Mr. Massimo Geremia reports

MANITOK ENERGY INC. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2015 AND AN OPERATIONS UPDATE

Manitok Energy Inc. has released its financial and operating results for the third quarter of 2015, and an operational update.

Readers are cautioned that as this press release contains only a summary of Manitok's financial and operating results for the third quarter of 2015, it should be read in conjunction with the full text of Manitok's third quarter of 2015 report containing its unaudited condensed interim financial statements as at, and for the three and nine months ended Sept. 30, 2015, and the related management's discussion and analysis, copies of which are available electronically on Manitok's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) and also on Manitok's website.

Highlights of third-quarter 2015 results and subsequent events:

• Production averaged 4,434 barrels of oil equivalent per day (53 per cent light oil and liquids), which is a 12-per-cent increase over production of 3,962 boe/d (54 per cent light oil and liquids) in the third quarter of 2014;
• Recorded funds from operations of $6.6-million (eight cents per diluted share), a 22-per-cent decrease over funds from operations of $8.6-million (12 cents per diluted share) in the third quarter of 2014;
• The operating netback was $23.84 per boe, which is a decrease of 17 per cent from the operating netback of $28.67 per boe in the third quarter of 2014;
• Capital expenditures were $3.9-million, a decrease of 83 per cent from the capital expenditures of $22.8-million in the third quarter of 2014;
• As at Sept. 30, 2015, net bank debt was $66.0-million, and net debt, which includes long-term financial obligations, was $80.9-million. The corporation anticipates net bank debt of approximately $62.0-million to $63.0-million as at Dec. 31, 2015;
• On Nov. 25, 2015, the corporation fully satisfied the $5.0-million required repayment of the non-revolving reducing demand loan facility, which was due on Dec. 31, 2015;
• In the fourth quarter of 2015, the corporation entered into a binding letter of intent to execute a farm-out agreement with a private oil and gas company, whereby the farmee has committed to spend up to $20.0-million from the fourth quarter of 2015 to the end of 2016 in the Rockyford area and, depending on the level of success achieved with the drilling, may lead up to an additional $20.0-million of capital spending, with the farmee having an option to drill the offset wells before the end of 2017. Manitok will have the option, but not the obligation, to participate in each well and will be carried for a 5-per-cent working interest by the farmee in each well it does not participate. The entire capital spend from the farm-out agreement will be fully allocated to Manitok's Prairiesky Royalty Ltd. (PSK) capital commitment.

               OPERATIONS AND FINANCIAL SUMMARY

                                        Three months ended Nine months ended 
                                                  Sept. 30,         Sept. 30,
                                            2015      2014     2015     2014 
Operating 
Average daily production 
Light oil (bbl/d)                          2,176     2,066    2,103    2,593 
Natural gas (mcf/d)                       12,412    10,931   13,630   11,891 
NGL (bbl/d)                                  190        74      112       73
Total (boe/d)                              4,434     3,962    4,486    4,647 
Average realized sales price 
Light oil ($/bbl)                          51.85     95.17    54.26    98.62 
Natural gas ($/mcf)                         3.20      4.25     2.98     5.27 
NGL ($/bbl)                                29.50     98.93    40.31   101.03 
Total ($/boe)                              35.65     63.20    35.50    70.08 
Undeveloped land (end of 
period) 
Gross (acres)                            458,703   317,631  458,703  317,631 
Net (acres)                              428,046   300,249  428,046  300,249
Netback and cost ($ per 
boe ) 
Petroleum and natural gas 
revenue                                  $ 35.65   $ 63.20  $ 35.50  $ 70.09 
Realized gain (loss) on 
financial instruments                      15.75     (4.69)   13.37    (4.97)
Royalty expenses                          (10.13)   (19.64)   (9.13)  (22.07)
Operating expenses, net of 
recoveries                                (15.72)    (6.73)  (12.46)   (7.24)
Transportation and 
marketing expenses                         (1.71)    (3.47)   (2.31)   (3.44)
Operating netback (1)                      23.84     28.67    24.97    32.37 
General and administrative 
expenses, net of 
recoveries                                 (4.03)    (4.11)   (4.32)   (4.06)
Interest and financing 
expenses                                   (3.54)    (1.16)   (2.80)   (0.58)
Interest and other income                   0.02      0.06     0.02     0.02 
Funds from operations 
netback (1)                                16.29     23.46    17.87    27.75 
Financial 
Petroleum and natural gas 
revenue ($000)                            14,548    23,037   43,490   88,920 
Funds from operations 
($000)(1)                                  6,643     8,556   21,902   35,214 
Per share -- basic ($)(1)                   0.08      0.13     0.30     0.50 
Per share -- diluted ($)(1)                 0.08      0.12     0.30     0.49 
Net income (loss) ($000)                   8,316     7,900  (21,937)    (813)
Per share -- basic ($)                      0.10      0.12    (0.30)   (0.01)
Per share -- diluted ($)(2)                 0.10      0.11    (0.30)   (0.01)
Capital expenditures, net of 
divestitures ($000)                        3,890    22,832   37,750   42,741 
Adjusted working capital 
(surplus) deficit ($000)(1)                  598    11,067      598   11,067 
Drawn-on credit facilities 
($000)                                    65,371    48,098   65,371   48,098 
Net bank debt ($000)(1)                   65,969    59,165   65,969   59,165 
Long-term financial 
obligations ($000)                        14,966         -   14,966        - 
Net debt ($000)(1)                        80,935    59,165   80,935   59,165 

