Manitok Energy Inc. Announces 2013 Year-End Financial Results and Adoption of Advance Notice By-Law

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA.


Manitok Energy Inc. (the "Corporation" or "Manitok") (TSX VENTURE:MEI) announces
its financial and operating results for the year ended December 31, 2013. 


The full text of Manitok's year-end results are contained in its audited
financial statements as at and for the year ended December 31, 2013, the related
management's discussion and analysis and Manitok's Annual Information Form for
the year ended December 31, 2013, copies of which are available electronically
on Manitok's profile on the System for Electronic Document Analysis and
Retrieval ("SEDAR") at www.sedar.com and also on Manitok's website at
www.manitokenergy.com. 


Operational & Financial Highlights:



--  Increased average annual production by 72% from 2,389 boe/d (36% light
    oil and liquids) in 2012 to 4,113 boe/d (52% light oil and liquids) in
    2013; increased average fourth quarter production by 62% from 3,078
    boe/d (55% light oil and liquids) in the fourth quarter of 2012 to 4,989
    boe/d (57% light oil and liquids) in the fourth quarter of 2013. 
--  Increased the annual light oil and liquids weighting 44% over the light
    oil and liquids weighting in 2012. 
--  Recorded average annual production per share growth of 54% and funds
    from operations per share growth of 96% in 2013 when compared to 2012. 
--  Increased annual funds from operations by 118% from $19.1 million ($0.29
    per diluted share) in 2012 to $41.6 million ($0.57 per diluted share) in
    2013; increased funds from operations by 85% from $7.7 million ($0.11
    per diluted share) in the fourth quarter of 2012 to $14.1 million ($0.19
    per diluted share) in the fourth quarter of 2013. Increased the
    operating netback before the realized gain or loss on financial
    instruments by 29% from $25.59/boe to $33.07/boe.  
--  Increased net income to $3.6 million ($0.05 per basic share) in 2013 as
    compared to a net loss of $2.7 million ($0.04 loss per basic share) in
    2012.  
--  Capital expenditures in 2013 were approximately $79.4 million, net of
    $3.4 million in divestitures. This included drilling 16 gross (9.8 net)
    wells for about $46.5 million, $9.0 million on equipment and facilities
    and closing a Lease Issuance and Drilling Commitment Agreement with
    Encana Corporation, whereby Manitok acquired petroleum and natural gas
    leases covering 38,757 net hectares (96,893 net acres) in the Entice
    area of southeast Alberta for a total cash consideration of
    approximately $19.7 million, which included a bonus payment, lease
    rental costs and transaction fees.  
--  At December 31, 2013, net debt was approximately $32.5 million. 
--  Increased net undeveloped land to 323,907 acres as at December 31, 2013,
    an 81% increase from 178,938 acres as at December 31, 2012.



Operational and Financial Summary



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                                Three Months Ended     Twelve Months Ended  
                                        December 31             December 31 
                                                                            
