Manitok Energy Inc MKRYF

New Credit Facility of $90 million NR

[Vanboarder]

January 23, 2013 20:09 ET

Manitok Energy Inc. Announces New Credit Facility of $90 Million

 

 

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2013) -

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Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) is pleased to provide an update on its credit facility.

Manitok has entered into an arrangement with National Bank of Canada ("NBC") for a $70.0 million revolving operating demand loan and an acquisition and development demand loan of $20.0 million, for a total credit facility of $90.0 million (the "Credit Facility"). The Credit Facility is anticipated to be in place by early February 2013, subject to finalizing the necessary documentation.

The Credit Facility provides access to greater capital than is required to execute Manitok's previously announced $70.0 million capital expenditure program in 2013. Given the size of the Credit Facility and that Manitok's net debt at the end of 2012 is expected to be about $10.0 million (as previously disclosed on November 26, 2012), the Credit Facility allows Manitok ample financial flexibility to significantly increase its capital expenditure program during the year without having to raise additional capital through an equity financing. The decision for Manitok to increase its capital budget would be dependent on, but not limited to, meeting the targets of its 2013 capital expenditure program, the results achieved through its drilling program, the level of commodity prices and the opportunities available to Manitok at that time.

Manitok is pleased to enter into a new banking relationship with NBC and believes that there is a good fit between Manitok's business plan and the range of services provided by NBC going forward