CALGARY, ALBERTA--(Marketwired - Aug. 31, 2015) -

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Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) announces its financial and operating results for the second quarter of 2015 and an operations update.

Readers are cautioned that as this press release contains only a summary of Manitok's financial and operating results for the second quarter of 2015, it should be read in conjunction with the full text of Manitok's second quarter of 2015 report containing its unaudited condensed interim financial statements as at and for the three and six months ended June 30, 2015 and the related management's discussion and analysis, copies of which are available electronically on Manitok's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and also on Manitok's website at www.manitokenergy.com.

Highlights of Second Quarter 2015 Results

  • Capital expenditures, net of divestitures were approximately $29.0 million, which related primarily to the acquisition of assets in the Wayne area of southeast Alberta with an effective date of April 1, 2015 for total cash consideration of approximately $62.4 million after estimated post-closing adjustments, which was offset with asset divestitures of a production volume royalty, a 5% gross overriding royalty in the Wayne area and facilities in the Wayne area as press released on June 12, 2015.
  • Announced revised terms and additional lands to the lease issuance and drilling commitment agreement with PrairieSky Royalty Ltd., which were previously disclosed in a press release dated May 1, 2015.
  • Closed a facilities financing agreement in the Wayne area for $12.5 million. The effective interest rate over the life of the obligation is 14.5% and the obligation is secured by certain oil batteries in the Wayne area.
  • Closed two tranches of a non-brokered private placement equity financing for the issuance of 12,587,600 common shares of Manitok ("Manitok Shares") at a price of $0.80 per Manitok Share, 917,500 common shares of Manitok on a "flow-through" basis under the Income Tax Act (Canada) in respect of Canadian development expense ("Manitok CDE Flow-through Shares") at a price of $0.85 per Manitok CDE Flow-through Share, and 6,305,077 Manitok Shares on a "flow-through" basis under the Income Tax Act (Canada) in respect of Canadian exploration expense ("Manitok CEE Flow-through Shares") at a price of $0.95 per Manitok CEE Flow-through Share for gross proceeds of $16.8 million (net proceeds - $15.8 million).
  • Production averaged 4,521 boe/d (43% light oil and liquids) which is consistent with production of 4,504 boe/d (51% light oil and liquids) in the first quarter of 2015.
  • Recorded funds from operations of $7.3 million ($0.11 per diluted share) which is an 8% decrease over funds from operations of $7.9 million ($0.12 per diluted share) in the first quarter of 2015.
  • Operating netback was $25.63/boe, which is consistent with the operating netback of $25.48/boe in the first quarter of 2015.
  • Increased net undeveloped land to 442,905 acres as at June 30, 2015, a 62% increase from 272,729 acres as at March 31, 2015.

OPERATIONAL AND FINANCIAL SUMMARY

Three months ended June 30, Six months ended June 30,
2015 2014 2015 2014
OPERATING
Average daily production
Light oil (bbls/d) 1,864 2,695 2,065 2,861
Natural gas (mcf/d) 15,435 11,417 14,249 12,379
NGLs (bbls/d) 84 46 73 72
Total (boe/d) 4,521 4,644 4,513 4,996
Average realized sales price
Light oil ($/bbl) 63.71 103.18 55.55 99.89
Natural gas ($/mcf) 2.89 4.81 2.89 5.72
NGLs ($/bbl) 55.98 110.86 54.68 102.13
Total ($/boe) 37.18 72.80 35.43 72.85