                                   2013        2012        2013        2012 
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Operating                                                                   
Average daily production                                                    
  Natural gas (mcf/d)            12,868       8,344      11,782       8,556 
  Light oil (bbls/d)              2,755       1,618       2,065         793 
  Heavy oil (bbls/d)                  -           -           -          94 
  NGLs (bbls/d)                      89          69          84          76 
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  Total (boe/d)                   4,989       3,078       4,113       2,389 
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Average realized sales price                                                
  Natural gas ($/mcf)              4.03        3.64        3.61        2.62 
  Light oil ($/bbl)               82.30       82.53       89.75       82.87 
  Heavy oil ($/bbl)                   -           -           -       76.29 
  NGLs ($/bbl)                    76.48       77.71       78.07       77.60 
----------------------------------------------------------------------------
  Total ($/boe)                   57.21       54.99       57.00       42.34 
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Undeveloped Land (end of                                                    
 period)                                                                    
  Gross (acres)                 375,793     231,144     375,793     231,144 
  Net (acres)                   323,907     178,938     323,907     178,938 
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Netback and Cost                                                            
($/boe)                                                                     
  Petroleum and natural gas                                                 
   sales                          57.21       54.99       57.00       42.34 
  Realized gain (loss) on                                                   
   financial instruments          (0.48)       3.37       (1.27)       2.03 
  Royalty income                   0.01        0.43        0.25        0.38 
  Royalty expenses               (10.18)     (11.22)     (13.69)      (5.60)
  Operating expenses, net of                                                
   recoveries                     (8.83)     (10.48)      (7.62)      (9.14)
  Transportation and                                                        
   marketing expenses             (3.10)      (3.17)      (2.87)      (2.39)
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Operating netback(1)              34.63       33.92       31.80       27.62 
  Administrative expenses,                                                  
   net of recoveries              (3.53)      (6.79)      (3.82)      (5.65)
  Interest expenses               (0.37)      (0.23)      (0.38)      (0.19)
  Interest and other income        0.03        0.10        0.07        0.04 
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Funds from operations                                                       
 netback(1)                       30.76       27.00       27.67       21.82 
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Financial                                                                   
Petroleum and natural gas                                                   
 revenue ($000)                  26,260      15,696      85,950      37,349 
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Funds from operations                                                       
 ($000)(1)                       14,117       7,651      41,554      19,081 
  Per share - basic ($)(1)         0.19        0.11        0.59        0.30 
  Per share - diluted ($)(1)       0.19        0.11        0.57        0.29 
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Net income (loss) ($000)         (1,417)     (2,157)      3,615      (2,657)
  Per share - basic ($)           (0.02)      (0.03)       0.05       (0.04)
  Per share - diluted ($)(2)      (0.02)      (0.03)       0.05       (0.04)
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Common shares outstanding                                                   
  End of period - basic      74,492,340  70,339,014  74,492,340  70,339,014 
  End of period - diluted    80,099,780  75,122,847  80,099,780  75,122,847 
  Weighted average for the                                                  
   period - basic            72,638,096  68,908,419  70,654,634  63,567,788 
  Weighted average for the                                                  
   period - diluted          74,371,392  70,986,540  72,596,161  64,702,325 
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Capital expenditures, net of                                                
 divestitures ($000)             44,236      13,422      79,365      36,965 
Working capital deficit                                                     
 ($000)(1)                       16,277       6,861      16,277       6,861 
Drawn on credit facilities                                                  
 ($000)                          16,237       3,101      16,237       3,101 
Total net debt ($000)(1)         32,514       9,962      32,514       9,962 
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(1)   Funds from operations, funds from operations per share, funds from    
      operations netback, operating netback, working capital deficit and net
      debt do not have standardized meanings prescribed by GAAP 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 to 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-GAAP Financial Measures section of this  
      press release.                                                        
(2)   The basic and diluted weighted average shares outstanding are the same
      for years in which the Corporation records a net loss.                



2014 Guidance

The 2014 guidance remains unchanged from the Corporation's press release dated
February 27, 2014, a copy of which is available under Manitok's profile on SEDAR
at www.sedar.com. 


Advance Notice By-Law Amendment

The Corporation also announces board approval of an amendment to its by-laws to
include advance notice provisions (the "By-Law Amendment"), the purpose of which
is to require that advance notice be provided to the Corporation in
circumstances in which nominations of persons for election to the board of
directors of the Corporation are made by shareholders other than pursuant to the
requisition of a meeting or a shareholder proposal in accordance with the
Business Corporations Act (Alberta).


The By-Law Amendment fixes a deadline by which shareholders must provide notice
to the Corporation of nominations for election to the board, and sets out the
information that a shareholder must include in the notice for it to be valid.
The By-Law Amendment is in effect on the date hereof. In accordance with the
Business Corporations Act (Alberta), the amendment will be submitted to the
shareholders for confirmation at the Corporation's upcoming annual shareholders'
meeting.


In the case of an annual general meeting of shareholders, notice to the
Corporation must be made not less than 30 nor more than 65 days prior to the
date of the annual general meeting of shareholders; provided, however, that in
the event that the annual general meeting of shareholders is to be held on a
date that is less than 50 days after the date (the "Notice Date") on which the
first public announcement of the date of the annual meeting was made, notice by
the nominating shareholder may be made not later than the close of business on
the 10th day following the Notice Date. 


In the case of a special meeting (which is not also an annual general meeting)
of shareholders called for the purpose of electing directors (whether or not
called for other purposes), notice to the Corporation must be made not later
than the close of business on the 15th day following the day on which the first
public announcement of the date of the special meeting of shareholders was made.


