Manitok Energy Inc. successfully acquires conventional Cardium oil opportunity through land sale
May 19, 2011, Calgary, Alberta – Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX-V: MEI) is pleased to provide the following information regarding the successful acquisition of lands at today’s crown land sale.
Land Acquisition Highlights
- Manitok has acquired 5,280 contiguous acres (100% working interest) amongst 10 producing Cardium light oil wells, which comprise part of a 4 million barrel oil trend. The land is also adjacent to the Manitok Stolberg discovery well. Manitok believes that the Cardium oil trend occurs beneath these lands based on regional structural modeling and seismic interpretation. In addition to Cardium prospectivity, the lands have significant stacked liquids rich natural gas potential in deeper zones, including the Mannville. The purchase totaled $3.6 million. Initially, Manitok believes that there are 3 to 5 Cardium light oil drills with more to follow if the first round of drilling is successful. Thrust sheets with Cardium reservoir lie at depths of 900 to 2,700 meters in this area.
- There are also 1 to 2 initial drill locations targeting zones within the Mannville, similar to the Stolberg discovery well, at a depth of about 3,200 meters.
This land purchase increases Manitok’s position in the highly prospective Stolberg area to 22,480 net acres; an increase of 30%. More importantly, it increases the potential number of immediate drills in the area from 3 to over 7, which will allow continuous drill operations to the end of the first quarter of 2012. Manitok expects to drill 1 to 2 Cardium light oil targets before year end, replacing some of the planned drills previously announced in its 2011 capital budget. Manitok expects that the total amount of capital expenditures in 2011, along with the previously announced year end production target, will not change materially. However, the revised drilling portfolio will result in a higher proportion of oil and liquids production and there will be a greater impact on 2012 cash flow as these targets are drilled and put on production throughout next year.
Manitok will continue to focus its efforts on evaluating its entire Stolberg land holdings for oil and liquids rich natural gas potential in various prospective zones. With this land purchase, Manitok is optimistic about increasing its production and reserves significantly in Stolberg over 2011 and 2012.
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian foothills and heavy crude oil in east-central Alberta. Manitok’s corporate strategy is that of being an “early mover” in the exploitation phase of the development life cycle of hydrocarbon reserves in the Canadian foothills. The Corporation will continue to utilize its experience and expertise to develop the untapped conventional sweet oil and liquids-rich natural gas pools in this large and under-exploited region of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com or contact:
Manitok Energy Inc.
Massimo M. Geremia, President and Chief Executive Officer
Tim de Freitas, Vice President, Exploration & Chief Operating Officer
Forward-Looking Information Cautionary Statement
This document 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 as to Manitok's anticipated capital expenditures and operational and drilling plans are forward-looking statements. These forward-looking statements are based upon various assumptions as to future well production rates, well drainage areas, success rates and costs of future well drilling, the availability of capital and future costs and availability 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 and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
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.