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Manitok Energy Inc. Announces 2013 Year-End Financial Results and Adoption of Advance Notice By-Law

Manitok Energy Inc. Announces 2013 Year-End Financial Results and Adoption of 
Advance Notice By-Law 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Manitok Energy Inc. 
TSX VENTURE SYMBOL:  MEI 
APRIL 29, 2014 
Manitok Energy Inc. Announces 2013 Year-End Financial Results and Adoption of
Advance Notice By-Law 
CALGARY, ALBERTA--(Marketwired - April 29, 2014) -  
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA. 
Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX
VENTURE:MEI) announces its financial and operating results for the year ended
December 31, 2013.  
The full text of Manitok's year-end results are contained in its audited
financial statements as at and for the year ended December 31, 2013, the
related management's discussion and analysis and Manitok's Annual
Information Form for the year ended December 31, 2013, copies of which are
available electronically on Manitok's profile on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com and also
on Manitok's website at www.manitokenergy.com.  
Operational & Financial Highlights: 
/T/ 
--  Increased average annual production by 72% from 2,389 boe/d (36% light 
oil and liquids) in 2012 to 4,113 boe/d (52% light oil and liquids) in 
2013; increased average fourth quarter production by 62% from 3,078 
boe/d (55% light oil and liquids) in the fourth quarter of 2012 to 4,989 
boe/d (57% light oil and liquids) in the fourth quarter of 2013. 
--  Increased the annual light oil and liquids weighting 44% over the light 
oil and liquids weighting in 2012. 
--  Recorded average annual production per share growth of 54% and funds 
from operations per share growth of 96% in 2013 when compared to 2012. 
--  Increased annual funds from operations by 118% from $19.1 million ($0.29 
per diluted share) in 2012 to $41.6 million ($0.57 per diluted share) in 
2013; increased funds from operations by 85% from $7.7 million ($0.11 
per diluted share) in the fourth quarter of 2012 to $14.1 million ($0.19 
per diluted share) in the fourth quarter of 2013. Increased the 
operating netback before the realized gain or loss on financial 
instruments by 29% from $25.59/boe to $33.07/boe.  
--  Increased net income to $3.6 million ($0.05 per basic share) in 2013 as 
compared to a net loss of $2.7 million ($0.04 loss per basic share) in 
2012.  
--  Capital expenditures in 2013 were approximately $79.4 million, net of 
$3.4 million in divestitures. This included drilling 16 gross (9.8 net) 
wells for about $46.5 million, $9.0 million on equipment and facilities 
and closing a Lease Issuance and Drilling Commitment Agreement with 
Encana Corporation, whereby Manitok acquired petroleum and natural gas 
leases covering 38,757 net hectares (96,893 net acres) in the Entice 
area of southeast Alberta for a total cash consideration of 
approximately $19.7 million, which included a bonus payment, lease 
rental costs and transaction fees.  
--  At December 31, 2013, net debt was approximately $32.5 million. 
--  Increased net undeveloped land to 323,907 acres as at December 31, 2013, 
an 81% increase from 178,938 acres as at December 31, 2012. 
