Manitok Energy Inc. reported unaudited consolidated operating and financial results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported average production increased by 55%, year over year, to 5,556 boe/d (38% light oil and liquids) as compared to 3,587 boe/d (49% light oil and liquids) in the second quarter of 2016. Recorded negative funds from operations of $92,000 in the second quarter of 2017 as compared to negative funds from operations of $244,000 in the second quarter of 2016. The second quarter of 2017 included an $0.8 million one-time cash payment related to the amended Lease Issuance and Drilling Commitment Agreement ("LIDCA"), which contributed to the $32.0 million reduction in Manitok's capital commitment over 2017 and 2018 as discussed below. Operating netback excluding the realized gain (loss) on financial instruments was $8.76/boe as compared to $2.45/boe in the second quarter of 2016. Funds from operations netback per share was $1.82 against negative of $0.74 in the same period of 2016.

For the six months, the company reported average daily production of 5,926 boe/d as compared to 3,997 boe/d for the same period of last year. Operating netback was $8.79/boe as compared to $25.98/boe in the same period of 2016. Funds from operations netback per share was $2.78 against $17.58 in the same period of 2016.

For the quarter, the company reported petroleum and natural gas revenue of $15,352,000 against $8,849,000 for the same period of last year. Net loss was $8,549,000 or $0.03 per diluted share against $7,354,000 or $0.04 per diluted share for the same period of last year. Capital expenditures, net of divestitures was $2,212,000 against $3,260,000 for the same period of last year.

For the six months, petroleum and natural gas revenue of $32,314,000 against $17,923,000 for the same period of last year. Funds from operations was $1,850,000 or $0.01 per diluted share against $12,791,000 or $0.08 per diluted share for the same period of last year. Net loss was $12,375,000 or $0.05 per diluted share against $3,752,000 or $0.02 per diluted share for the same period of last year. Capital expenditures, net of divestitures was $4,419,000 against $9,426,000 for the same period of last year. As at June 30, 2017, net bank debt was $40.3 million and net debt was $73.4 million, which includes senior secured notes and long-term financial obligations against net bank debt of $45.55 million and net debt of $60.45 million for the same period of last year.