(1) Funds from operations, funds from operations per share, funds from 
    operations netback, operating netback, adjusted working capital 
   (surplus) deficit, net bank debt and net debt do not have standardized 
    meanings prescribed by generally accepted accounting principles and 
    therefore should not be considered in isolation. These reported amounts 
    and their underlying calculations are not necessarily comparable or 
    calculated in an identical manner with a similarly titled measure of other
    companies, where similar terminology is used. Where these measures are 
    used, they should be given careful consideration by the reader. Refer to 
    the non-generally accepted accounting principles measures paragraph in the
    advisories section of the MD&A
(2) The basic and diluted weighted average shares outstanding are the same 
    for periods in which the corporation records a net loss and when all the
    outstanding stock options are anti-dilutive.

Operations update

Manitok's production averaged 4,424 boe/d (53 per cent oil and liquids) for the quarter, although continued pipeline and facility restrictions at Stolberg and Carseland prevented Manitok from producing at full capacity. In Stolberg, pipeline restrictions curtailed production by approximately 406 boe/d (100 per cent natural gas plus associated liquids) in the third quarter of 2015 due to TransCanada Pipeline (TCPL) curtailments from a continuing maintenance program. Manitok anticipates completion of the maintenance program by February, 2016. In Carseland, restrictions related to processing the liquid-rich lithic glauconitic (LG) natural gas continued, which curtailed production by approximately 500 boe/d (48 per cent oil and liquids) in the quarter. Manitok is working with the third party gas plant operator to resolve the restrictions and anticipates a solution in the first half of 2016. In addition, the Atco natural gas transmission pipeline was shut down for four weeks for maintenance during the third quarter of 2015, which curtailed production at Carseland by approximately 200 boe/d (48 per cent oil and liquids) in the quarter. Manitok also injected more gas into its glauconitic E4E pool in the Wayne area, representing approximately 83 boe/d of deferred sales gas during the third quarter of 2015 as compared with the second quarter of 2015. Currently, November, 2015, production is approximately 4,500 boe/d based on field estimates despite continuing restrictions at Stolberg and Carseland. Restricted production accounts for approximately 100 boe/d to 150 boe/d at Stolberg and 800 to 850 boe/d at Carseland, and Manitok has two basal quartz (BQ) wells in Carseland awaiting tie-in once the processing restrictions with the third party plant are resolved, which represents approximately 548 boe/d based on initial production test rates.

Guidance

The corporation did not drill any wells during the first nine months of 2015, due to the current low-commodity-price environment. In the fourth quarter of 2015, one well (0.05 net carried) was drilled pursuant to the farm-out agreement, and the corporation executed various recompletion activities in southeast Alberta, which is anticipated to satisfy its 2015 PSK capital commitment.

As at Sept. 30, 2015, net bank debt was approximately $66.0-million. The corporation anticipates net bank debt of approximately $62.0-million to $63.0-million as at Dec. 31, 2015. Based on current forward strip crude oil and natural gas prices, Manitok will have the requisite liquidity to make its next required payment of $10.0-million on its non-revolving reducing demand loan facility before March 31, 2016.

The corporation continues to pursue alternative debt arrangements, joint venture opportunities, property acquisitions or divestitures, and other recapitalization opportunities, and is taking steps to manage its spending and indebtedness, including the implementation of cost-reduction and capital management initiatives to satisfy the non-revolving reducing demand loan facility repayment requirements.

Hedging

Oil hedges

In the fourth quarter of 2015, Manitok has hedged 2,000 barrels per day of crude oil at an average price of $89 West Texas Intermediate. Beyond 2015, Manitok has hedged 1,000 bbl/d of crude oil at $79.95 WTI for the 2016 calendar year and 500 bbl/d of crude oil at $79.75 WTI for the 2017 calendar year. The corporation has also option collar transactions for 1,000 bbl/d of crude oil from $68.68 to $86.18 WTI, net of the deferred premium for both the 2016 and 2017 calendar years.

Gas hedges

In the fourth quarter of 2015, Manitok has 16,000 gigajoules per day of natural gas at an average price of $3.83 per GJ, less a deferred premium of 35 cents per GJ.

We seek Safe Harbor.