CALGARY, ALBERTA–(Marketwired – May 2, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) announces its financial and operating results for the year ended December 31, 2015 and provides an operational update.
The full text of Manitok’s year-end results are contained in its audited financial statements as at and for the year ended December 31, 2015, the related management’s discussion and analysis and Manitok’s Annual Information Form for the year ended December 31, 2015 (“AIF“), 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.
- Production in 2015 averaged 4,480 boe/d (49% light oil and liquids) as compared to 4,502 boe/d (57% light oil and liquids) in 2014.
- Recorded funds from operations of $30.4 million in 2015, a 34% decrease over funds from operations of $46.0 million in 2014.
- Operating netback including the realized gain or loss on financial instruments was $25.67/boe in 2015, a 22% decrease over the operating netback of $32.91/boe in 2014.
- Capital expenditures before acquisition and divestitures were $16.1 million as compared to $97.4 million in 2014. Capital expenditures after acquisition and divestitures were $40.6 million as compared to $69.7 million in 2014.
- As at December 31, 2015, Manitok reduced net bank debt by $22.7 million to $53.4 million from $76.1 million as at December 31, 2014.
- On December 30, 2015, Manitok closed the first tranche of a private placement of 23,766,831 common shares (“Common Shares“) in the capital of Manitok issued at a price of $0.13 per Common Share and 35,079,500 Common Shares issued on a “flow-through” basis in respect of Canadian exploration expense under the Income Tax Act (Canada) (“Flow-through Shares“) at a price of $0.15 per Flow-through Share for total net proceeds of $7.5 million, which were received in January 2016. The net cash proceeds from the Common Shares were used to reduce the Corporation’s bank indebtedness and the net cash proceeds from the Flow-through Shares will be used to earn eligible Canadian exploration expenses. At the close of the first tranche of the equity financing, Manitok had 143,936,115 common shares outstanding.
Operational and Financial Summary
|Three months ended December 31||Twelve months ended December 31|
|Average daily production|
|Light oil (bbls/d)||2,002||2,257||2,077||2,508|
|Natural gas (mcf/d)||13,540||10,713||13,607||11,594|
|Average realized sales price|
|Light oil ($/bbl)||47.83||71.96||52.70||92.57|
|Natural gas ($/mcf)||2.73||3.83||2.92||4.93|
|Undeveloped land (end of period)|
|Netback and Cost ($ per boe)|
|Petroleum and natural gas sales||31.01||50.45||34.38||65.61|
|Realized gain (loss) on financial instruments||18.20||6.67||14.58||(2.31||)|
|Operating expenses, net of recoveries||(11.51||)||(7.65||)||(12.21||)||(7.34||)|
|Transportation and marketing expenses||(1.72||)||(3.17||)||(2.16||)||(3.37||)|
|General and administrative expenses, net of recoveries||(3.29||)||(4.59||)||(4.06||)||(4.18||)|
|Interest and financing expenses||(3.72||)||(1.39||)||(3.03||)||(0.76||)|
|Interest and other income||0.02||0.02||0.02||0.02|
|Funds from operations netback(1)||20.69||28.73||18.60||27.99|
|Petroleum and natural gas revenue ($000)||12,720||18,902||56,210||107,822|
|Funds from operations ($000)(1)||8,488||10,766||30,390||45,980|
|Per share – basic ($)(1)||0.10||0.16||0.40||0.66|
|Per share – diluted ($)(1)||0.10||0.16||0.40||0.65|
|Net income (loss) ($000)||(5,258||)||(2,774||)||(27,195||)||(3,587||)|
|Per share – basic ($)||(0.06||)||(0.04||)||(0.36||)||(0.05||)|
|Per share – diluted ($)(2)||(0.06||)||(0.04||)||(0.36||)||(0.05||)|
|Common shares outstanding|
|End of period – basic||143,936,115||65,279,607||143,936,115||65,279,607|
|End of period – diluted||150,334,260||70,588,213||150,334,260||70,588,213|
|Weighted average for the period – basic||85,729,418||65,924,473||76,292,523||69,365,940|
|Weighted average for the period – diluted||85,729,418||66,255,000||76,292,523||70,321,234|
|Capital expenditures ($000)||2,847||26,949||40,597||69,690|
|Adjusted working capital (surplus) deficit ($000)(1)||(8,951||)||22,795||(8,951||)||22,795|
|Drawn on credit facilities ($000)||62,398||53,258||62,398||53,258|
|Net bank debt ($000) (1)||53,447||76,053||53,447||76,053|
|Long-term financial obligations ($000)||14,948||2,500||14,948||2,500|
|Net debt ($000) (1)||68,395||78,553||68,395||78,553|
|1.||Funds from operations, funds from operations per share, funds from operations netback, operating netback, adjusted working capital (surplus) deficit, net bank debt and net debt do 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 Financial Measures section of this press release.|
|2.||The basic and diluted weighted average shares outstanding are the same for periods in which the Corporation records a net loss and when all the outstanding stock options and warrants are anti-dilutive.|
Financial Update Subsequent to Year-End 2015
As at April 30, 2016, Manitok anticipates its net bank debt will be approximately $44 million and its total net debt to be approximately $59 million, which includes $15 million of long term financing, secured only by field facilities, with a remaining term of 7.5 years. The Corporation’s credit facility is currently $49.2 million and is up for a customary review in June 2016. Details of the credit facility are in the 2015 fourth quarter report, a copy of which is available under Manitok’s SEDAR profile at www.sedar.com and also on Manitok’s website at www.manitokenergy.com.
Manitok’s anticipated 2016 oil production, net of royalties, remains fully hedged with a swap of 500 bbls/d of crude oil at $80.15 CAD WTI and collar transactions for 1,000 bbls/d of crude oil from an average price of $68.68 to $86.18 CAD WTI net of the deferred premium.
Manitok anticipates it will begin its 2016 drilling program in the second half of the year, with a minimum of approximately $11 million of drilling and completion spending funded by its funds from operations, credit facility and proceeds from the recently announced equity financing. The Corporation will provide enough flexibility in its capital planning to be able to increase the drilling and completions spending should commodity prices improve over the course of 2016.
Manitok’s production during the first two weeks of April 2016 has averaged approximately 4,447 boe/d (44% oil) based on field estimates. Manitok commenced the Carseland gas plant modifications in mid-April 2016 and expects to complete them before the end of the second quarter of 2016. The modifications will allow Manitok to significantly increase its throughput of liquid rich solution gas associated with the Lithic Glauconitic formation in the Carseland area. The Corporation anticipates the cost of the modifications to be approximately $1.2 million.
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in southeast Alberta and the Canadian foothills. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in both the southeast Alberta and foothills areas of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com.