180 BOEPD, 120,000 acres for $3.1 million in stock

Manitok Energy (ticker: MEI) is acquiring Corinthian Oil Corp. Today’s amalgamation is the most recent in a string of growth moves by the company.

Corinthian Oil currently owns about 120,000 acres of land, 100,000 acres of which has not been developed. Most of this land is located in the Heathdale area of southern Alberta with current production focused on the Colony, Glauconitic and Detrital formations. Manitok believes there are significant further development opportunities in these formations. Corinthian is currently producing about 180 BOEPD, 25% of which is liquids. Total proved plus probable reserves associated with Corinthian’s properties are 1.85 MMBOE.

In addition to the production and land, Manitok will acquire Corinthian’s $2.9 million of net working capital, $2.0 million of cash and not less than $5 million in total tax pools. Manitok will pay a total of $3.1 million in the all-stock transaction.

A copy of the amalgamation agreement will be available under Manitok’s SEDAR profile at www.sedar.com, Manitok said.

Manitok Energy Acquires Corinthian Oil Corp.

Source: Manitok Energy

Multiple transactions completed in recent months.

Manitok has already completed multiple transactions this year, which have boosted its production by 55% YOY. In April Manitok announced the completion of an acquisition in the Caresland, Alberta area, buying 175 BOEPD for $75,000 in cash and $400,000 in liabilities. In May Manitok announced the purchase of Craft Oil, buying 48,000 acres and 430 BOEPD for $6.6 million in stock.

Manitok recently agreed to purchase Questfire Energy, in one of the largest deals the company has completed. The addition of Questfire’s 4,300 BOEPD of production will make Manitok a 10,000 BOEPD producer, with an estimated enterprise value over $150 million.

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