December 2012 Corporate Presentation
2012 Guidance Assumptions -
POST FINANCING
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Oil price assumption of a 2012 average of US$93.20/bbl WTI (~CDN$83.94 EdPar);
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Manitok has a total of 750 bbls/d of oil hedged at a weighted average price of CAD$101.26 WTI for the remainder of 2012. The Corporation has 750 bbls/d hedged at a weighted average price of CAD$97.86 WTI for the first six months of 2013 and has 450 bbls/d hedged at a weighted average price of CAD$97.77 WTI for the last six months of 2013. The counterparties to the swaptions (the combination of a swap and selling a call option) have the right on or before December 31, 2012, to call 300 bbls/d at CAD$106.50 WTI for all of 2013, the right, on or before June 28, 2013, to call 500 bbls/d at a weighted average price of CAD$98.00 WTI for the second half of 2013, and the right on or before December 31, 2013, to call 750 bbls/d at a weighted average price of CAD$97.77 WTI for all of 2014. Subsequent to the end of the third quarter of 2012, Manitok has placed a price floor on 5,000 GJs of natural gas, which represents approximately 52% of Manitok's natural gas production in September 2012, at $3.05 per GJ at AECO for all of 2013. Manitok has purchased $3.40 per GJ AECO deferred put options for a $0.35 per GJ premium. The net effect is that Manitok will realize $3.05 per GJ on 5,000 GJs if the AECO spot price is $3.40 per GJ or less. If the AECO spot price is greater than $3.40 per GJ, Manitok will realize the AECO spot price less $0.35 per GJ on 5,000 GJs.
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Natural gas price assumption is an annual average of $2.10/GJ at AECO;
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Average operating costs of $10.90/boe;
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Average operating netback of $29.30boe; 2012 exit operating netback of $42.80/boe
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Average corporate royalty rate of 14.0%;
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Cdn/US Dollar exchange rate of 99.00;
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Average 2012 production of 2,430 boe/d (39% oil and liquids); 2012 exit production rate of 3,730 to 3,830 boe/d (57 - 60% oil and liquids);
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Average G&A expense of $4.70/boe; Exit 2012 G&A expense of $3.00/boe
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2012 cash flow of about $21.0 - $21.5 million; 2012 exit cash flow rate of $4.6 - $4.7 million per month;
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Expected debt at 2012 year end of $9.0 to $10.0 million;
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Debt to exit cash flow rate of about 0.2 times;
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Cash flow sensitivities of $149,000 for every US$1.00 change in annual average WTI oil prices and $282,000 for every CAD$0.10/GJ change in annual average AECO natural gas prices.