/T/ 
Operational and Financial Summary 
/T/ 
---------------------------------------------------------------------------- 
Three Months Ended     Twelve Months Ended   
December 31             December 31  
2013        2012        2013        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating                                                                   
Average daily production                                                    
  Natural gas (mcf/d)            12,868       8,344      11,782       8,556 
  Light oil (bbls/d)              2,755       1,618       2,065         793 
  Heavy oil (bbls/d)                  -           -           -          94 
  NGLs (bbls/d)                      89          69          84          76 
----------------------------------------------------------------------------
  Total (boe/d)                   4,989       3,078       4,113       2,389 
----------------------------------------------------------------------------
Average realized sales price                                                
  Natural gas ($/mcf)              4.03        3.64        3.61        2.62 
  Light oil ($/bbl)               82.30       82.53       89.75       82.87 
  Heavy oil ($/bbl)                   -           -           -       76.29 
  NGLs ($/bbl)                    76.48       77.71       78.07       77.60 
----------------------------------------------------------------------------
  Total ($/boe)                   57.21       54.99       57.00       42.34 
----------------------------------------------------------------------------
Undeveloped Land (end of                                                    
 period)                                                                    
  Gross (acres)                 375,793     231,144     375,793     231,144 
  Net (acres)                   323,907     178,938     323,907     178,938 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Netback and Cost                                                            
($/boe)                                                                     
  Petroleum and natural gas                                                  
sales                          57.21       54.99       57.00       42.34 
  Realized gain (loss) on                                                    
financial instruments          (0.48)       3.37       (1.27)       2.03 
  Royalty income                   0.01        0.43        0.25        0.38 
  Royalty expenses               (10.18)     (11.22)     (13.69)      (5.60)
  Operating expenses, net of                                                 
recoveries                     (8.83)     (10.48)      (7.62)      (9.14)
  Transportation and                                                         
marketing expenses             (3.10)      (3.17)      (2.87)      (2.39)
----------------------------------------------------------------------------
Operating netback(1)              34.63       33.92       31.80       27.62 
  Administrative expenses,                                                   
net of recoveries              (3.53)      (6.79)      (3.82)      (5.65)
  Interest expenses               (0.37)      (0.23)      (0.38)      (0.19)
  Interest and other income        0.03        0.10        0.07        0.04 
----------------------------------------------------------------------------
Funds from operations                                                       
 netback(1)                       30.76       27.00       27.67       21.82 
----------------------------------------------------------------------------
Financial                                                                   
Petroleum and natural gas                                                   
 revenue ($000)                  26,260      15,696      85,950      37,349 
----------------------------------------------------------------------------
Funds from operations                                                       
 ($000)(1)                       14,117       7,651      41,554      19,081 
  Per share - basic ($)(1)         0.19        0.11        0.59        0.30 
  Per share - diluted ($)(1)       0.19        0.11        0.57        0.29 
----------------------------------------------------------------------------
Net income (loss) ($000)         (1,417)     (2,157)      3,615      (2,657)
  Per share - basic ($)           (0.02)      (0.03)       0.05       (0.04)
  Per share - diluted ($)(2)      (0.02)      (0.03)       0.05       (0.04)
----------------------------------------------------------------------------
Common shares outstanding                                                   
  End of period - basic      74,492,340  70,339,014  74,492,340  70,339,014 
  End of period - diluted    80,099,780  75,122,847  80,099,780  75,122,847 
  Weighted average for the                                                   
period - basic            72,638,096  68,908,419  70,654,634  63,567,788 
  Weighted average for the                                                   
period - diluted          74,371,392  70,986,540  72,596,161  64,702,325 
----------------------------------------------------------------------------
Capital expenditures, net of                                                
 divestitures ($000)             44,236      13,422      79,365      36,965 
Working capital deficit                                                     
 ($000)(1)                       16,277       6,861      16,277       6,861 
Drawn on credit facilities                                                  
 ($000)                          16,237       3,101      16,237       3,101 
Total net debt ($000)(1)         32,514       9,962      32,514       9,962 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1)   Funds from operations, funds from operations per share, funds from     
operations netback, operating netback, working capital deficit and net 
debt do not have standardized meanings prescribed by GAAP and          
therefore should not be considered in isolation. These reported        
amounts and their underlying calculations are not necessarily          
comparable or calculated in an identical manner to a similarly titled  
measure of other companies where similar terminology is used. Where    
these measures are used they should be given careful consideration by  
the reader. Refer to the Non-GAAP Financial Measures section of this   
press release.                                                        
(2)   The basic and diluted weighted average shares outstanding are the same 
for years in which the Corporation records a net loss.                 
/T/ 
2014 Guidance 
The 2014 guidance remains unchanged from the Corporation's press release
dated February 27, 2014, a copy of which is available under Manitok's
profile on SEDAR at www.sedar.com.  
Advance Notice By-Law Amendment 
The Corporation also announces board approval of an amendment to its by-laws to
include advance notice provisions (the "By-Law Amendment"), the
purpose of which is to require that advance notice be provided to the
Corporation in circumstances in which nominations of persons for election to
the board of directors of the Corporation are made by shareholders other than
pursuant to the requisition of a meeting or a shareholder proposal in
accordance with the Business Corporations Act (Alberta). 
