Manitok Energy Inc.

(MEI TSXV & MKRYF US OTC)

Corporate Presentation
November 2014

Reader Advisory
Forward-looking Statements
Certain statements contained in this presentation may constitute forward-looking information and statements. All statements in this presentation, other than
statements of historical fact, that address events or developments concerning Manitok Exploration Inc. ("Manitok") that Manitok expects to occur are
"forward-looking information and statements". Forward-looking information and statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "targeting", "intend", "could",
"might", "should", "believe", "budgeted", "scheduled and "forecasts", and similar expressions and variations (including negative variations). In particular,
but without limiting the foregoing, this presentation contains forward-looking information and statements pertaining to the following: future oil, NGLs and
gas production and cash flows; additions of future oil and gas reserves and future recovery factors; future drilling plans, locations and inventory and future
seismic activity; predictability, stability and reliability of future oil and gas production; future exploration and development opportunities; future netbacks
and capital expenditures; mergers and acquisitions; future debt reduction; the volumes and estimated value of Manitok's oil and gas reserves; future results
from operations and operating metrics; and future costs and expenses. Forward-looking information and statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause Manitok's actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and statements. In
preparing this presentation, estimates and assumptions have been made relating to, among other things: prevailing commodity prices and exchange rates;
applicable royalty rates and tax laws; future well production rates; the performance of existing wells; the success of drilling new wells; the availability of
capital to undertake planned activities; and the availability and cost of labour and services. Many of these estimates and assumptions are based on factors
and events that are not within the control of Manitok and there is no assurance they will prove to be correct. Risk factors that could cause actual results to
differ materially from those anticipated in these forward-looking information and statements include: the volatility of natural gas and oil prices; the
limitations that Manitok's level of indebtedness may have on Manitok's financial flexibility; declines in the values of Manitok's natural gas and oil properties
resulting in ceiling test write-downs; the availability of capital on an economic basis, including through planned asset monetization transactions, to fund
reserve replacement costs; Manitok's ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of natural gas and oil
reserves and projecting future rates of production and the amount and timing of development expenditures; exploration and development drilling that does
not result in commercially productive reserves; expiration of natural gas and oil leases that are not held by production; hedging activities resulting in lower
prices realized on natural gas and oil sales and the need to secure hedging liabilities; uncertainties in evaluating natural gas and oil reserves of acquired
properties and potential liabilities; the negative impact lower natural gas and oil prices could have on Manitok's ability to borrow; drilling and operating
risks, including potential environmental liabilities; transportation capacity constraints and interruptions that could adversely affect Manitok's cash flow;
potential increased operating costs resulting from legislative and regulatory changes such as those proposed with respect to commodity derivatives trading,
natural gas and oil tax incentives and deductions, hydraulic fracturing and climate change; and losses possible from pending or future litigation.
Manitok's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome
of future drilling activity. Although Manitok believe the expectations and forecasts reflected in these and other forward-looking information and statements
are reasonable, Manitok can give no assurance they will prove to have been correct. Such expectations and forecasts can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties. New factors emerge from time to time and it is not possible for management to predict all
such factors and to assess in advance the impact of such factor on Manitok's business or the extent to which any factor, or combination of factors, may
cause actual results that differ from those contained in any forward-looking information or statements.
All of the forward-looking information and statements contained in this presentation are qualified by these cautionary statements. The reader of this
presentation is cautioned not to place undue reliance on any forward-looking information and statements. Manitok expressly disclaims any intention or
obligation to update or revise any forward-looking information and statements, whether as a result of new information, events or otherwise, except in
accordance with applicable securities laws.

