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Manitok Energy Inc (TSXV:MEI)

Summary

Manitok Energy Inc. is a TSX Venture Exchange listed oil and gas exploration and development company based in Calgary, Canada. The company is focused on developing the untapped conventional oil and gas reservoirs in the Canadian Foothills and Southeast Alberta.

Market Overview

$0.08 (-5.880%)
Vol 344,483.00
10 Days Avg Vol 720,071.22
3 Mo Avg Vol 356,478.04
52 Wk Lo/Hi $0.06 - $0.23
YTD Price Gain % 0%
12 Wks Moving Avg 0.099722
200 Days Moving Avg 0.132375
Market Cap 19,711,487

Company Background

Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian Foothills along with crude oil in Southeast Alberta. The lower risk profile and higher operating netbacks of crude oil in Southeast Alberta are a great compliment to the high impact growth opportunities of both oil and gas present in the Foothills. The combination of the two provide Manitok with a more stable growth platform which is less sensitive to the wide swings of the natural gas price cycle.

Highlights

  • Manitok completed a restructuring - reducing the $75M bank debt to $38M over last 18 months.
  • Average Q1 2017 production at 6,300 boe/d (37% oil and NGLs), a 43% year over year increase from Q1 2016.
  • Total Proved reserves growth of 71% at year-end.
  • Stock undervalued at $0.10 per share with Proved Plus Probable Net Asset Value of about $0.70/share.
  • Core areas are operated with high working interest (57%-100%) and infrastructure ownership.
  • Lithic Glauc oil well drilling & completions cost reduced from $3.3 million per well to $1.7 million per well.
  • Upgrade of Carseland gas plant provides capacity for up to 2,200 boe/d; production in the area increased from 500 boe/d in Q1 2016 to about ~1,900 boe/d in December 2016.

Share Structure

As of May, 2017
Shares Issued 262,819,832
Warrants 46,322,608
Options 21,399,100
Fully Diluted 330,541,540

Other Information

Projects:

Carseland LG Oil

  • 100% working interest and operator.
  • Q4 Drilling Program, utilizing Monobore drilling, achieved 55 - 60% lower costs per meter drilled than in 2014.
  • Gas plant ownership, and upgrade to NGLs handling, has reduced processing costs from over $1.00/mcf to below $0.50/mcf and increased realized liquids yield from 10 bbl/mmcf to 28 bbl/mmcf.
  • 5 already drilled horizontal wells to be tied in during the 3rd quarter; Management believes the wells combined will contribute between 1.000 and 1,200 boe/d of initial production depending on the results of the last 2 well completions.

Wayne LG Oil Play

  • Manitok operated 1-20 Wayne oil battery with gas processing facility; 100% working interest.
  • First HZ well test successful; 3D seismic and well control confirm over 50 nearby drilling locations.
  • Development plan to upgrade refrigeration capacity at Wayne gas plant for full scale development which will decrease operating costs at Wayne significantly, as it did in Carseland.
  • 15-19-28-21W4 well was drilled to a total measured depth of 3206m (lateral length of 1734m) in 7 days for ~$750,000 and completed for $650,000; The well tested at 366 boe/d.

Management Profiles

Massimo M. Geremia

President & CEO

Mr. M. Geremia was the founder of Manitok in 2005, Mr. M. Geremia has over 27 years of experience in Oil & Gas, Real Estate and Finance; previously with Birchcliff Energy Ltd., Equatorial Energy Inc. and Boardwalk Equities Inc. The last 17 years exclusively in the Oil & Gas sector.

Gregory A. Vavra, LL.B

Executive VP, Business Development

Mr. Vavra is a lawyer with over 25 years of corporate experience in the energy sector. Mr. Vavra was formerly the President and CEO of Raimount Energy Inc. and was engaged in all aspects of operations, management and public reporting. Prior to his tenure with Raimount, Mr. Vavra was the Vice-President of Pacific Cassiar Limited.

Robert Dion, CA

VP, Finance & CFO

Mr. Dion is a Chartered Accountant with over 25 years of public company financial experience in the petroleum industry. Mr. Dion has held various managerial positions with Compton Petroleum, Canadian Natural Resources, Rio Alto Exploration, and Nexen.

Tim Jerhoff, P.Eng

VP Engineering & Production

Mr. Jerhoff is a professional engineer with over 25 years of experience in the Canadian Oil & Gas industry. Mr. Jerhoff began his career with Petro-Canada in 1988 and has held positions with Richland Petroleum, Terraquest Energy, Provident Energy Trust and Encana.

Donald Martin, P.Geol.

VP, Exploration

Mr. Martin has over 30 years of progressive geoscience experience in the areas of exploration, development, acquisitions and divestitures as well as strategic planning in the Western Canadian Sedimentary basin. Mr. Martin started his career at PanCanadian Petroleum and has worked for a variety of junior to senior producers, including Marathon Canada, Anderson Exploration, Evergreen Resources and TriWestern Energy.