REGINA, SK – ROK Resources Inc. (“ROK” or the “Company“) (TSXV:ROK) has filed its interim Financial Results and Management Discussion & Analysis for the three and six months ended June 30, 2022.
Financial and Operating Highlights
In Q2 2022, the Company realized production volume of 277,877 total boe (3,054 boe/d), resulting in crude and natural gas sales of $28.7 million and operating income of $18.3 million after royalties and operating expenses. This equates to an operating netback per boe of $65.99 and an operating income profit margin of 63.9%. This is the first full quarter since the closing of the FCL Acquisition, as defined from the previous release dated March 7th, 2022.
Financial | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | ||||||||||||
Net income (loss) | (1,460,541 | ) | (386,529 | ) | 70,299,205 | (758,216 | ) | |||||||||
Basic ($/share) | (0.01 | ) | (0.01 | ) | 0.48 | (0.01 | ) | |||||||||
Diluted ($/share) | (0.01 | ) | (0.01 | ) | 0.47 | (0.01 | ) | |||||||||
Funds flow | 17,200,967 | (117,689 | ) | 19,580,003 | (315,036 | ) | ||||||||||
Basic ($/share) | 0.09 | (0.00 | ) | 0.13 | (0.01 | ) | ||||||||||
Diluted ($/share) | 0.09 | (0.00 | ) | 0.13 | (0.01 | ) | ||||||||||
Expenditures on property, plant and equipment | 4,449,920 | 83,933 | 4,496,823 | 115,232 | ||||||||||||
Operating | ||||||||||||||||
Operating Income | ||||||||||||||||
Oil and Natural Gas Sales | 28,710,012 | 709,209 | 36,831,890 | 1,149,236 | ||||||||||||
Royalties | (4,593,258 | ) | (136,277 | ) | (5,882,316 | ) | (220,469 | ) | ||||||||
Operating Expenses | (5,781,028 | ) | (265,088 | ) | (7,625,159 | ) | (480,653 | ) | ||||||||
Total ($) | 18,335,726 | 307,844 | 23,324,415 | 448,114 | ||||||||||||
Average daily production | ||||||||||||||||
Crude oil (bbl/d) | 2,085 | 98 | 1,376 | 81 | ||||||||||||
NGLs (boe/d) | 179 | 35 | 124 | 38 | ||||||||||||
Natural gas (mcf/d) | 4,740 | 201 | 3,023 | 233 | ||||||||||||
Total (boe/d) | 3,054 | 166 | 2,003 | 158 | ||||||||||||
Operating Netback per boe | ||||||||||||||||
Oil and Natural Gas Sales | 103.32 | 46.96 | 101.60 | 40.20 | ||||||||||||
Royalties | (16.53 | ) | (9.02 | ) | (16.23 | ) | (7.71 | ) | ||||||||
Operating Expenses | (20.80 | ) | (17.55 | ) | (21.03 | ) | (16.81 | ) | ||||||||
Operating Netbacks ($/boe) | 65.99 | 20.39 | 64.34 | 15.68 | ||||||||||||
Operating Income Profit Margin | 63.9 | % | 43.4 | % | 63.3 | % | 39.0 | % | ||||||||
Share information | ||||||||||||||||
Common shares outstanding, end of period | 195,160,585 | 74,471,576 | 195,160,585 | 74,471,576 | ||||||||||||
Weighted average basic shares outstanding | 189,352,095 | 64,688,609 | 146,999,083 | 61,909,283 | ||||||||||||
Weighted average diluted shares outstanding | 197,548,079 | 64,688,609 | 150,094,930 | 61,909,283 |
Net Debt
Reductions of Net Debt from $45.8 million as at March 31, 2022, to $38.4 million as at June 30, 2022, is a result of organically generated funds flows utilized to reduce Company indebtedness. ROK uses “Net Debt” as a measure of the Company’s financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS.
June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||
Senior Loan Facility (12.75%) | 58,298,629 | 62,549,849 | – | |||||||||
Debt Notes (14%) | – | – | 4,000,000 | |||||||||
Less: adjusted working capital | 19,912,783 | 16,750,311 | 478,610 | |||||||||
Net debt | 38,385,846 | 45,799,538 | 3,521,390 |
Complete reports and statements are available on SEDAR at www.sedar.com and on the Company website at www.rokresources.ca.