CALGARY, ALBERTA–(Marketwired – Sept. 26, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) announces an update on corporate production rates.
Based on field estimates, Manitok’s production averaged approximately 4,825 boe/d from September 1, 2016 to September 19, 2016, with approximately 40% being light oil and NGLs. This represents an increase of about 35% from average daily production reported in the second quarter of 2016 and the highest production rate achieved by Manitok since early in 2014.
The increased daily production volumes are the result of shut-in volumes being placed back on production at Stolberg and Wayne, the removal of temporary pipeline restrictions experienced in Stolberg over the summer, and increased production volumes in Carseland due to gas plant improvements and removing restrictions on certain wells. In addition to the production increases at Carseland, Stolberg and Wayne, Manitok has added incremental production volumes at Rockyford as a result of participating at a 50% working interest level on a successful Lithic Glauc (“LG“) discovery well and on a carried working interest of 5% on several of the initial Basal Quartz (“BQ“) wells drilled by its farm-out partner on lands under a farm-out agreement.
It is worth noting during the same period of September 1st to 19th, the Corporation experienced production down time at Stolberg which equated to about 300 boe/d (90% gas) and currently has two shut-in BQ wells in Carseland that it intends to tie-in early in 2017, once the 2016 drilling program at Carseland is completed. Manitok expects that the Carseland BQ wells will come on-stream at an initial rate of approximately 500 boe/d.
Manitok is currently drilling a horizontal LG well at Carseland, which will be followed by a second Carseland horizontal LG well, and the first horizontal LG well drilled in the Wayne area. Manitok anticipates it will participate in at least one horizontal LG well (0.5 net) in Rockyford with its farm-out partner in October. These four (3.5 net) wells will be tied in and add incremental production volumes during the fourth quarter.
All of the horizontal LG wells are anticipated to be drilled using a monobore drilling plan which will significantly reduce drilling costs per well and increase the anticipated return on capital. The monobore drilling plan has been used by industry in progressively deeper zones since Manitok last drilled in 2014. Given its track record, the risk-reward ratio made it favorable to utilize in the Corporation’s 2016 drilling program and in the future.
Manitok has endeavored to maintain a balanced approach towards production, and drilling opportunities, between light oil and natural gas. The prices for both commodities reached multi-year lows in the first 2 quarters of 2016 which negatively impacted funds from operations. The commodity price environment has rebounded from the multi-year lows and Manitok is now in a position to benefit from both increased production volumes and increasing commodity prices.
Massimo Geremia, President & CEO of Manitok, states, “Everyone at Manitok is excited about the potential for future production growth with fewer restrictions at both Stolberg and Carseland. We are especially excited to be drilling in Carseland again and testing the Wayne area given our recent success at Rockyford.”
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.