/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES OF AMERICA./
CALGARY, Aug. 30, 2017 /CNW/ - Manitok Energy Inc. (the
"Corporation" or "Manitok") (TSX-V: MEI) announces its financial and operating results for the second
quarter of 2017.
The full text of Manitok's second quarter results are contained in its unaudited and unreviewed condensed interim consolidated
financial statements as at and for the three and six months ended June 30, 2017 and the related
management's discussion and analysis, copies of which are available electronically on Manitok's profile on the System for
Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and also on Manitok's website at www.manitokenergy.com.
Second Quarter 2017 Results:
- Average production increased by 55%, year over year, to 5,556 boe/d (38% light oil and liquids) as compared to 3,587 boe/d
(49% light oil and liquids) in the second quarter of 2016.
- Recorded negative funds from operations of $0.1 million in the second quarter of 2017 as
compared to negative funds from operations of $0.2 million in the second quarter of 2016. The
second quarter of 2017 included an $0.8 million one-time cash payment related to the amended
Lease Issuance and Drilling Commitment Agreement ("LIDCA"), which contributed to the $32.0
million reduction in Manitok's capital commitment over 2017 and 2018 as discussed below.
- Operating netback excluding the realized gain (loss) on financial instruments was $8.76/boe
as compared to $2.45/boe in the second quarter of 2016.
- Per unit operating expenses decreased by 4% to $14.87/boe as compared to $15.44/boe in the second quarter of 2016.
- Per unit G&A expenses decreased by 45% to $2.79/boe as compared to $5.03/boe in the second quarter of 2016.
- As at June 30, 2017, net bank debt was $40.3 million and net
debt was $73.4 million, which includes senior secured notes and long-term financial obligations.
- On May 24, 2017, Manitok announced amended terms to its LIDCA Agreement with an
Alberta based royalty company, including a $32.0 million
reduction of its capital commitment over 2017 and 2018. Full details are available in the press release which can be found
either on Manitok's website (www.manitokenergy.com) or under Manitok's SEDAR profile at www.sedar.com.
- On June 6, 2017, Manitok closed the previously announced arrangement agreement to acquire
Craft Oil Ltd. ("Craft Arrangement"), which includes approximately $4.5 million of
cash, $0.9 million of working capital surplus and approximately 250 boe/d (22% oil and liquids)
of production, subsequent to an asset divestiture by Craft, which closed prior to the Craft Arrangement. Craft shareholders
received 56.9 million common shares of Manitok.
OPERATIONAL AND FINANCIAL SUMMARY
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|
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Three months ended June 30,
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Six months ended June 30,
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2017
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2016
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2017
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2016
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Operating
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Average daily production
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|
|
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Light oil (bbls/d)
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1,505
|
1,519
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1,566
|
1,665
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Natural gas (mcf/d)
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20,605
|
11,004
|
22,144
|
12,654
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NGLs (bbls/d)
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617
|
235
|
669
|
223
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Total (boe/d)
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5,556
|
3,587
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5,926
|
3,997
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Average realized sales price
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Light oil ($/bbl)
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57.00
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49.42
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57.82
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42.38
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Natural gas ($/mcf)
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3.02
|
1.49
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2.94
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1.79
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NGLs ($/bbl)
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32.81
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24.86
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33.71
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23.31
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Total ($/boe)
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30.29
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27.11
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30.08
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24.64
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Netback and Cost ($ per boe)
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|
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Petroleum and natural gas sales
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30.29
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27.11
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30.08
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24.64
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Processing revenue
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1.01
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0.74
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0.97
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0.65
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Realized gain (loss) on financial instruments
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(0.67)
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5.74
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(0.75)
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24.47
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Royalty income
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0.07
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-
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0.05
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-
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Royalty expenses
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(6.35)
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(8.57)
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(6.78)
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(7.28)
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Operating expenses
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(14.87)
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(15.44)
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(13.34)
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(15.03)
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Transportation and marketing expenses
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(1.39)
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(1.39)
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(1.44)
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(1.47)
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Operating netback (1)
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8.09
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8.19
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8.79
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25.98
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General and administrative expenses
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(2.79)
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(5.03)
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(2.82)
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(4.38)
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Interest and financing expenses
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(3.48)
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(3.90)
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(3.19)
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(4.02)
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Funds from operations netback (1)
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1.82
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(0.74)
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2.78
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17.58
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Financial
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Petroleum and natural gas revenue ($000)
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15,352
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8,849
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32,314
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17,923
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Funds from operations ($000) (1)
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(92)
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(244)
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1,850
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12,791
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Per share – basic and diluted ($) (1)