Reader Advisory
Forward-looking Statements Continued
Accredited Investor
This is not an offer to sell or a solicitation of an offer to purchase securities by Manitok. In Canada, this presentation and its contents are directed only at
"accredited investors" (as defined in National Instrument 45-106 Prospectus and Registration Exemptions). In the United States, any such offer or
solicitation will only be made to "qualified institutional buyers" (as defined in Rule 144A of the United States Securities Act of 1933, as amended ("U.S.
Securities Act")) or to "accredited investors" (as defined in Rule 501(a) of Regulation D under the Securities Act of 1933). By agreeing to receive this
presentation, you represent and warrant that you are a person who falls within one of the foregoing descriptions of persons entitled to receive this
presentation and that you agree to be bound by the provisions of this disclaimer. Any subsequent offer to sell or solicitation of an offer to purchase
securities by Manitok will be made by means of offering documents (e.g., term sheet, prospectus, offering memorandum, subscription agreement and or
similar documents (collectively, the "Offering Documents")) prepared by Manitok for use in connection with such subsequent offer or solicitation and only
in jurisdictions where permitted by law. In the event of a subsequent offer to sell or solicitation of an offer to purchase securities by Manitok, investors
should refer to the Offering Documents for more complete information, including investment risks, management fees and fund expenses.
Non-Solicitation
The attached material is provided for informational purposes only as of the date hereof, is not complete, and may not contain certain material information
about Manitok, including important disclosures and risk factors associated with an investment in Manitok. This information does not take into account the
particular investment objectives or financial circumstances of any specific person who may receive it. In the event of a subsequent offer to sell or a
solicitation of an offer to purchase securities by Manitok, more complete disclosures and the terms and conditions relating to a particular investment will be
contained in the Offering Documents prepared for such offer or solicitation. Before making any investment, prospective investors should thoroughly and
carefully review the Offering Documents with their financial, legal and tax advisors to determine whether an investment is suitable for them.
Neither Manitok nor any of its directors, officers, employees, agents or advisors makes any representation or warranty in respect of the contents of this
presentation or otherwise in relation to Manitok or its business. In particular, no representation or warranty, express or implied, is made as to the fairness,
accuracy or completeness of the information or opinions contained herein, which have not been independently verified. No person shall have any right of
action (except in case of fraud) against Manitok or any other person in relation to the accuracy or completeness of the information contained in this
presentation. The information contained in this presentation is provided as at the date hereof and is subject to amendment, revision and updating in any
way without notice or liability to any party.
This document and its contents are confidential. It is being supplied to you solely for your information and may not be reproduced or forwarded to any
other person or published (in whole or in part) for any purpose.
Certain information contained herein has been prepared by third-party sources. Such information has not been independently audited or verified by
Manitok. Manitok has used its best efforts to ensure the accuracy and completeness of the information presented.
BOE Conversions
The term barrels of oil equivalent ("boe"), as used in this presentation, may be misleading, particularly if used in isolation. Per boe amounts have been
calculated using a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil. This boe conversion ratio of 6:1 is based on an energy
equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Why Invest in Manitok?

Stolberg production now at 4,800 net boe/d (55% oil) with

another 250 boe/d soon to be on; non constrained and 2015 well
tie-in times will be faster;

An additional 2,137 boe/d (45% oil) behind pipe at Entice

based on 4 successful well tests out of 4 wells drilled;
anticipated to be on production in December;

Latest successful Entice Glauc well tested for over 16 days

at 321 bbls/d of 40 API oil and 2.9 Mmcf/d of natural gas
(804 boe/d); 2,137 boe/d production tested on only 2% of its
96,800 net acre land base (100% working interest);

4 additional Entice horizontal wells (2 Glauc and 2 BQ) to be

completed and tested over November;

Trading at an EV of $41,000 per flowing boe based on current

production (peer group average is $77,100), $30,700 based on
exit guidance and $27,500 including behind pipe volumes;

55 to 60% of 2015 oil production hedged at CDN$93.63 WTI oil;

price floor of CDN$3.46 AECO on 2015 gas using deferred puts;

Manitok executive team have the necessary experience to

execute its corporate plan to reach production of 20,000
boe/d in 5 years.
4

Corporate Snapshot MEI on TSXV

MKRYF US OTC
Market Capitalization at $1.71/share

~ $120 million

Common Shares Outstanding at October 31, 2014

66,132,507

Options (wgt avg exercise price of $2.05/share)

4,335,273

Insider Ownership, Undiluted / Diluted

5.4% / 9.3%

Est. Net Debt at September 30, 2014 ($105MM Credit Facility)

~ $59.2 million

November 10, 2014 Production (2,488 boe/d behind pipe)

~ 4,800 boe/d (55% Oil)(1)

Proved plus Probable Reserves Dec 31/13

12,149.5 Mboe (65% Oil)(1)

Reserve Life Index (proved plus probable)

6.7 yrs(1)

Gross Total Land (94% Avg Working Interest)

310,000 acres(1)

Gross Undeveloped Land (96% Avg Working Interest)

295,000 acres(1)

97.5% of undeveloped land base has no production or reserves assigned to it

1.

