Manitok Energy Inc. has closed the acquisition of certain petroleum and natural gas assets in the Wayne area of southeast Alberta as previously announced on June 8, 2015 for a total cash consideration of $61.5 million prior to transaction costs and customary closing adjustments (the "Wayne Acquisition").
The acquisition was primarily funded with the following transactions:
•entered into a production volume royalty ("PVR") agreement with a royalty company for total cash consideration of $25.0 million prior to transaction costs and customary closing adjustments with an effective date of June 1, 2015. The PVR remains constant at 140 bbls/d of light crude oil for the first 8 years from the effective date to May 31, 2023, and is then subject to a 10% decline per year thereafter. There is an associated capital commitment to drill a minimum of 2 gross wells at Stolberg per year from 2016 to 2018;