Current MEI:CA Stock Info

Manitok Energy Inc. (ticker: MEI) announced on July 7th, 2017 that it would undergo a strategic combination with Calgary’s Questfire Energy Corp to establish a new intermediate energy producer. In the combination, Manitok has agreed to acquire all of the outstanding shares of Questfire.

The transaction value is approximately $55.4 million, including an additional $51.8 million used to pay for Questfire’s bank and infrastructure-backed debt, as well as other Questfire obligations.

The combined companies represent over 10,600 BOEPD of production and a 2P-reserves value of 57 MMBOE.

Questfire has land in Lookout Butte and in west-central Alberta—which the Manitok team will develop. The majority of Questfire’s existing production is sourced from its Willesden Green assets in Alberta, close to Manitok’s producing area in the Willesden Green location. For both companies, future development potential exists in the Cardium and Mannville formations in that region.

During the first quarter of 2017, Manitok produced an average of 6,300 BOEPD—63% of which was gas. During the same time, Questfire averaged 4,310 BOEPD—77% of which was gas.

Manitok Energy, Questfire Energy Combine to Create New 10,000 BOEPD Producer

Source: Manitok Energy

Following the combination, the companies will hold a total of 429,000 undeveloped acres.

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