CALGARY, Oct. 6, 2017 /CNW/ – Manitok Energy Inc. (“Manitok“) (TSXV: MEI) and Questfire Energy Corp. (“Questfire“) (TSXV: Q.A) are pleased to provide additional information to its press release dated July 5, 2017 where Manitok and Questfire had announced that they had entered into a definitive agreement (the “Arrangement Agreement“) providing for the acquisition by Manitok of all the issued and outstanding common shares of Questfire (the “Questfire Shares“) pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the “Acquisition“). Manitok and Questfire are continuing to progress the transaction towards an anticipated closing on or before October 31, 2017.
Update on Corporate Information
Below is a table of individual corporate information for both Manitok and Questfire:
Manitok |
Questfire |
|||
Shares outstanding(1) |
(MM) |
363.7 |
22.8 |
|
Market capitalization(2) |
($MM) |
$25.5 |
$3.0 |
|
Net debt as at June 30, 2017(3) |
($MM) |
$73.4 |
$52.9 |
|
Average Daily Production for Six months |
(boe/d) |
5,926 (62% gas) |
4,075 (77% gas) |
|
Gross Reserves(4) |
||||
Proved Developed Producing |
(MMboe) |
9.7 (59% gas) |
13.5 (66% gas) |
|
Proved |
(MMboe) |
17.0 (55% gas) |
17.6 (68% gas) |
|
Proved Plus Probable |
(MMboe) |
28.2 (57% gas) |
28.9 (62% gas) |
|
NPV10% Before Tax(4) |
||||
Proved Developed Producing |
($MM) |
$114.9 |
$94.6 |
|
Proved |
($MM) |
$188.3 |
$113.6 |
|
Proved Plus Probable |
($MM) |
$299.8 |
$170.2 |
|
Total Undeveloped Land(5) |
(000 acres) |
336 |
93 |
|
(1) |
Common Shares outstanding for Manitok and Questfire as at September 20, 2017, being the date that Manitok announced that it had completed its acquisition of Corinthian Oil Corp. Manitok’s Common Shares are subject to certain post-closing adjustment pursuant to its transaction with Craft Oil Ltd. and Corinthian Oil Corp. |
(2) |
Assumes Manitok Share price of $0.07 and Questfire Share price of $0.13 as of October 5, 2017, being the closing price of Manitok Shares prior to the date of this press release. |
(3) |
Net debt does not have standardized meanings prescribed by generally accepted accounting principles and therefore should not be considered in isolation. These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Where these measures are used they should be given careful consideration by the reader. Refer to the Non-GAAP Measures paragraph in the Advisories section of this press release. |
(4) |
Gross Reserves (gross interest before royalties) and net present value numbers are based on a reserves report prepared by Sproule Associates Ltd., Manitok’s independent qualified reserves evaluator, dated April 28, 2017 with an effective date of December 31, 2016 (the “Manitok Report”) and the reserves report prepared by GLJ Petroleum Consultants Ltd., Questfire’s independent qualified reserves evaluator, dated March 10, 2017 with an effective date of December 31, 2016 (the “Questfire Report”). The full text of the Manitok Report and the Questfire Report, including full summary of net present values of future revenues associated with the applicable reserves using applicable price forecast, before and after deducting income taxes, and calculated without discount and using discount rates of 5%, 10%, 15% and 20%, are contained, and previously disclosed, in Manitok’s and Questfire’s respective annual information forms for the year ended December 31, 2016, which are available electronically on Manitok’s and Questfire’s profile on SEDAR at www.sedar.com. The Manitok Report and the Questfire Report have been prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Gross reserves are Manitok’s and Questfire’s working interest share before deduction of royalty obligations and without including any royalty interests. Estimates of future net revenues whether discounted or not do not represent fair market value. |
(5) |
The undeveloped land as at June 30, 2017 for Manitok and as at December 31, 2016 for Questfire. |
(6) |
Readers should note that the pro forma numbers and the adjusted-EBITDA numbers presented by Manitok and Questfire in their joint press release dated July 5, 2017 cannot be relied upon on a combined basis due to Manitok and Questfire having different accounting procedures in determining non-GAAP measures. See “Non-GAAP Financial Measures” cautionary language at the end of this press release. |
About Manitok
Manitok is a public oil and gas exploration and development company focusing on Lithic Glauconitic light oil in southeast Alberta and Cardium light oil in west central Alberta. The Corporation utilizes its expertise, combined with the latest recovery techniques, to develop the remaining oil and liquids-rich natural gas pools in its core areas of the Western Canadian Sedimentary Basin.