Adjusted for the disposition of 777 boe/d of production , 4,570 Mboe of 2P reserves, and associated lands announced on Februa ry 27, 2014 and closed February 28, 2014.

2014/Q1 2015 Entice Drilling Program

Lithic Glauc Vertical &
planned Hz offset wells

North

MEI Lower BQ vert well

(18 boe/d) & planned
Hz offset wells

2 horizontal Lithic Glauc wells tested at

combined flowing rates of over 1,565
boe/d (649 bbls/d of 40 API oil);

2 horizontal BQ wells tested at combined

flowing rates of 572 boe/d (312 bbls/d of 27
to 30 API oil);

2,137 boe/d (45% oil) behind pipe at south

Entice with first 4 wells of summer
program;

The Lithic Glauc and BQ pool discoveries,

from the first 4 horizontal wells drilled in the
second half of 2014, has led to an
immediate inventory of 30 horizontal
development drilling locations;

5 additional horizontal wells (2 Glauc and 3

BQ) will be drilled prior to the end of 2014
and 2 more Glauc wells in Q1 2015;

Planned Hz BQ
well locations

Central

MEI Hz BQ well 1.5

Mmcf/d gas and 17
bbls/d oil & planned
Hz BQ and Hz Lithic
Glauc wells

Hz Lithic Glauc well tested

328 bbls/d of 40 API oil and
2.6 Mmcf/d of gas (6 days);

South

Hz Lithic Glauc well tested

321 bbls/d of 40 API oil and
2.9 Mmcf/d of gas (16.5 days);
BQ Hz well tested at 177
bbls/d of 27API oil and 1.1
Mmcf/d of gas (2.9 days)
BQ Hz well tested at 135
bbls/d of 30API oil and 420
Mcf/d of gas (3.3 days)
Lithic Glauc Vert well
produced 90 Mbbls and 1.5 Bcf
with max daily rate < 20 boe/d

Entice Lower BQ Pool

Produced 4.9 Mmboe
from ~1,280 acres

Successful Corporate Strategy

Focus on Underexploited Conventional
Reservoirs with Large OGIP
Using latest drilling and completion
technology to unlock reserves;
Competitive Advantages in Core Areas
Few companies with necessary technical
expertise in the Foothills;

Competition has been minimized with 6

year freehold lease with Prairie Sky Royalty
Ltd. (PSK TSX) ;

Execute on its Corporate Plan

Building a large transparent drilling
inventory in order to increase cash flow,
production and reserves on a per share
basis;

Achieve corporate production of 20,000

boe/d within the next 5 years through both
growth from the drill-bit and accretive
acquisitions;

Exceptional Production Growth

Average Production Volumes by Quarter
(boe/d)
6,000

Established Track Record of Successful Capital Allocation

Disposition of Natural Gas Assets of
~777 boe/d for $22 million. More
than doubled the production sold by
redeploying the capital.

Gas (boe/d)
Oil & liquids (bbls/d)

5,000

4,000
Disposition of
Swimming Heavy Oil
Assets (~350 bbls/d)

Behind pipe
production
of ~2,200
boe/d to be
added in
late Q4

1st

successful Stolberg
gas well, followed by
1,300 boe/d Acquisition

3,000

2,000

1,000

Q3'10
1)

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Estimates are derived from Manitoks 2014 guidance as provided in the following slide.

Q2'13

Q3'13

Q4'13

Q1'14e Q2'14e Q3'14e Q4'14e

Growth Per Share Continues in 2014

At $1.71 per share, MEI is trading at 2.4x forecast 2014 cash flow.

Production
Annual (boe/d)
% Oil and liquids
Exit rate (boe/d)
% Oil and liquids
Exit Production per Thousand Shares (boe)

2012 Actual

2013 Actual

Annual
Increase

2,389
40%
3,860
42%
22.5

4,113
52%
5,550
58%
27.9

72%
30%
44%
38%
24%

Benchmark pricing
Crude oil WTI (US$)
$CAD/$US exchange rate
Crude oil WTI ($CAD)
Differential WTI ($CAD) to Realized
Natural gas AECO daily spot ($/mmbtu)
Netbacks
Operating ($/boe)
Funds from operations ($/boe)
Funds from operations
Funds from operations per share
Net Capital expenditures
Net debt at year end

