Manitok Energy Inc. Announces a Significant Asset Acquisition and a $20.0 Million Offering of Units Consisting of Collateralized Exchange Listed Notes(TM) and Warrants

CALGARY, ALBERTA--(Marketwired - Sept. 29, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) is pleased to announce that it has entered into an asset purchase agreement with an Alberta based private oil and gas company to acquire certain assets that averaged 1,934 boe/d 32% light oil and NGLs) of production in the second quarter of 2016, and that are anticipated to average approximately 1,750 boe/d (34% light oil and NGLs) in November 2016, upon the closing of the Acquisition (the "Acquisition"). A majority of the assets being acquired pursuant to the Acquisition are comprised of mature Cardium light oil and natural gas assets in the Willisden Green area of west central Alberta and the balance of the assets are found in the Wildcat Hills and Enchant areas of Alberta (the "Assets"). The Acquisition is complementary to Manitok's existing asset base and technical expertise, providing the Corporation with an accretive increase in reserves and production relative to its outstanding common shares.

The total consideration for the Acquisition is $13.5 million before closing adjustments, payable in a combination of cash and Units (as defined below). The Units will have a deemed value of $100 per each Unit issued (the "Unit Consideration"). The total Unit Consideration to be issued to the vendor by Manitok shall be determined by Manitok in its sole discretion, up to a maximum of $4.5 million of Units. The cash consideration shall be an amount equal to the total consideration of $13.5 million less the Unit Consideration. It is anticipated that the Acquisition will close on or before November 30, 2016.

The Acquisition is expected to provide Manitok with a 37% increase to its anticipated corporate production for November 2016 and additional growth potential in areas where it has significant expertise. The Acquisition includes approximately 90,000 acres (55,800 net) of undeveloped land, and facilities in Willisden Green which include an emulsion handling facility with capacity of approximately 2,500 bbls/d and a natural gas compressor station with capacity of 11 Mmcf/d. The oil facility is pipeline connected to a terminal owned and operated by Pembina Pipeline Corporation and is only 70 kilometres east of Manitok's Stolberg assets. The Corporation anticipates potential transportation cost savings and oil blending synergies between the Stolberg and Willisden Green assets.