REGINA, SK – ROK Resources Inc. (“ROK” or the “Company“) (TSXV:ROK) is pleased to announce the completion of an independent reserves evaluation of its recently acquired Florence Asset, effective August 31st, 2021, in compliance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and in accordance with the Canadian Oil and Gas Evaluation Handbook (the “Florence Property Report”).
The Florence Property Report does not include the Company’s existing corporate reserve base at Glen Ewen, which was evaluated at December 31st, 2020 by GLJ and press released on February 24th, 2021.
Florence Property Report
The Florence Property Report, prepared by Sproule Associates Limited (“Sproule”), evaluated assets in Southeast Saskatchewan (the “Florence Asset”) that ROK acquired effective April 1st, 2021 for cash consideration of $4.0 million plus 4,250,000 ROK Class B Common Shares. The net present value of net future revenues, (net of royalties, operating costs, and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% (“NPV 10%”) of the total proved plus probable reserves is estimated at $16.2 million, or $0.22 per outstanding basic share.
Summary of Gross Oil and Gas Reserves and Net Present Value of Revenue:
Before Income Taxes as of August 31, 2021 – Forecast Prices and Costs
NPV 10% |
NPV per Boe1 |
|
Proved Developed Producing |
$1.94 |
$22.83 |
Total Proved |
$7.22 |
$20.46 |
Proved Plus Probable |
$16.18 |
$22.88 |
- Florence Property Report used Sproule price forecast effective August 31, 2021
Summary of Florence Property Report Gross Oil and Gas Reserves:
Light & Medium Oil |
Natural |
Natural Gas Liquids |
Total Boe |
|
RESERVES CATEGORY |
Mbbl |
MMcf |
Mbbl |
Mboe |
Proved Developed Producing |
71.6 |
41 |
6.5 |
84.9 |
Proved Non- Producing |
0 |
0 |
0 |
0 |
Proved Undeveloped |
227.3 |
124 |
19.9 |
267.8 |
Total Proved |
298.9 |
164 |
26.5 |
352.8 |
Probable |
300.5 |
165 |
26.5 |
354.6 |
Proved Plus Probable |
599.5 |
329 |
53 |
707.3 |
Natural Gas: 6.0 Mcf/boe
Qualified Person
The technical content of this news release has been reviewed and approved by Bryden Wright, P. Eng., a qualified person for the purpose of National Instrument 41-101.