25.59
21.82
19.1 million
$0.30
44.2 million
10 million

2014
Annual
Guidance Increase
4,750 4,950
57% - 59%
6,100 6,500
54% 56%

18%
12%
14%
5%

34.8

25%

97.98
1.03

97.67
1.09

100.92
(11.17)
3.18

106.67
(10.88)
4.61

33.07
27.68
41.6 million
$0.59
79.4 million
32.5 million

29%
27%
118%
97%
80%
225%

36.29
27.74
48 50 million
$0.70

10%
0%
18%
19%

82 million
88 million

3%
169%
9

Normal Course Issuer bid (NCIB) Growth Through Acquisition

Buying MEI shares at less than 3.0x cash flow is accretive to shareholders
Number of
Shares
NCIB from Nov. 8, 2013 to
October 31, 2014
(11,943,200)
Exercised Stock Options

1,880,000

Price /
Share

Total Dollars

$ 2.35

$ (28,026,562)

$ 1.39

$ 2,618,103

Net Increase (Decrease) (10,063,200)

Per Share,
Pre NCIB,
Based on
76,030,140
Shares O/S

$ (25,408,459)

Per Share,
Post NCIB,
Based on
65,970,940
Net
Shares O/S Accretion

"Acquired" Assets
Through NCIB

Purchase Purchase
Metrics @ Metrics @
$0 Land $150/acre
Value
Land Value

Est. 2014 Average Production,

boe/d (based on guidance)

4,850

0.0233

0.0268

15.2%

740 boe/d

$ 34,358

$ 27,051

per flowing boe

Est. 2014 Exit Rate Production,

boe/d (based on guidance)

6,500

0.0312

0.03560

15.2%

991 boe/d

$ 25,636

$ 20,184

per flowing boe

Estimated 2014 Cash Flow

(based on guidance)

$50 mil.

$ 0.6576

$ 0.7579

15.2%

$ 7.62 mil. / yr.

3.3

Undeveloped Land, Net acres

283,200

0.0037

0.0043

15.2%

43,182 acres

2.5
-

x CF multiple

$ 6.48 mil. of Land Value

10

Board of Directors
The People
Bruno Geremia, C.A. - Chairman
VP Finance & CFO, Birchcliff Energy (BIR TSX)
Massimo Geremia
President & CEO, Manitok Energy (MEI TSXV)
Wilfred A. Gobert
Retired, former Vice Chairman of Peters & Co; Director of Canadian Natural Resources (CNQ
TSX) and Trilogy Energy Corp. (TET TSX)
Keith McLeod, P.Eng.
Former Director, Partner, and CEO of Sproule Associates Ltd.
Dennis Nerland, Q.C.
Partner, Shea Nerland Calnan LLP; Director of Crew Energy Inc. (CR-TSX) and DeeThree
Exploration Ltd. (DTXTSX)
Greg Peterson
Partner, Gowlings Canada
Tom Spoletini
Independent Businessman; founder of several successful private companies in Calgary
Cameron Vouri, P.Eng.
COO, Manitok Energy (MEI TSXV)
11

Experienced Management Team

Massimo Geremia, President & CEO

25 years of public company experience in Oil &Gas, Real Estate and Finance; previously with
Birchcliff Energy Ltd., Equatorial Energy Inc. & Boardwalk Equities Inc.;

Cameron Vouri, P. Eng, COO

Over 25 years of experience; former President Upstream Canadian Oil and Gas Business unit at
Provident Energy Trust; instrumental in the growth of Provident from 3,000 boe/d to 30,000 boe/d;
Robert Dion CA, VP Finance & CFO

20 years of industry experience in senior financial positions at Compton Petroleum Corp., Canadian
Natural Resources Ltd., Rio Alto Exploration Ltd. and Nexen Inc.;
Tim Jerhoff, P.Eng. , VP Production and Engineering

Over 25 years of experience with Encana, Provident Energy Trust and Richland Petroleum; most
recent role was as Manager, Clearwater South Production at Encana where he was responsible for
30,000 Boe/d and a capital program of over $100 million;
Don Martin, B.Sc. Honours, VP Exploration, Plains

33 years of progressive geoscience experience; previously with Evergreen Resources, Marathon

Canada, Anderson Exploration and Pan Canadian Petroleum;

Robert Brown M. Sc., Senior Manager Business Development

17 years of industry experience; previously with Talisman Energy and Vermillion Resources Ltd.
12

Stolberg Production Growth

Up to 3,100 to 4,400 net boe/d (50% oil) of

potential production upside remaining:

