Alvarez & Marsal Canada Inc. (“A&M“), in its capacity as Court appointed Receiver and Manager of Manitok Energy Inc. and Raimount Energy Corp. (collectively “Manitok” or the “Company“), is seeking offers to purchase the assets of Manitok and has retained Peters & Co. Limited (“Peters & Co.“) as its exclusive financial advisor to assist in this process. Confidential information will be made available to parties who execute a confidentiality agreement.
Offers to purchase the assets are subject to the terms and conditions outlined in the Court approved Sales Process with initial proposals due on September 13, 2018. Selected parties will be required to complete final due diligence and execute binding agreements no later than October 5, 2018. Any asset sale will be completed on an “as is, where is” basis and subject to approval of the Court. The Court approved sales process document is available on the Peters & Co. and A&M websites.
Offers for all or selected portions of the assets will be accepted and evaluated.
HIGHLIGHTS
- Established Base Production: Manitok’s assets are producing ~3,600 BOE/d (July 2018 field estimates) with a forecasted base decline rate of ~16%.
- Meaningful Oil Exposure: Base production is ~33% liquids weighted (25% oil; 8% NGLs); oil focused development opportunities exist in the Cardium and Glauconitic formations.
- Expansive Land Base: Manitok has exposure to ~570,000 gross (~380,000 net) acres of land across Alberta.
- Recent Undercapitalization of Asset Base: Manitok’s latest drilling activity was in Q4 2016, resulting in an asset base that reflects established base production and is ready for deployment of development capital. The last drilling activity consisted of six wells in the Carseland area targeting the Glauconitic formation.
- Identified High Impact Drilling Opportunities: Manitok has identified 131 drilling locations, including 52 focused on Cardium oil in Stolberg and Willesden Green and 11 focused on Glauconitic oil in Carlseland and Wayne. Historical Cardium drilling results have produced at peak monthly oil rates in excess of 1,300 Bbl/d at Stolberg and 500 Bbl/d at Willesden Green. Company Glauconitic wells have approached peak monthly oil rates of 300 Bbl/d. Additional opportunities for significant inventory expansion are available through further PrairieSky Fee land acquisitions.
- Light Oil Resource Upside: Lands in the greater Gordondale area are located proximal to recent industry activity targeting the emerging Charlie Lake oil play and established Halfway development.
- Infrastructure in Place: Manitok’s base assets have established infrastructure in place, including >25 MBbl/d of underutilized central oil batteries, which are a major contributor to meaningful third party revenue. Corporate third party revenue in the past 12 months was ~$3.7 MM (June 2017 to May 2018):
- This Sale Process includes all key oil infrastructure at Stolberg, Carseland and Wayne and as part of a transaction there will be no go-forward commitments related to the prior dealings with Stream.
Peters & Co. invites parties interested in acquiring the assets of Manitok to contact any of the Peters & Co. team listed below:
Scott A. Johnston, Principal, A&D at 403-261-2264, sjohnston@petersco.com
Franklin P. Eldridge, Vice President, A&D at 403-261-2287, feldridge@petersco.com
Michael G. Greene, Vice President, Geology at 403-261-2256, mgreene@petersco.com
Benjamin M. Gazdic, Vice President, Corporate Finance at 403-261-2228, bgazdic@petersco.com