The By-Law Amendment, containing the full details of the advance notice
provisions, is available under the Corporation's profile on SEDAR at
www.sedar.com. 


About Manitok

Manitok is a public oil and gas exploration and development company focusing on
conventional oil and gas reservoirs in the Canadian foothills and southeast
Alberta. The Corporation will utilize its experience to develop the untapped
conventional oil and liquids-rich natural gas pools in both the foothills and
southeast Alberta areas of the Western Canadian Sedimentary Basin. 


For further information view our website at www.manitokenergy.com. 

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the shareholder approval of the
By-Law Amendment. The forward-looking statements in this press release are based
on certain key expectations and assumptions made by Manitok, including
expectations and assumptions concerning, but are not limited to, the continued
market acceptance of advance notice by-laws. 


Although Manitok believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Manitok can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, risks associated with the oil and gas industry in general
(e.g., operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserves estimates; the uncertainty of
estimates and projections relating to production, costs and expenses; and
health, safety and environmental risks), uncertainty as to the availability of
labour and services, commodity price and exchange rate fluctuations, unexpected
adverse weather conditions, general business, economic, competitive, political
and social uncertainties, capital market conditions and market prices for
securities and changes to existing laws and regulations. Certain of these risks
are set out in more detail in Manitok's current Annual Information Form, which
is available on Manitok's SEDAR profile at www.sedar.com. 


Forward-looking statements are based on estimates and opinions of management of
Manitok at the time the statements are presented. Manitok may, as considered
necessary in the circumstances, update or revise such forward-looking
statements, whether as a result of new information, future events or otherwise,
but Manitok undertakes no obligation to update or revise any forward-looking
statements, except as required by applicable securities laws.


Non-GAAP Financial Measures

This press release contains references to measures used in the oil and natural
gas industry such as "funds from operations", "funds from operations netback",
"funds from operations per share", "operating netback", "working capital
deficit", and "net debt". These measures do not have standardized meanings
prescribed by generally accepted accounting principles ("GAAP") an, therefore
should not be considered in isolation. These reported amounts and their
underlying calculations are not necessarily comparable or calculated in an
identical manner to 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. These measures have been described and presented in
this press release in order to provide shareholders and potential investors with
additional information regarding the Corporation's liquidity and its ability to
generate funds to finance its operations. 


Funds from operations should not be considered an alternative to, or more
meaningful than, cash provided by operating, investing and financing activities
or net earnings as determined in accordance with GAAP, as an indicator of
Manitok's performance or liquidity. Funds from operations is used by Manitok to
evaluate operating results and Manitok's ability to generate cash flow to fund
capital expenditures and repay indebtedness. Funds from operations or funds from
operation netback denotes cash flow from operating activities as it appears on
the Corporation's Statement of Cash Flows before decommissioning expenditures
and changes in non-cash operating working capital. Funds from operations or
funds from operations netback is also derived from net income (loss) plus
non-cash items including deferred income tax expense, depletion and depreciation
expense, exploration and evaluation expense, impairment expense, stock-based
compensation expense, accretion expense, acquisition-related expenses,
unrealized gains or losses on financial instruments and gains or losses on asset
divestitures. Funds from operations netback is calculated on a per boe basis and
funds from operations per share is calculated as funds from operations divided
by the weighted average number of common shares outstanding. Operating netback
denotes petroleum and natural gas revenue and realized gain (loss) on financial
instruments less royalty expenses, operating expenses and transportation and
marketing expenses calculated on a per boe basis. Working capital deficit
includes current assets less current liabilities excluding the current portion
of the amount drawn on the credit facilities, the fair value of financial
instruments and the deferred premium on financial instruments. Manitok uses net
debt as a measure to assess its financial position. Net debt includes current
assets less current liabilities excluding the current portion of the fair value
of financial instruments and the deferred premium on financial instruments. 


Barrels of Oil Equivalent

The term barrels of oil equivalent ("boe") may be misleading, particularly if
used in isolation. Per boe amounts have been calculated using a conversion ratio
of six thousand cubic feet (6 mcf) of natural gas to one barrel (1 bbl) of crude
oil. The boe conversion ratio of 6 mcf to 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that the value ratio
based on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be misleading as an indication of value. 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Manitok Energy Inc.
Massimo M. Geremia
President & Chief Executive Officer
403-984-1751
[e-mail]
www.manitokenergy.com