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REGINA, SK / ACCESSWIRE / August 8, 2022 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK) is pleased to provide an operations update for its Southeast Saskatchewan drilling program. The Company has successfully completed the drilling of 4 gross (3.55 net) operated locations. The Company will initiate a second phase of drilling operations scheduled to begin mid August, with additional horizontal wells planned in Southeast Saskatchewan.
Current corporate production is estimated at 3,300 boepd (72% Oil & NGLs), a production milestone that has been reached ahead of schedule on the way to a targeted 3,500 boepd (72% Oil & NGLs) 2022 exit. ROK remains focused on growing free cash flow and paying down debt, and in light of the positive results to date, the Company has revised its forecast of 2022 exit net debt to $26 million (net of working capital), a 13% improvement from its May 9, 2022 forecast.
Phase one of the drilling program was highlighted by a horizontal Frobisher well (100% WI) at Florence that has yielded an IP30 rate greater than 300 boepd (92% Oil & NGLs), exceeding the current type curve by 53%. At Gainsborough, a successful Frobisher horizontal well (85% WI) has been equipped for production and is expected to be on stream by mid August. The company also drilled a successful horizontal well (70% WI) at Workman, which is currently being tested. At Steelman, ROK drilled, cored and tested a vertical discovery well, which produced oil from the Frobisher formation and sets up offsetting horizontal development.
All new growth volumes added as a result of the Phase one and upcoming Phase two drilling programs are unhedged. As outlined in a previous release from March 17, 2022, the Company has hedged ~75% of its base PDP volumes at weighted average swap prices over the 24 month period concluding in March 2024 at US$93.61/bbl WTI and US$4.09/Mmbtu Natural Gas, respectively.
ROK continues to focus on rapid organic growth and will report results of the second phase of the drilling program as it becomes available later in Q3 2022.
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.
barrels per day
barrels of oil equivalent
barrels oil equivalent per day
Natural Gas Liquids
Thousands of barrels of oil equivalent
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Million British thermal unit
Proved Developed Producing
Total Proved Reserves
Total Proved and Probable Reserves
International Financial Reporting Standards as issued by the International Accounting Standards Board
30 Day initial daily production rate
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.