REGINA, SK – 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.