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 October 1, 2015 - 5:00 AM EDT
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Manitok Energy Inc. Provides A Corporate Update

CALGARY, ALBERTA--(Marketwired - Oct. 1, 2015) -


Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) wishes to provide this update to inform its shareholders of the proactive steps that the Corporation is taking to withstand the current commodity market conditions.

The significant, unforeseen drop in energy prices has reduced the value of the Corporation's oil and natural gas reserves, impacting the Corporation's credit facilities, as noted in the Corporation's financial results for the second quarter of 2015 released on August 31, 2015. Management is identifying and pursuing alternative debt arrangements, joint venture arrangements, property acquisitions or divestitures, corporate mergers and acquisitions and other recapitalization opportunities and is taking steps to manage its spending and leverage including the implementation of cost reduction and capital management initiatives to satisfy the credit facility repayment requirements.

In addition, management is continuing to work towards resolving the issues at the third party gas processing facility in the Carseland area in order to enable both restricted and behind pipe production to flow to sales. As previously noted in the Corporation's press release dated August 31, 2015, the Corporation has approximately 1,200 to 1,300 boe/d either tied-in and restricted or awaiting tie-in in the Carseland area. The Corporation is not able to produce at full capacity due to the third party gas processing facility not being designed to process the high condensate rich natural gas. The resolution of this problem would enable the Corporation to accelerate development of the Carseland area where the Corporation has been successful drilling 6 wells to date and has identified over 50 lower Mannville drilling locations with 25 targeting the Lithic Glauconitic ("LG") zone.

The Corporation is also advancing its Cardium F pool enhanced oil recovery plan ("EORP") in order to increase the anticipated recovery factor from the current 9% to 10% to between 20% to 24%. The EORP would also provide the Corporation with good production practice status on the Cardium F pool, which would lift the existing production limitations on wells in the reservoir. Advancing the EORP provides the Corporation with a lower cost and risk option to increase its reserves relative to drilling.

Manitok has also identified several recompletion opportunities in suspended wellbores in the Wayne and Stolberg areas, which would provide additional production and reserves at a lower cost relative to drilling. The Corporation anticipates executing these recompletions in the fourth quarter of 2015.

The Corporation is well hedged to the end of 2017. In the second half of 2015, Manitok has hedged 2,000 bbls/d of crude oil at an average price of $89.00/bbl CAD WTI and 16,000 GJs/d of natural gas at an average price of $3.83/GJ, less a deferred premium of $0.35/GJ.

The Corporation has hedged 2,000 bbls/d of crude oil for the entire calendar year of 2016; 1,000 bbls/d is at $79.95/bbl CAD WTI through a swap and 1,000 bbls/d is through option collar transactions with a floor of $68.68/bbl and a ceiling of $86.18/bbl CAD WTI net of the deferred premium. The Corporation has hedged 1,500 bbls/d of crude oil for the entire calendar year 2017; 500 bbls/d is at $79.75/bbl CAD WTI through a swap and 1,000 bbls/d is through option collar transactions with a floor of $68.68/bbl and ceiling of $86.18/bbl CAD WTI net of the deferred premium.

Over the past two years, the Corporation has focused on building a new core area outside of the foothills area in southeast Alberta. In doing so, the Corporation has accumulated over 250,000 acres in the greater Entice and Wayne areas. In this area, the Corporation is focused on the lower Mannville oil development and, in particular, the LG and Basil Quartz formations. Manitok has identified 300 potential drilling locations on these lands and 150 locations are in the LG zone. The Corporation believes the LG play has good economics at a crude oil price of US$50.00/bbl WTI.

About Manitok

Manitok is a public oil and gas exploration and development Corporation focusing on conventional oil and gas reservoirs in the Canadian foothills and southeast Alberta. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in both the foothills and southeast Alberta areas of the Western Canadian Sedimentary Basin.

For further information view our website at

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning planned pursuit of alternative financing arrangement and cost saving and capital management initiatives, anticipated timing of completion of EORP and the anticipated increase in recovery factor upon completion of EORP and the timing of recompletions in suspended wellbores at Wayne and Stolberg.

The forward-looking statements in this press release are based on certain key expectations and assumptions made by Manitok, including expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology, prevailing weather conditions, commodity prices, royalty regimes and exchange rates and the availability of capital, labour and services.

Although Manitok believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Manitok can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions, general business, economic, competitive, political and social uncertainties, capital market conditions and market prices for securities and changes to existing laws and regulations. Certain of these risks are set out in more detail in the AIF, which is available on Manitok's SEDAR profile at

Forward-looking statements are based on estimates and opinions of management of Manitok at the time the statements are presented. Manitok may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but Manitok undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.

Barrels of Oil Equivalent

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated using a conversion ratio of six thousand cubic feet (6 mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Manitok Energy Inc.
Massimo M. Geremia
President & Chief Executive Officer

Source: Marketwired (October 1, 2015 - 5:00 AM EDT)

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