Cardium Oil 15 (6.8 net) wells;

+2,580 net boe/d unrisked;

+1,800 net boe/d risked at 70%;

Mannville Gas 2 (1.5 net) wells

+1,860 net boe/d unrisked;

+1,300 net boe/d risked at 70%;

Water flood based on third party

engineering computer simulations,
potential to increase the oil recovery
factor from 9% to 25%;
Total Cardium Hz Cost (DC, C & E)

$4.8 MM

30 Day IP Rate (80% oil)*

380 Boe/d

EUR*

360 Mboe

BT NPV10 (risked)

$4.5 MM

BT IRR* (risked)

76%

Recycle Ratio / Payout

3.5x / 1.5 yrs.

Planned 2014 Drills

16 (~7.9 net)

Manitok operates all drilling and production on its Stolberg asset.

Non-operated partners include Husky Energy, Centrica, and
Petrus Resources.

Cordel
2014 drilling program

Stolberg
Cordel
Water Flood

12 MMcf/d Mannville
gas test rate

1,100 Boe/d Cardium

oil test rate

1 section = 1 sq. mile (1x1 mile)

* 30 day initial production rates and EUR were derived by Manitok Management using an average actual results to date on all wells drilled to the end
of 2013 at Stolberg and Manitoks 2013 reserves report. Assumed US$88 WTI oil and CDN$3.75 AECO gas.

13

Large Scale Opportunity at Entice

New Pool Log
Leads 55 have
been identified.

Viking
Glauconitic
Ellerslie / BQ
Pekisko
Nisku
Wabamun
1 TWP = 36
sq. miles (6x6
miles)

R 25 24 23
Wbmn Swalwell
D-1 A Pool
Cum 4 MMBO
59 Wells, 1996

Swallwell
Nisku Pools
Cum 5 MMBO
17 wells, 1969

28

27
26
25

24

Nsku Wayne A Pool

Cum 11 MMBO
40 Wells, 1993

Wayne-Rosedale
BQ (Ellerslie)
Recent Cenovus Hz
drilling activity

Glcc A-C Pool

Cum 3.7Bcf &
370 MBO
4 Wells, 1979

Underexploited - Only 250 well

penetrations in the Mannville or
deeper;
Full 3D seismic coverage over
entire block (> 400 sq. miles);

Glcc F Pool
Cum 6 MMBO
20 Wells, 1987

New pool discoveries will lead to

an increased drilling inventory
over time.
Strathmore

Calgary

23
Twp 22

Mannville well density plotted on map

BQ (Elrl) Entice B
Pool
Cum 4.9 MMBO
39 Wells, 1987

* Production data compiled by Manitok from: Geoscout and public databases.

Glcc A Pool
Cum 1.2 MMBO
9 Wells, 1992

Drilling of over 40 Basal

Quartz Hz wells since 2010
increased oil production
from ~1,000 bbls/d to a
peak of ~4,000 bbls/d

Glcc HussarA Pool

Cum 26 MMBO
46 Wells, 1958

Over 200 MMbbls of

cumulative oil production and
12 Tcf of cumulative gas
production in the surrounding
area.
Glcc Blackfoot D Pool
Cum 7 Bcf & 741 MBO
9 Wells, 1995

14

100/4-16-27-19W4/0
100/13-28-27-20W4/0
102/14-28-27-20W4/0
100/4-32-26-18W4/0
100/16-15-27-18W4/0
100/2-10-27-18W4/0
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106/7-8-27-19W4/0
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100/16-9-27-18W4/0
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103/6-4-26-19W4/0
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100/15-8-25-20W4/0
100/10-16-25-17W4/2
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100/3-7-24-17W4/0
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100/3-9-26-19W4/0
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102/14-16-27-19W4/0
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100/3-16-27-18W4/0
103/13-16-27-19W4/0
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100/3-11-26-17W4/0
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103/16-21-27-18W4/0
102/16-27-26-18W4/0
100/6-8-25-18W4/0
100/11-1-25-20W4/0

Cenovus Hz Well Results in Basal

Quartz Reservoir IP90 Rates
Cenovus (CVE-TSX) Hz Drills 2010-2013 Wayne-Rosedale BQ(1)
800.0

700.0

600.0

Initial
Production
90 days
(BOE/D)
200.0

2010
2011

1) Data compiled by Manitok from: Geoscout, Canadian Discovery

2012

NCS Multistage
(uncemented, Hybrid)
NCS Multistage
(cemented)
PP StackFRAC
No Record

