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November 13, 2012, Calgary, Alberta - Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX-V: MEI) is pleased to provide an update on its continuous drilling operation at Stolberg.
Manitok has completed the production testing of its ninth Cardium well of the 2012 drilling program. The horizontal well offsets both the first and eighth wells from the same drilling pad. Manitok increased its ownership in the ninth well by farming-in to a partner's interest. In total, Manitok will pay 81.5% of the drilling and completions costs of the ninth well to increase its working interest from 68% to 76%. Similar to the previous horizontal wells on the Stolberg trend, the ninth well was not fracture stimulated. The ninth Cardium well tested at an average rate of 508 bbls/d (386 net) of 48° API oil with no measurable associated natural gas over a continuous 41 hour period. The well was free-flowing to surface during the entire test period and the estimated well draw down was only about 20%. Manitok will shut the well in for approximately one week due to a requirement to collect downhole pressure data. Following the shut-in period, Manitok intends to flow the well with temporary facilities. The process of constructing permanent facilities at the site is well underway.
Manitok believes that the successful results on both the eighth and ninth wells of the 2012 drilling program significantly reduces the risk along the Stolberg trend. Manitok intends to continue to focus on that trend over the near future. Manitok estimates that it has approximately twenty drilling locations along the Stolberg trend, including approximately eight wells that directly offset the prolific oil wells drilled to date.
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in the Canadian foothills. Manitok's corporate strategy is that of being an "early mover" in the exploitation phase of the development life cycle of hydrocarbon reserves in the Canadian Foothills. The Corporation will continue to utilize its experience and expertise to develop the untapped conventional sweet oil and liquids-rich natural gas pools in this large and under-exploited region 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
Tim de Freitas, Vice President, Exploration & Chief Operating Officer
This press release contains forward-looking statements. More particularly, this press release contains statements concerning planned construction of permanent facilities on the drilling pad of its ninth Cardium well, planned exploration and development activities, and the development and growth potential of Manitok's properties.
The forward-looking statements in this press release are based on certain key expectations and assumptions made by Manitok, including the operational parameters specifically set out in the press release and 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, validity of the geological and other technical interpretations that have been performed by Manitok's technical staff, 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 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 information is based on estimates and opinions of management of Manitok at the time the information is presented. Manitok may, as considered necessary in the circumstances, update or revise such forward-looking information, whether as a result of new information, future events or otherwise, but Manitok undertakes no obligation to update or revise any forward-looking information, except as required by applicable securities laws.
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.
Visit Manitok Energy Inc. Website: www.manitokenergy.com