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Manitok Energy closes the acquisition of Wayne assets in Southern Alberta


Published Jun 15, 2015
Manitok Energy Inc.

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;

Tags: Manitok Energy Inc.




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