2013

500.0

400.0

300.0

IRR = ~170%

Average 90 day Initial Production Rate of 198 boe/d on 44 wells

IRR = ~80%

100.0

IRR = ~20%

0.0

15

Multi-Stage Fracs - Key to Unlocking

Variability of Reservoir Quality
Cenovus (CVE-TSX) Operated Wells
Wayne Area (purple elipse on page 14)
Basal Quartz (Ellerslie) Pool

CVE 102/13-15-27-18W4
Horizontal Well, RR 2011

BQ (ELRL) Cum: 113,667 BO

CP: 116bopd (3 yrs later)

CP: 3.5 bopd

IP30: 18 bopd

IP30: 530 bopd

CVE 100/16-15-27-8W4
Horizontal Well, RR 2011

BQ (ELRL) Cum: 102,498 BO

CP: 83bopd (3 yrs later)

Basal Quartz horizontal wells have had

significant success despite offsetting
some very low rate vertical wells(1);
Nine Cenovus Hz wells, directly
offsetting the original low rate vertical
wells, exhibiting stabilized initial
production (IP) rates ranging from ~80
to over 500 bopd;

CVE 100/11-15-27-18W4
Vertical, deviated well, RR 2009
BQ (ELRL) Cum: 8,163 BO

IP30: 417 bopd

CVE 103/6-10-27-18W4/02
T27
Vertical, dev. well, RR 2009
BQ (ELRL) Cum: 3,849 BO

CP: 2.7 bopd

CVE 3 Horizontal Wells

Sections 10 & 11
RR 2011-2012

BQ Cum: ~200,000 BO

CP: 430 bopd,

IP30: 1,111 bopd
(370 bopd avg)
CVE 4 Horizontal Wells
Sect 27, RR 2012-2013
BQ (ELRL)

Cum: ~121,000 BO

CP: 1,032 bopd,

IP30:1,083 bopd
(270 bopd avg)

CVE 100/13-22-26-18W4
Vertical Well, RR 2006
BQ (ELRL) Cum: 2,174 BO

CP: Susp at <2 bopd

1) Data compiled by Manitok from: Geoscout, Canadian Discovery. Manitok has no working interest in these wells.

R18W4
16

Entice Lands
Large Contiguous Land Base to Develop Efficient, Scalable Operations
Footprint spanning nearly 9 townships (~96,800 net acres) with PNG rights from the base of the
Belly River to the base of the Devonian on even sections (checker board pattern); ROFO and
pooling clause on another ~96,000 net acres (odd sections);
3 year primary term plus an option to extend for an additional 3 years under the same terms;
100% working interest with freehold royalties on production with a minimum of 10% and
maximum of 30% on a sliding scale based on both volume and price (same scale as AB Crown
Royalties);
Favorable access, through priority 2 processing status, to Encana (ECA-TSX) facilities with
spare capacity; extensive Encana pipeline system through land base;
Multi-zone Potential, Proprietary 3D Seismic Data and Public Log Data on ~250 Wellbores
+200 million bbls of offsetting historical oil production and over 70 successful horizontal wells
drilled in the Lithic Glauconitic and Basal Quartz by Cenovus (CVE-TSX) on offsetting lands;
Leased lands include full 3D seismic coverage (~420 sq. miles) with an estimated replacement
value of greater than $40 million;
Primary targets include the Glauconitic and Basal Quartz (Ellerslie); secondary targets include
Viking, Upper Mannville, Pekisko and Nisku;

Prairie Sky Royalty Ltd. (PSK TSX)

Prairie Sky Royalty Ltd. considers partnership with MEI as important to its start-up strategy.
17

Lithic Glauc Oil Channel Discovery

at South Entice

2 horizontal Lithic Glauc wells tested at

combined flowing rates of over 1,565 boe/d
(649 bbls/d of 40 API oil);

6 immediate offset, and 12 total horizontal drilling

locations identified to date;

Planning to drill 3 more horizontal Glauc wells on

this trend prior to the end of Q1 2015;

T23 R25W4

Expecting the 2 wells drilled on the first pad to be

on production in December.
Total Lithic Glauc Hz Cost (DC, C & E)

$2.73 MM

30 Day IP Rate (35% 40 API oil)*

540 Boe/d

EUR (35% oil)*

300 Mboe

BT NPV10

$3.0 MM

BT IRR*

110%

Recycle Ratio / Payout

2.5x / 1.2 yrs.