The By-Law Amendment fixes a deadline by which shareholders must provide notice
to the Corporation of nominations for election to the board, and sets out the
information that a shareholder must include in the notice for it to be valid.
The By-Law Amendment is in effect on the date hereof. In accordance with the
Business Corporations Act (Alberta), the amendment will be submitted to the
shareholders for confirmation at the Corporation's upcoming annual
shareholders' meeting. 
In the case of an annual general meeting of shareholders, notice to the
Corporation must be made not less than 30 nor more than 65 days prior to the
date of the annual general meeting of shareholders; provided, however, that in
the event that the annual general meeting of shareholders is to be held on a
date that is less than 50 days after the date (the "Notice Date") on
which the first public announcement of the date of the annual meeting was made,
notice by the nominating shareholder may be made not later than the close of
business on the 10th day following the Notice Date.  
In the case of a special meeting (which is not also an annual general meeting)
of shareholders called for the purpose of electing directors (whether or not
called for other purposes), notice to the Corporation must be made not later
than the close of business on the 15th day following the day on which the first
public announcement of the date of the special meeting of shareholders was
made. 
The By-Law Amendment, containing the full details of the advance notice
provisions, is available under the Corporation's profile on SEDAR at
www.sedar.com.  
About Manitok 
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.  
Forward-looking Statements 
This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the shareholder approval of the
By-Law Amendment. The forward-looking statements in this press release are
based on certain key expectations and assumptions made by Manitok, including
expectations and assumptions concerning, but are not limited to, the continued
market acceptance of advance notice by-laws.  
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. 
Non-GAAP Financial Measures 
This press release contains references to measures used in the oil and natural
gas industry such as "funds from operations", "funds from
operations netback", "funds from operations per share",
"operating netback", "working capital deficit", and
"net debt". These measures do not have standardized meanings
prescribed by generally accepted accounting principles ("GAAP") an,
therefore should not be considered in isolation. These reported amounts and
their underlying calculations are not necessarily comparable or calculated in
an identical manner to a similarly titled measure of other companies where
similar terminology is used. Where these measures are used they should be given
careful consideration by the reader. These measures have been described and
presented in this press release in order to provide shareholders and potential
investors with additional information regarding the Corporation's
liquidity and its ability to generate funds to finance its operations.  
Funds from operations should not be considered an alternative to, or more
meaningful than, cash provided by operating, investing and financing activities
or net earnings as determined in accordance with GAAP, as an indicator of
Manitok's performance or liquidity. Funds from operations is used by
Manitok to evaluate operating results and Manitok's ability to generate
cash flow to fund capital expenditures and repay indebtedness. Funds from
operations or funds from operation netback denotes cash flow from operating
activities as it appears on the Corporation's Statement of Cash Flows
before decommissioning expenditures and changes in non-cash operating working
capital. Funds from operations or funds from operations netback is also derived
from net income (loss) plus non-cash items including deferred income tax
expense, depletion and depreciation expense, exploration and evaluation
expense, impairment expense, stock-based compensation expense, accretion
expense, acquisition-related expenses, unrealized gains or losses on financial
instruments and gains or losses on asset divestitures. Funds from operations
netback is calculated on a per boe basis and funds from operations per share is
calculated as funds from operations divided by the weighted average number of
common shares outstanding. Operating netback denotes petroleum and natural gas
revenue and realized gain (loss) on financial instruments less royalty
expenses, operating expenses and transportation and marketing expenses
calculated on a per boe basis. Working capital deficit includes current assets
less current liabilities excluding the current portion of the amount drawn on
the credit facilities, the fair value of financial instruments and the deferred
premium on financial instruments. Manitok uses net debt as a measure to assess
its financial position. Net debt includes current assets less current
liabilities excluding the current portion of the fair value of financial
instruments and the deferred premium on financial instruments.  
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. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Manitok Energy Inc.
Massimo M. Geremia
President & Chief Executive Officer
403-984-1751
mass@manitok.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- Apr/29/2014 11:00 GMT
 
 
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