Manitok Energy Inc. announced initial drilling results for Light Oil in Stolberg. The first Stolberg Cardium oil well in Manitok's current drilling program was drilled in late 2011 and completed in January 2012. Manitok has a 68% working interest in this first well. It is a vertical exploration well which successfully intersected a new sweet Cardium light oil pool. As anticipated, the characteristics of the reservoir of the new pool are similar to the producing Cardium oil wells to the north of this well. The zone was perforated and produced at an unstimulated, stable rate of 145 bbls/d of light oil over a 36 hour test period. Based on production test rates and open-hole log data, Manitok believes that currently, there may be some reservoir flow impedance due to normal course drilling operations. The well has now been shut-in in order to collect pressure data and to design a fracture stimulation program to reduce any reservoir flow impedance. The unstimulated rate is consistent with results from some wells to the north, which have historically produced 200 to 500 Mbbl of oil to date. Manitok anticipates that the well will be fracture stimulated and placed on production before the end of March 2012. Manitok has also just finished drilling its second Cardium oil well in which Manitok has an 86% working interest. The horizontal well was drilled under-balanced. During the drilling of the horizontal leg, there was an inflow of natural gas and light oil over a brief period. Results to date are encouraging. Manitok anticipates that completion operations and production testing will begin as soon as services can be acquired over the next few weeks. Manitok expects to spud the third Cardium oil well in March. The company expects to exit 2012 with approximately 3,300 - 3,400 boe/d with approximately 55 - 60% oil and liquids. This expectation has been revised from the previously announced 2012 exit rate of 3,700 - 3,800 boe/d, with approximately 40 - 45% oil and liquids, mainly due to the removal of 2 (1.86 net) liquids rich Mannville natural gas wells, each of which had an expected initial production rate of approximately 750 boe/d, from the capital budget and replacing them with 5 (3.4 net) Cardium oil wells, each of which have an anticipated initial production rate of approximately 265 bbls/d, post fracture stimulation. Average 2012 production is expected to be approximately 2,725 boe/d with about 39% oil and liquids. Current average production is approximately 2,350 boe/d with about 23% oil and liquids. The company's board of directors has approved a $42 million budget for 2012. The budget expectation for 2012 cash flow is approximately $22.5 to $23 million. The budget expectation for 2012 cash flow is approximately $22.5 to $23 million. The company expects its current cash flow to increase from approximately $900,000 per month to approximately $3.5 million per month by the end of 2012. Expected debt at December 31, 2012 will be approximately $24.5 to $25 million.