Planned 2014 Drills (100% WI)

* 30 day initial production rates and EUR were derived by Manitok Management. Assumed US$88 WTI oil and CDN$3.75 AECO gas.

Manitoks 15-32 and 1632 Hz Lithic Glauc wells

The 14-20 vertical

well produced about
92 Mbbls of oil and
1.5 Bcf of gas since
1963 from the Lithic
Glauc zone

T22 R25W4

18

Upcoming Central Entice Hz Lithic

Glauc Oil Targets
T25 R24W4

2 initial horizontal drilling locations shown

in red with potential immediate follow up
locations shown in green.

Planning to offset a vertical well drilled in 2002 which

encountered 23 meters of bypassed pay in the
Lithic Glauc formation; at that time, the well was
fracture stimulated and produced approximately 100
Bbls of oil on a test;

Well log and rock samples compare favourably to

the recently successful 15-32 horizontal Lithic Glauc
well drilled at the southern end of Entice.
19

BQ Oil Discovery at South Entice

2 horizontal BQ wells tested at combined flowing rates of

572 boe/d (312 bbls/d of 27 to 30 API oil);

Depositional environment interpreted as shallow marine

sands, as opposed to channel sands; the formation has
significant aerial extent which is supported by log data,
samples and seismic data, along with extensive oil shows
throughout the mapped area;

MIDDLE Basal Quartz

GROSS SAND
ISOPACH
CI 5m

T23 R25W4

15m

7 immediate offset, and 15 total Hz locations identified to

date; there are 10 to 12 sections of land on the trend that
will likely require 4 wells per section to optimize reserves
recovery; more if down-spacing is necessary;
Anticipate drilling 3 immediate horizontal offset wells in the
4th quarter of 2014;
Total BQ Hz Cost (DC, C & E)

$3.0 MM

30 Day IP Rate (56% 30 API oil)*

250 Boe/d

EUR (56% oil)*

210 Mboe

BT NPV10

$2.0 MM

BT IRR*

41%

Recycle Ratio / Payout

2.1x / 1.9 yrs.

Planned 2014 Drills (100% WI)

15m

10m
5m
0m

0m
5m
10m
15m

T22 R25W4
Entice Lower Mannville B
Pool Produced 4.9MMbbls
on ~2 sections

* 30 day initial production rates and EUR were derived by Manitok Management. Assumed US$88 WTI oil and CDN$3.75 AECO gas.

20

Additional BQ Oil to be tested at

Entice in 2014 and 2015
T27 R24W4

Offsets the 14-08 vertical

well drilled in 2005; 15 to 20
meters of net sand;

Identified trend 8 to 10 miles;

20 to 25 potential BQ
locations identified along the
trend;

Offsets the 6-16 vertical

producer; 18 meters of
net sand encountered
(12m > 6% porosity);

Identified trend > 8 miles;

20 to 25 potential BQ
locations identified along
the trend;

T28 R24W4
Offsets to
06-16
Vertical well

T25 R24W4

12-22-25-24W4 well drilled

in 1984 encountered 20
meters of prospective
Upper BQ sand;.

Logs and samples from

this well compare very
favourably with recent
successful horizontal BQ
wells drilled by Manitok,
Cenovus and Husky in, or
near, Entice.
21

Valuation Comparables

22

Why Buy Manitok Shares Today?

Stolberg production now at 4,800 net boe/d (55% oil) with

another 250 boe/d soon to be on; non constrained and 2015
well tie-in times will be faster;

An additional 2,137 boe/d (45% oil) behind pipe at Entice

based on 4 successful well tests out of 4 wells drilled;
anticipated to be on production in December;

Latest successful Entice Glauc well tested for over 16 days

at 321 bbls/d of 40 API oil and 2.9 Mmcf/d of natural gas
(804 boe/d); 2,137 boe/d production tested on only 2% of its
96,800 net acre land base (100% working interest);

4 additional Entice horizontal wells (2 Glauc and 2 BQ) to be

completed and tested over November;

Trading at an EV of $41,000 per flowing boe based on current

production (peer group average is $77,100), $30,700 based on
exit guidance and $27,500 including behind pipe volumes;

55 to 60% of 2015 oil production hedged at CDN$93.63 WTI

oil; price floor of CDN$3.46 AECO on 2015 gas using deferred
puts;

