NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESSWIRE / May 9, 2022 / ROK Resources Inc. ('ROK' or the 'Company') (TSXV:ROK) is pleased to provide capital budget and production guidance for the remainder of 2022. ROK is focused on growing free cash flow, paying down debt and commencing a Southeast Saskatchewan focused drilling and workover program.
- Total capital expenditures of $18.2 million, which include:
- $10.5 million allocated to Drilling, Completing and Equipping of 10 Gross (9 Net) oil wells
- $1.5 million allocated to workovers of 12 Gross (9.5 Net) oil wells and 3 Gross (3 Net) gas wells
- Drill program expected to commence before end of Q2, 2022, with areas of focus including Steelman, Workman, Florence, Gainsborough and Carnduff
Production & Estimated Net Operating Income
- Forecast 2022 exit production rate ~3,500 Boepd (73% oil + natural gas liquids), representing an ~18% increase from April production levels
- Using a combination of the Company's hedged volume pricing1 and current strip pricing, estimated net operating income for the period April - December (Q2, Q3, Q4) 2022 of $50 million2 ($67 million annualized)
- The Company expects to exit 2022 with less than $30 million of debt (net of working capital), which would represent a ~40% debt reduction from current levels
- Hedge volumes and pricing as referenced in the press release dated March 17, 2022. The hedging program represents 75% of ROK's declining proved developed producing reserves, evaluated by McDaniel effective April 1, 2022.
- Net operating income defined as net sales revenue less operating costs less transportation costs less royalties.
ROK is primarily engaged in exploring for petroleum and natural gas development activities in Alberta and Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK's common shares are traded on the Exchange under the trading symbol 'ROK'.
For further information, please contact:
Cameron Taylor, Chairman and CEO
Jared Lukomski, Senior Vice President, Land & Business Development
Phone: (306) 522-0011
The term barrels of oil equivalent ('boe') may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Cautionary Statement Regarding Future Oriented Financial Information
This news release contains future oriented financial information ('FOFI') within the meaning of applicable securities laws. The FOFI has been prepared by our management to provide an outlook of our activities and results and may not be appropriate for other purposes. The FOFI has been prepared based on a number of assumptions including the assumptions discussed and described as forward-looking statements and assumptions with respect to estimated net operating income and debt figures. The actual results of our operations and the resulting financial results may vary from the forecast set forth herein, and such variation may be material. Our management believes that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements and the FOFI contained in this news release are made as of the date of this news release or the dates specifically referenced herein. All forward-looking statements and the FOFI contained in this news release are expressly qualified by this disclaimer and cautionary statement. Other than as required by applicable securities laws, the Company assumes no obligation to update forward-looking statements or the FOFI should circumstances or the Company's estimates or opinions change.
bbls/d - barrels per day
boe - barrels of oil equivalent
boe/d - barrels oil equivalent per day
NGLs - Natural Gas Liquids
Mboe - Thousands of barrels of oil equivalent
MMboe - Millions of barrels of oil equivalent
PDP - Proved Developed Producing
TP - Total Proved Reserves
TPP - Total Proved and Probable Reserves
IFRS - International Financial Reporting Standards as issued by the International Accounting Standards Board
WTI - West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain 'forward-looking statements' under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals, or future plans with respect to pursuing the objectives and the expectations regarding the expected results thereof. Forward-looking statements are necessarily based on several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include but are not limited to general business, economic and social uncertainties; litigation, legislative, environmental, and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether because of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
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