Manitok is pleased to provide an operational update at Entice and Cordel-Stolberg.
September 18, 2014, Calgary, Alberta – Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX-V: MEI) is pleased to provide an operational update at Entice and Cordel-Stolberg.
As noted in the August 28, 2014 press release, Manitok has drilled a horizontal well at 3-28-22-25W4, testing the middle Basal Quartz ("BQ") formation in the southern end of the Entice field. This is the second well of a planned 10 well horizontal drilling program at Entice where Manitok has a 100% working interest. The well was completed utilizing multi-stage fracturing technology. A 15 stage fracture completion was successfully executed, and the well began flowing on its own. During the production test, the well flowed for a total of 3.3 days at an average rate of 135 bbls/d of 30° API oil and 420 mcf/d of natural gas for a total rate of 205 boe/d. The flowing pressures were stable throughout the production test. The cost to drill and complete the well was approximately $2.9 million.
The results from the above-noted well provides Manitok with a significant number of potential development drilling locations. Manitok has interpreted the depositional environment of the BQ pool as shallow marine sands, as opposed to channel sands. The formation has significant aerial extent which is supported by log data, rock samples, seismic data and oil shows throughout the mapped area. There are 5 to 7 immediate offset horizontal drilling locations and Manitok believes the opportunity could cover approximately 10 to 12 sections of prospective land and would likely require four wells per section to optimize primary recovery.
The 3-28-22-25W4 well is near the previously announced 15-32-22-25W4 Lithic Glauconitic ("Glauc") well, which flowed at an average rate of 761 boe/d for approximately 6 days which included 328 bbls/d of 40° API oil and 2.6 Mmcf/d of natural gas. The wells on both pads are expected to be tied-in and on production in the fourth quarter of 2014. With the success of the first two wells of the program, Manitok now has 10 to 12 immediate offset horizontal well locations at the south end of Entice which could increase significantly in time as each trend is further developed.
Manitok has also drilled the 3-9-23-25W4 horizontal well in Entice, testing a lower BQ formation in the southern end of the land base and expects to commence the multi-stage fracture completion within the next two weeks. The drilling rig has moved to a Glauc location offsetting the previously announced successful 15-32-22-25W4 Glauc well. This rig will continue to drill wells in both the successful Glauc and BQ new pool discoveries at the south end of Entice until spring breakup in early 2015.
Given the encouraging results to date at Entice, Manitok has mobilized a second rig to drill a horizontal Glauc well, with similar log and seismic characteristics as the successful 15-32-22-25W4 Glauc well which should commence within the next week. This rig will follow up with other horizontal Glauc and BQ wells in both the central and north portions of the Entice land base including a horizontal offset to the successful 6-16-28-24W4 vertical BQ well. The second rig will test up to five different oil pools (two Glauc pools and three BQ pools) before spring breakup in early 2015.
Manitok is currently drilling a forelimb well, 7-12-42-15W5, in the southern portion of the Cordel-Stolberg field. Results should be available in the next 2 to 3 weeks. Manitok is currently planning to drill another Mannville gas well and up to 2 (0.6 net) Cardium oil wells prior to year end at Stolberg.
Well tie-in and facility work are moving forward as expected and the behind pipe production at Stolberg is anticipated to be on stream early in the fourth quarter of 2014 as previously stated in Manitok's August 28, 2014 press release. In addition, Manitok is continuing to work with third party operators to maximize potential gas transportation volumes as soon as possible in order to accommodate further optimization of Manitok's natural gas production.
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian foothills and southeast Alberta. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in both the foothills and southeast Alberta areas 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 & Chief Executive Officer
This press release contains forward-looking statements. More particularly, this press release contains statements concerning planned exploration and development activities, the development and growth potential of Manitok's properties and planned maximization of potential gas transportation volumes by working with third party operators.
The forward-looking statements in this press release are based on certain key expectations and assumptions made by Manitok, including expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology, prevailing weather conditions, commodity prices, royalty regimes and exchange rates and the availability of capital, labour and services.
Although Manitok believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Manitok can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions, general business, economic, competitive, political and social uncertainties, capital market conditions and market prices for securities and changes to existing laws and regulations. Certain of these risks are set out in more detail in Manitok's current Annual Information Form, which is available on Manitok's SEDAR profile at www.sedar.com.
Forward-looking statements are based on estimates and opinions of management of Manitok at the time the statements are presented. Manitok may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but Manitok undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
Any references in this press release to initial and/or final raw test or production rates and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily determinative of the rates at which such wells will commence production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Corporation. The initial production rate may be estimated based on other third party estimates or limited data available at this time. In all cases in this press release, initial production or test are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts have been calculated using a conversion ratio of six thousand cubic feet (6 mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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