Manitok executive team have the necessary experience to

execute its corporate plan to reach production of 20,000
boe/d in 5 years.
23

Appendix

Cenovus Hz Well Results in Lithic

Glauc Reservoir IP90 Rates
Cenovus Hz Drills 2010-2013 Bantry/Cessford Glauconitic (1)
600.0

2010

2011

500.0

2012

2013

NCS Multistage
(uncemented, Hybrid)
NCS Multistage
(cemented)
PP StackFRAC
No Record

400.0

Initial
Production
90 days
(BOE/D)

300.0

IRR = ~140%

Average 90 day Initial Production Rate of 210 boe/d on 28 wells

200.0

100.0

IRR = ~81%

IRR = ~20%

0.0

1) Data compiled by Manitok from: Geoscout, Canadian Discovery

25

Hedging at October 31, 2014

Average
Strike Price

Contract
Traded

$96.00

Swap

CAD$ WTI

$93.35

Swap

January 1, 2014 to December 31, 2014

CAD$ WTI

$94.00

Swap

June 1, 2014 to December 31, 2014

CAD$ WTI

$105.17

Swap

June 1, 2014 to December 31, 2014

Ed . Sweet basis (CAD$)

$95.00

Swap
Swap
Put(1)

Subject of
Contract
Oil

Notional
Quantity

Remaining Term

500 bbls/d

January 1, 2014 to December 31, 2014

Reference
CAD$ WTI

Oil

500 bbls/d

January 1, 2014 to December 31, 2014

Oil

300 bbls/d

Oil

500 bbls/d

Oil

1,000 bbls/d

$8.67

Oil

1,000 bbls/d

January 1, 2015 to December 31, 2015

CAD$ WTI

Oil

500 bbls/d

January 1, 2015 to December 31, 2015

CAD$ WTI

Natural gas

5,000 GJs/d

January1, 2014 to December 31, 2014

CAD$ AECO

$91.00
$3.350

Natural gas

5,000 GJs/d

January1, 2014 to December 31, 2014

CAD$ AECO

$3.750

Put(1)

Natural gas

5,000 GJs/d

January1, 2015 to December 31, 2015

CAD$ AECO

$3.730

Put(2)

Natural gas

5,000 GJs/d

January1, 2015 to December 31, 2015

CAD$ AECO

$3.850

Put(1)

Natural gas

5,000 GJs/d

January1, 2015 to December 31, 2015

CAD$ AECO

$3.850

Put(1)

Natural gas

5,000 GJs/d

January1, 2015 to December 31, 2015

CAD$ AECO

$3.800

Put(1)

Natural gas

2,000 GJs/d

April 1, 2014 to October 31, 2014

CAD$

$3.660

Forward Sale

Natural gas

2,000 GJs/d

April 1, 2014 to October 31, 2014

CAD$

$3.760

Forward Sale

Natural gas

2,000 GJs/d

April 1, 2014 to October 31, 2014

CAD$

$3.875

Forward Sale

Oil

500 bbls/d

January 1, 2015 to December 31, 2015

CAD$ WTI

$96.00

Swaption(3)

Oil

1,000 bbls/d

January 1, 2016 to December 31, 2016

CAD$ WTI

$95.00

Swaption(4)

Oil

500 bbls/d

January 1, 2016 to December 31, 2016

CAD$ WTI

$91.00

Swaption(5)

(1) The counter-party to this contract receives a deferred put option premium of $0.35/GJ.
(2) The counter-party to this contract receives a deferred put option premium of $0.33/GJ.
(3) The counter-party to this contract holds a one-time option no later than December 31, 2014 to extend a swap on 500 barrels per day of oil at CAD$96.00 for the period indicated.
(4) The counter-party to this contract holds a one-time option no later than December 31, 2015 to extend a swap on 1,000 barrels per day of oil at CAD$95.00 for the period indicated.
(5) The counter-party to this contract holds a one-time option no later than December 31, 2015 to extend a swap on 500 barrels per day of oil at CAD$91.00 for the period indicated.

26

Analyst Coverage

Acumen Capital Trevor Reynolds

Canaccord Genuity Anthony Petrucci
Dundee Capital Markets Chad Ellison
Integral Capital Markets
Macquarie Capital Markets Canada Ltd. Ray Kwan
National Bank Financial Brian Milne
RBC Capital Markets - Shailender Randhawa

27