Manitok Energy Inc. (“Manitok”) (TSX-V: MEI) is pleased to announce that it has entered into a definitive amalgamation agreement with Corinthian Oil Corp. (“Corinthian”) and 2065718 Alberta Inc., a wholly owned subsidiary of Manitok (“Acquireco”), dated effective September 12, 2017 (the “Amalgamation Agreement”) to acquire all of the issued and outstanding shares of Corinthian (the “Transaction”).
As quoted in the press release:
Manitok will acquire approximately 180 boe/d of production (25% oil and liquids) with related oil battery and gas gathering system, as well as over 120,000 acres of land including 100,000 acres of net undeveloped land primarily located in the Heathdale area of southern Alberta. The production is mainly from the Colony, Glauconitic and Detrital formations, on which Manitok has identified additional exploitation opportunities. In addition to the production and land, there is approximately $2.9 million of net working capital, including $2.0 million of cash, which will increase Manitok’s liquidity, and not less than $5.0 million in total tax pools. Based on the engineering report effective December 31, 2016 prepared by GLJ Petroleum Consultants Ltd., independent qualified reserves evaluator of Corinthian, the total proved plus probable reserves associated with the Heathdale property is approximately 1.85 million boe (24% oil and liquids).