county, Utah, and Miguel county, Colorado. The estimate was prepared by the Ryder Scott Company LP, an independent qualified reserves evaluator within the meaning of NI 51-101 — Standards of Disclosure for Oil and Gas Activities, 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.

       ESTIMATED GROSS VOLUMES -- UNRISKED PROSPECTIVE (RECOVERABLE) HYDROCARBON RESOURCES
    LEASEHOLD INTEREST IN SAN JUAN COUNTY, UTAH, AND SAN MIGUEL COUNTY, COLORADO, OF MGX MINERALS

As of June 30, 2017
Formation               Ultimate recovery oil -- mmbo        Ultimate recovery gas -- bcf 
                           Low        Best        High         Low        Best        High        COC*
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 equals chance of discovery; 
* Chance of development.

Lisbon Valley and Paradox basin geology

The project is proximate to Lisbon Valley oil field 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 oil field has totalled 51.4 million barrels of oil as of June, 2017. The Paradox basin has been noted by the U.S. Geological Survey as having one of the largest undeveloped oil and gas fields in the United States.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America.

We seek Safe Harbor.

https://www.mgxminerals.com/investors/news/2018.html