ALBERTA

Manitok Energy commits to $106 million work program in lease deal with Encana

10/21/2013 07:26 EDT | Updated 12/21/2013 05:12 EST
CALGARY - Manitok Energy Inc (TSXV:MEI) is acquiring additional petroleum and natural gas leases in southeast Alberta from Encana Corp. (TSX:ECA).

The Calgary-based junior energy company says Encana has agreed to a three-year lease covering 38,757 hectares in the Entice area.

Manitok will have a 100 per cent working interest in the leases, which are contiguous with its core areas.

It has committed to spend $106 million over the period, including $22 million in 2014.

Manitok also announced Monday that a syndicate of underwriters initially agreed to acquire $20 million worth of flow-through shares from the company, and then increased the bought-deal was to $25 million later in the morning.

It said proceeds from the equity sale will be used by Manitok for exploration on its Canadian properties prior to Dec, 31, 2014. The flow-through shares allow investors to receive tax credits for eligible spending by the company.

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