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-
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-
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0.01
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0.08
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Net loss ($000)
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(8,549)
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(7,354)
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(12,375)
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(3,752)
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Per share – basic and diluted ($) (2)
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(0.03)
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(0.04)
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(0.05)
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(0.02)
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Common shares outstanding
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End of period – basic
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319,716,343
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177,510,671
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319,716,343
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177,510,671
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End of period – diluted
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386,267,338
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193,888,631
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386,267,338
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193,888,631
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Weighted average for the period – basic
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277,825,505
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168,663,250
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270,364,121
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162,364,715
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Weighted average for the period – diluted
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277,825,505
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169,036,922
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270,437,499
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162,678,786
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Capital expenditures, net of divestitures ($000)
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2,212
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3,260
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4,419
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9,426
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Adjusted working capital deficit (surplus) ($000) (1)
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3,044
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1,853
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3,044
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1,853
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Drawn on credit facilities ($000)
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37,209
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43,693
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37,209
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43,693
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Net bank debt ($000) (1)
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40,253
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45,546
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40,253
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45,546
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Senior Secured Notes
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18,363
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-
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18,363
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-
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Long-term financial obligations ($000)
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14,803
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14,902
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14,803
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14,902
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Net debt ($000) (1)
|
73,419
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60,448
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73,419
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60,448
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(1)
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Funds from operations, funds from operations per share, funds from
operations netback, operating netback, adjusted working capital deficit, net bank debt and net debt do not have
standardized meanings prescribed by generally accepted accounting principles and therefore should not be considered in
isolation. These reported amounts and their underlying calculations are not necessarily comparable or calculated in
an identical manner to a similarly titled measure of other companies where similar terminology is used. Where these
measures are used they should be given careful consideration by the reader. Refer to the Non-GAAP Financial Measures
paragraph in the Advisories section of this press release.
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(2)
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The basic and diluted weighted average shares outstanding are the same for
periods in which the Corporation records a net loss and when all the outstanding stock options and warrants are
anti-dilutive.
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About Manitok
Manitok is a public oil and gas exploration and development company focusing on Lithic Glauconitic light oil in southeast
Alberta and Cardium light oil in west central Alberta. The
Corporation utilizes its expertise, combined with the latest recovery techniques, to develop the remaining oil and liquids-rich
natural gas pools in its core areas of the Western Canadian Sedimentary Basin.
Non-GAAP Financial Measures
This press release contains references to measures used in the oil and natural gas industry such as "funds from
operations", "funds from operations netback", "funds from operations per share", "operating netback", "adjusted working capital
deficit", "net bank debt" and "net debt". These measures do not have standardized meanings prescribed by generally accepted
accounting principles ("GAAP"), including International Financial Reporting Standards ("IFRS") and therefore should
not be considered in isolation. These reported amounts and their underlying calculations are not necessarily comparable or
calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Where
these measures are used they should be given careful consideration by the reader. These measures have been described and
presented in this press release in order to provide shareholders and potential investors with additional information regarding
the Corporation's liquidity and its ability to generate funds to finance its operations.
Funds from operations should not be considered an alternative to, or more meaningful than, cash provided by operating,
investing and financing activities or net income as determined in accordance with GAAP, as an indicator of Manitok's performance
or liquidity. Funds from operations is used by Manitok to evaluate operating results and Manitok's ability to generate cash
flow to fund capital expenditures and repay indebtedness. Funds from operations denotes cash flow from operating activities
as it appears on the Corporation's Statement of Cash Flows before decommissioning expenditures, acquisition-related expenses and
changes in non-cash operating working capital. Funds from operations is also derived from net income (loss) plus non-cash items
including deferred income tax expense (recovery), depletion and depreciation expense, impairment expense, stock-based
compensation expense, accretion expense, unrealized gains or losses on financial instruments, gains or losses on asset
divestitures and the change in fair value of marketable securities. Funds from operations netback is calculated on a per boe
basis and funds from operations per share is calculated as funds from operations divided by the weighted average number of basic
and diluted common shares outstanding. Operating netback denotes petroleum and natural gas revenue, processing revenue, royalty
income and realized gains or losses on financial instruments less royalty expenses, operating expenses and transportation and
marketing expenses calculated on a per boe basis. Adjusted working capital deficit includes current assets less current
liabilities excluding the current portion of the amount drawn on the credit facilities, the current portion of the fair
value of financial instruments and provisions. Manitok uses net bank debt and net debt as a measure to assess its financial
position. Net bank debt includes outstanding bank indebtedness plus adjusted working capital deficit (surplus) and net debt
includes net bank debt plus the senior secured notes and the long-term financial obligations.
Barrels of Oil Equivalent
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Per boe amounts
have been calculated using a conversion ratio of six thousand cubic feet (6 mcf) of natural gas to one barrel (1 bbl) of crude
oil. The boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value.
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.
SOURCE Manitok Energy Inc.
View original content: http://www.newswire.ca/en/releases/archive/August2017/30/c4444.html