CALGARY, ALBERTA–(Marketwired – Sept. 21, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) announces the initial production rates from a successfully drilled horizontal Lithic Glauconitic (“LG“) exploration well in the Rockyford area pursuant to a farm-out agreement that was previously announced in November 2015, and that it has spud the first horizontal LG well of its 2016 drilling program in the Carseland area.
Through its farm-out agreement in the Rockyford area of southeast Alberta, Manitok participated with its farm-out partner (“Partner“) at a 50% working interest to drill its first horizontal LG well incorporating a monobore drilling plan to reduce capital costs. The total cost to drill and complete the well was approximately $1.3 million which is about a 52% decrease from the $2.7 million Manitok spent for the same operation in 2014.
The Rockyford horizontal LG well was completed in August 2016 and immediately tied-in after two days of production testing. The well has been flowing since late August and has recovered about 60% of the frac fluid used in the completion. In that time, the production rate improved by about 68% as more of the frac fluid was recovered. Over a 17 day period ending September 17, 2016, the well averaged about 396 boe/d (198 net), comprised of 56 bbls/d (28 net) of light oil, 1.8 Mmcf/d (0.9 net) of natural gas and 36 bbls/d (18 net) of NGLs. The well continues to flow back about 79 bbls/d of frac fluid.
Manitok will use the monobore drilling plan for all of its horizontal LG wells in its 2016 drilling program. Manitok spud its first horizontal LG well in the Carseland area on September 20, 2016. The first two horizontal LG wells of its 2016 drilling program are planned for the Carseland area and a third well will be the first horizontal LG well drilled in the Wayne area, all at a 100% working interest. The first three horizontal LG wells of the 2016 drilling program are anticipated to be completed and on production in the fourth quarter of 2016. In addition, it is anticipated that Manitok and its Partner will drill offsetting LG locations to the above-noted successful Rockyford well before the end of 2016.
The successful results of the first horizontal LG well in Rockyford builds on the initial success achieved at Carseland in late 2014, where the first two horizontal LG wells combined, have cumulatively produced over 350,000 boe to date. Based on field estimates, the two LG wells are currently flowing at a combined rate of about 900 boe/d with a 100% working interest. Based on production to date from the two areas, 3D seismic and well log data, the Corporation believes there are about 28 Carseland horizontal LG drilling locations, at a 100% working interest, and about 23 Rockyford horizontal LG drilling locations, where Manitok has an option to participate up to a 50% working interest in each well through its farm-out agreement. Manitok believes there are a total of approximately 150 horizontal LG drilling locations on its lands in southeast Alberta.
Massimo Geremia, President and CEO of Manitok, states, “The operational success of the monobore drilling plan in the Lithic Glauc play has significant implications to the value of Manitok’s future drilling locations and reserves in southeast Alberta. Reducing the capital costs by more than half from 2014 levels allows the wells to be drilled economically at current commodity prices. Drilling the Lithic Glauc wells using the monobore drilling plan is a ‘game-changer’ in regards to finding and development costs, which will lead to greater value creation through the drill-bit for Manitok shareholders.”
Manitok is a public oil and gas exploration and development company focused on conventional Mannville and Cardium oil and gas reservoirs in both southeast, and west central Alberta. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in its core areas of the Western Canadian Sedimentary Basin.
View our website at www.manitokenergy.com.