Manitok has successfully drilled five (100% working interest) heavy oil wells at Swimming
October 13, 2010, Calgary, Alberta – Manitok Energy Inc. ("Manitok") (TSX-V: MEI) is pleased to provide the following update on its drilling program and other operations in the Swimming area, 80 kilometers west of Lloydminster, Alberta.
Manitok has successfully drilled five (100% working interest) heavy oil wells at Swimming. The five wells were all cased with multi-zone heavy oil potential in the Mannville group. The wells in this program offset a new pool discovery previously made by Manitok in 2007. The initial discovery well averaged 58 barrels of heavy oil per day in the first three months of production and is still producing today at a rate of approximately 23 barrels of heavy oil per day. The discovery well has produced approximately 36,000 barrels of heavy oil to date. Manitok has based its project economics on expected initial production rates from the five wells, on a combined basis, of approximately 150 barrels of heavy oil per day. While still preliminary, the data obtained to date is encouraging in terms of being able to meet that expectation. Both completion and equipping operations on the five wells are underway. Assuming reasonably dry weather, the five wells are expected to be on production in November.
With down spacing already in place over the existing pool, Manitok currently has over 15 development drilling locations on its lands. Manitok will acquire further seismic data on its additional 6,600 acres (100% working interest) of land in the area over the fourth quarter of this year. The capital required for the seismic program, which includes both 2D and 3D data, is expected to be about $450,000. The data will be evaluated by Manitok to determine if there are further drilling opportunities on its existing lands in the area.
Manitok is a public oil and gas exploration and development company focused on conventional oil and gas in the Canadian foothills and heavy crude oil in east-central Alberta.
For further information contact:
Manitok Energy Inc.
Massimo M. Geremia, President and Chief Executive Officer
Or view our website at www.manitokenergy.com
Forward-looking Information Cautionary Statement
This press release contains forward-looking statements regarding the business and operations of Manitok. All statements other than statements of historical fact contained herein are forward-looking statements under applicable securities laws. In particular, statements in this press release regarding production and capital requirements are forward-looking statements. These forward-looking statements are based upon various assumptions made by Manitok, including assumptions relating to future well production rates, the performance of existing wells, success rates of future well drilling, the availability of capital to undertake planned activities and the availability and cost of labour and services. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. In addition, all such forward-looking statements necessarily involve risks associated with oil and gas exploration, production, marketing and transportation, such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. The forward-looking statements contained herein are made as of the date hereof. Manitok undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.