Manitok Energy Inc. Announces the Acquisition of Natural Gas Production and Related Strategic Pipeline System and A Year Over Year First Quarter Production Increase of 39%
Manitok Energy Inc. ("Manitok" or the "Corporation") (TSX VENTURE:MEI) is pleased to announce that it has completed an acquisition from an Alberta based oil and gas company to acquire a 100% working interest in approximately 1.1 Mmcf/d (175 boe/d) of natural gas production, based on field estimates, in the Carseland, Alberta area (the "Acquisition"). In addition to the current production, the Acquisition includes 13 sections of developed P&NG rights to the base of the Belly River formation complete with full 3D seismic coverage, and approximately 170 kilometers of related gathering systems extending over 3 townships. The Corporation paid a cash consideration of $75,000 and assumed discounted abandonment liabilities of approximately $400,000 (10% discount rate) for the Acquisition.
The Acquisition is of value to Manitok in the following ways:
Production and Operations Update
Based on field estimates, Manitok's net production averaged 6,120 boe/d (38% oil and liquids) during the first quarter of 2017 which is a 39% increase over first quarter 2016 average production of 4,407 boe/d (46% oil). Approximately 75 boe/d was lost to unanticipated production down time during the quarter.
The year over year production increase was achieved even though there has not been any additional production added from drilling since December 2016 due to the inability to complete (i.e.: fracture stimulate) the last two horizontal wells that were drilled late in 2016. Manitok was unable to complete the final two wells of the 2016 drilling program due to the lack of availability of frac crews over the winter drilling season. Manitok expects to complete and production test these two wells late in the second quarter of 2017 and, if successful, tie them in at the same time as the three wells discussed in more detail below.
With the acquisition of the additional pipeline infrastructure in the Carseland area, Manitok anticipates it will tie-in the following three horizontal wells late in the second quarter of 2017:
Manitok anticipates adding approximately 800 boe/d (45% oil) of initial production from these three already completed wells and further anticipates additional volumes at Carseland when the two yet to be completed wells referred to above are successfully completed.
Projected Disclosure Timing - Year-End Financials, Year-End Reserves and Quarterly Financials
Manitok expects to announce its year-end financial results and to disclose its year-end reserves information on or about May 1, 2017. First Quarter 2017 financial results will be released no later than May 30, 2017.
Manitok is a public oil and gas exploration and development company focused on Lithic Glauconitic light oil in southeast Alberta and Cardium light oil in west central Alberta. The Corporation utilizes its expertise, combined with the latest recovery techniques, to develop the remaining oil and liquids-rich natural gas pools in its core areas of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com.
SOURCE: Manitok Energy Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.