CALGARY, Sept. 20, 2017 /CNW/ – Manitok Energy Inc. (“Manitok“) (TSX-V: MEI) is pleased to announce that it has completed its previously announced three-cornered amalgamation pursuant to an amalgamation agreement (the “Amalgamation Agreement“) dated effective September 12, 2017 among the Corporation, Corinthian Oil Corp. (“Corinthian“) and 2065718 Alberta Inc. (“Acquireco“), a wholly owned subsidiary of Manitok (the “Transaction“).
Pursuant to the Transaction, Manitok has acquired, through Acquireco, approximately 180 boe/d of production (25% oil and liquids) with related oil battery and gas gathering system, as well as over 120,000 acres of land including 100,000 acres of net undeveloped land primarily located in the Heathdale area of southern Alberta. The production is mainly from the Colony, Glauconitic and Detrital formations, on which Manitok has identified additional exploitation opportunities. In addition to the production and land, there is approximately $2.9 million of net working capital, including $2.0 million of cash, which will increase Manitok’s liquidity, and not less than $5.0 million in total tax pools. Based on the engineering report effective December 31, 2016 prepared by GLJ Petroleum Consultants Ltd., independent qualified reserves evaluator of Corinthian, the total proved plus probable reserves associated with the Heathdale property is approximately 1.85 million boe (24% oil and liquids).
Under the Transaction, Manitok acquired through Acquireco, all of the issued and outstanding common shares of Corinthian (“Corinthian Shares“) in exchange for common shares of Manitok (“Manitok Shares“). Acquireco and Corinthian amalgamated under the name “Corinthian Oil Corp.” pursuant to the provisions of the Business Corporations Act (Alberta) and will operate as a wholly owned subsidiary of Manitok. In connection with the Transaction, an aggregate of 43,979,927 Manitok Shares were issued to the Corinthian Shareholders at a deemed price of $0.070486665 per Manitok Share. For further details regarding the Transaction please refer to the Corporation’s press release dated September 13, 2017.
A copy of the Amalgamation Agreement will be available under Manitok’s SEDAR profile at www.sedar.com.
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.