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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.
About Manitok
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.
Forward-looking Information Cautionary Statement
This press release contains forward-looking statements. More
particularly, this press release contains statements concerning the
anticipated benefits of the Transaction to Manitok.
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 prevailing
market conditions, commodity prices, and the availability of
capital.
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 adverse market conditions, the
inability of Manitok to complete the Transaction at all or on the
terms announced, not obtaining the required court, shareholder and
regulatory approvals and the 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. More
information about certain of these risks are set out in the
documents filed from time to time with the Canadian securities
regulatory authorities, available on Manitok's SEDAR profiles at
www.sedar.com.
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.
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.
SOURCE Manitok Energy Inc.