ROK Resources Provides Second-Half 2024 Guidance

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REGINA, SK / ACCESSWIRE / June 19, 2024 / ROK Resources Inc. (“ROK” or the “Company“) (TSXV:ROK)(OTCQB:ROKRF) is pleased to outline its strategic direction for the second half of 2024, aimed at enhancing shareholder value through the development of conventional light oil prospects in core operating areas of Southeast Saskatchewan.

	1H 2024 ¹	2H 2024	2024 Year
Capital Expenditures (MM)	$9.5	$14.5	$24.0
Daily Average Production (boepd) ²	4,000	4,300	4,150
Exit Production (boepd) ^2,3	4,000	4,600	4,600
Funds from Operations (MM)	$15.0	$16.0	$31.0
Adjusted Net Debt (MM)	$16.5	$20.0	$20.0
Average WTI (US$)	$78/bbl	$75/bbl	$76.50/bbl

2024 Guidance Summary

Notes:

Estimated prior to finalizing interim condensed financial statements for the six months ended June 30, 2024
64% liquids
1H 2024 exit production reduced by 280 boepd (80% natural gas) due to Kaybob, Alberta production shut-ins

2024 Guidance Highlights

Production Growth: Estimated 2024 average daily production rate of 4,100 boepd to 4,200 boepd (64% liquids) which exceeds 2023 daily average production rate of 3,876 boepd (62% liquids).
Reduction in Capital Expenditures: Total annual capital expenditures of $24 million to $25 million in 2024, a 25% decrease in annual capital expenditures when compared to 2023.
Stable Balance Sheet: 2024 exit Adjusted Net Debt of $19 million to $20 million, implying a debt to cash flow from operations ratio of 0.6x.
Core Area Drill Program: An estimated 13 gross (11.95 net) wells in Southeast Saskatchewan (75% – 85% Frobisher weighted assets), aimed at growing base reserves and future drilling inventory.
Midale Multi-Lateral Drilling: Drilling of 2 to 3 multi-lateral Midale wells to capitalize on Saskatchewan multi-lateral royalty incentive.
Strong Natural Gas Hedge Program: Total natural gas hedges of 1,094,563 MMBtu in 2H 2024 at an average price of $2.09/MMBtu, equating to an estimated hedge gain of $1.0 million to $1.5 million CAD at current strip pricing over this period.

Outlook

The Company is focused on using its current balance sheet to target strategic growth opportunities in core areas, while improving operational efficiencies through continued cost reduction measures. The drill program aims to add Frobisher drilling inventory in both new and existing areas, in addition to proving up Midale prospects with multi-lateral drilling.

Kaybob, Alberta Update

With the current softening of the North American natural gas markets, the Company has shut-in 280 boepd (80% natural gas) in its Kaybob, Alberta area. The strategic shut-ins are expected for the balance of Q3 2024 with reactivation expected in Q4 2024.

About ROK

ROK is primarily engaged in exploring for petroleum and natural gas development activities in Alberta and Saskatchewan. It has offices located in both Regina, Saskatchewan, Canada and Calgary, Alberta, Canada. ROK’s common shares are traded on the TSX Venture Exchange under the trading symbol “ROK”.