CALGARY, ALBERTA–(Marketwired – June 20, 2013) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) is pleased to provide an update on its 2013 drilling program.
The 15th Cardium oil well in Manitok’s Stolberg drilling program was recently completed and production tested. It is the third horizontal Cardium oil well of a four well pad in which Manitok has a 33.3% working interest. The well was completed and tested over approximately a 75 hour test period. Initially, the well swabbed in at a rate of about 533 bbls/d (178 net) of oil with little associated gas, however, during the final 30 hours of the test period, the well free-flowed to surface at 764 bbls/d (255 net) of 40º API oil and 64 boe/d (21 net) of associated sweet gas. This well was unstimulated and artificial lift was not required to bring the oil to surface during the final 30 hour flow period.
The two previously drilled wells on the four well pad, the 13th and 14th Stolberg oil wells, tested at similarly strong rates. During the last 19 hours of a 72 hour test period, the 13th Stolberg oil well free-flowed at an average rate of about 950 bbls/d (316 net) of 42º API oil with 79 boe/d (26 net) of associated gas. The 14th well flowed at an average rate of 745 bbls/d (248 net) of 44° API oil and 103 boe/d (34 net) of associated gas over a 50 hour test period. More information regarding the flow tests of these wells can be found in the Corporation’s April 18, 2013 and May 27, 2013 press releases, which are available on the Manitok website, www.manitokenergy.com. The fourth well of the pad is anticipated to spud this weekend. The wells on the pad are anticipated to be on production early in the fourth quarter.
Manitok released the drilling rig from its first Cabin Creek location. The well, in which Manitok has a 50% working interest, targeted a fractured Cardium reservoir in a foothills structure roughly comparable to that interpreted at Stolberg. The drilling operation went as planned. The deliverability of the reservoir will be tested as soon as the drilling rig has moved and a completions rig can be set up on the lease. Both are dependent on road and lease conditions which have been affected by the recent wet weather in the area. Results will become available as soon as testing has been completed which is anticipated to be within the next three weeks. The drilling rig will move to the Cordel area to drill a horizontal Cardium oil well where Manitok has a 25% working interest.
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian foothills. Manitok’s corporate strategy is that of being an “early mover” in the exploitation phase of the development life cycle of hydrocarbon reserves in the Canadian Foothills. The Corporation will continue to utilize its experience and expertise to develop the untapped conventional sweet oil and liquids-rich natural gas pools in this large and under-exploited region of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com.
This press release contains forward-looking statements. More particularly, this press release contains statements as to Manitok’s operational and drilling plan and the development and growth potential of Manitok‘s properties.
The forward-looking statements in this press release are based on certain key expectations and assumptions made by Manitok, including the operational parameters specifically set out in the press release and expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology, validity of the geological and other technical interpretations that have been performed by Manitok’s technical staff, prevailing weather conditions, commodity prices, royalty regimes and exchange rates and the availability of capital, labour and services.
Although Manitok believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Manitok can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions and changes to existing laws and regulations. Certain of these risks are set out in more detail in Manitok’s current Annual Information Form, which is available on Manitok’s profile profile on the System for Electronic Document Analysis and Retrieval (“SEDAR“) website at www.sedar.com and on the Corporation’s website at www.manitokenergy.com.
Forward-looking information is based on estimates and opinions of management of Manitok at the time the information is presented. Manitok may, as considered necessary in the circumstances, update or revise such forward-looking information, whether as a result of new information, future events or otherwise, but Manitok undertakes no obligation to update or revise any forward-looking information, except as required by applicable securities laws.
The term barrels of oil equivalent (“boe“) may be misleading, particularly if used in isolation. Per boe amounts have been calculated using a conversion ratio of six thousand cubic feet of natural gas (6 mcf) to one barrel of oil (1 bbl). The boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Manitok Energy Inc.
Massimo M. Geremia
President & Chief Executive Officer