Doug Suttles of Encana speaks to the media after the company announced him as the new president and CEO in Calgary, Alberta, June 11, 2013.Todd Korol/Reuters
Manitok Energy Inc. is acquiring additional petroleum and natural gas leases in southeast Alberta from Encana Corp.
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 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.