Manitok Energy (V.MEI) sets 2014 guidance: More wells drilled, more oil produced

Chris Parry Chris Parry, Stockhouse.com
0 Comments| January 29, 2014


If Calgary-based oil explorer/producer Manitok Energy (TSX:V.MEI, Stock Forum) hits the marks set in its capital program and guidance details for 2014, investors will see a 50% average production increase, a 32% year exit production increase over the previous year, and 34 gross wells drilled targeting light oil in the Stolberg, Entice and Southern Alberta foothills properties.
 
They’ll also see capital expenditures of approximately $104.5 million and a debt to funds from operations ratio of 1:1.
 
While Manitok’s production has been on the increase for several years, the company is set to fold the income from those operations back into exploring their substantial land holdings, with a view to feeding ongoing growth.
 
“The Corporation's 2014 drilling program will see a continued investment of capital in its successful Cardium light oil play in the Stolberg area of Alberta. Management is also excited to begin drilling and evaluating the newly acquired Entice lands in Southeast Alberta, and a small portion of the capital budget has been allocated to the Southern Alberta Foothills area, primarily Quirk Creek, which is dependent on a successful production testing period for the two recently drilled wells in the area. In addition, Manitok will continue to advance other prospects and drilling opportunities within its core areas.”
 
On the production side, the company is looking to bump average production up from the 2013 average of 4100 boe/d to 6200 boe/d, with an exit position of 7100 boe/d to 7500 boe/d and a 67%-70% oil and liquids makeup.
 
Manitok ended 2013 achieving a record 5500 boe/d which saw a near 20% stock increase and a BUY recommendation and a $5.25 target from Integral Wealth analysts.

FULL DISCLOSURE: Manitok Energy is a Stockhouse Publishing client.
 

Tags: OIL & GAS E&P ENERGY

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