Manitok Energy Inc. Announces 2015 Year-End Financial Results And An Operational Update

Manitok Energy Inc. announces its financial and operating results for the year ended December 31, 2015 and provides an operational update.

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, 2015, the related management’s discussion and analysis and Manitok’s Annual Information Form for the year ended December 31, 2015 (“AIF”), 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.

Year-End Results:

Production in 2015 averaged 4,480 boe/d (49% light oil and liquids) as compared to 4,502 boe/d (57% light oil and liquids) in 2014.

Recorded funds from operations of $30.4 million in 2015, a 34% decrease over funds from operations of $46.0 million in 2014.

Operating netback including the realized gain or loss on financial instruments was $25.67/boe in 2015, a 22% decrease over the operating netback of $32.91/boe in 2014.

Capital expenditures before acquisition and divestitures were $16.1 million as compared to $97.4 million in 2014. Capital expenditures after acquisition and divestitures were $40.6 million as compared to $69.7 million in 2014.

As at December 31, 2015, Manitok reduced net bank debt by $22.7 million to $53.4 million from $76.1 million as at December 31, 2014.

On December 30, 2015, Manitok closed the first tranche of a private placement of 23,766,831 common shares (“Common Shares”) in the capital of Manitok issued at a price of $0.13 per Common Share and 35,079,500 Common Shares issued on a “flow-through” basis in respect of Canadian exploration expense under the Income Tax Act (Canada) (“Flow-through Shares”) at a price of $0.15 per Flowthrough Share for total net proceeds of $7.5 million, which were received in January 2016. The net cash proceeds from the Common Shares were used to reduce the Corporation’s bank indebtedness and the net cash proceeds from the Flow-through Shares will be used to earn eligible Canadian exploration expenses. At the close of the first tranche of the equity financing, Manitok had 143,936,115 common shares outstanding.