- The success to date in Stolberg provides abundant evidence that our investment thesis is correct. The Alberta foothills are under-exploited relative to the rest of the western Canadian sedimentary basin and finding light oil and liquids rich natural gas can provide strong rates of return for those that can exploit the resource effectively. The fact that Manitok has drilled 2 monster wells in only its first 3 drills speaks volumes as to the opportunities that exist in the foothills and Manitok’s ability to identify and execute on those opportunities. Along with the above mentioned 9.6 Bcfe liquids rich natural gas well, Manitok made a new light oil pool discovery which tested for 44 hours at about 1,300 boe/d, of which approximately 1,100 bbls/d is 52° API oil. The well was drilled with a water based mud and was not stimulated. Every molecule of hydrocarbon that was produced in the test period is from the reservoir, not injected frac fluid, as is the case with every unconventional tight-oil well. With the capital in place to drill 12 gross (7.5 net) Cardium wells in 2012, the Manitok team is very excited about our drilling upside this year.
- Central Alberta
- Manitok made a $42.5 million asset acquisition in the Central Alberta foothills on November 1st. At that time, the acquisition consisted of 1,300 boe/d of production and 6,693 Mboe of 2P natural gas reserves with an RLI of 13.5. It also included 140,209 gross (31,652 net) acres of land, which is very prospective for light oil and liquids rich natural gas, and a significant amount of under-utilized capacity at various facilities, which will enable low cost future development of the liquids rich natural gas reserves on the lands. The acquired lands are also very prospective for Cardium light oil, with multiple pools to exploit over time; including the Cordel oil pool directly offsetting our Stolberg lands and Brown Creek which is similar to Stolberg. The acquisition more than doubled our inventory of immediate drilling locations for light oil and liquids rich natural gas.