VANCOUVER, BRITISH COLUMBIA / July 13, 2017 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) today announced that the Company has received approval from the U.S. Bureau of Land Management (“BLM”) to unitize its oil and gas leases within the Company’s Paradox Basin Petrolithium project in Utah (“Paradox Basin” or the “Project”).
This newly unitized area (the “Unit”) encompasses 80,380.84 acres of Federal, State of Utah, and private lands and provides MGX with a base of operations to conduct petrolithium exploration in Utah. Because of the high percentage of committed oil and gas leases, MGX has retained effective control of operations on committed oil and gas leases within the Unit. The Company currently controls mineral claims inclusive of lithium and other industrial minerals within the overwhelming majority of the Unit and the contiguous Lisbon oilfield.
MGX’s rapid extraction process harvest minerals like lithium and magnesium from petroleum brine- the salt water that accompanies oil and gas to the surface at oil wells (also known as produced water)- that’s normally considered a waste product from oil and gas production. The patented process yields lithium- a crucial mineral for the renewable energy economy- in a matter of days, rather than the months or years required for traditional lithium extraction methods. While extracting minerals, MGX’s technology also treats the produced water for reuse or simple disposal.
Reservoir Study Nearing Completion
The Company also reports that the Ryder Scott Company (“Ryder Scott”) is nearing completion of an independent resource evaluation for oil, gas and water for the Project. MGX expects to receive the report shortly.
Paradox Basin and Lisbon Valley Oilfield
MGX controls 110,000 acres of oil and gas leases and approximately 118,000 acres of largely overlying mineral claims within the Paradox Basin, located in close proximity to the Lisbon Valley oilfield 40 miles southeast of Moab, Utah. Brine content within the Lisbon oilfield have been historically reported as high as 730 ppm lithium (Superior Oil 88-21P). 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).
According to production statistics, as reported by the Utah Department of Natural Resources, Oil, Gas and Mining Division, cumulative lifetime production within Lisbon Valley oilfield, contiguous with the Blueberry Unit, has totaled 51.4 million barrels of oil as of February 2017 (“Oil Production by Field, Utah Department of Natural Resources, Division of Oil, Gas and Mining”; February 2017; Click Here).
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.
MGX may decide to advance its petrolithium projects into production without first establishing mineral resources supported by an independent technical report or completing a feasibility study. A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure. Historically, such projects have a much higher risk of economic or technical failure.