Rok Res Inc Stock Price, News & Analysis

ROK Resources (TSXV:ROK)(OTCQB:ROKRF) has announced key leadership changes and 2024 financial results. The company promoted Bryden Wright to President and CEO, with Cameron Taylor transitioning to Executive Chairman. David French, a seasoned financial executive, joined the Board of Directors.

Key 2024 financial highlights include:

• 43% reduction in Adjusted Net Debt to $10.6 million
• Funds from Operations of $31.4 million, exceeding forecast by 5%
• Average daily production of 3,992 boepd (66% liquids), representing 3% growth despite 37% CAPEX reduction
• 4% increase in total proved oil reserves and 5% increase in proved plus probable reserves

Financial results show net loss of $636,413 for 2024, compared to $11 million loss in 2023. Oil and natural gas sales reached $85.2 million, with operating income of $25.9 million and funds from operations of $31.4 million.

ROK Resources (TSXV:ROK)(OTCQB:ROKRF) has announced its 2025 capital budget and guidance, focusing on disciplined development of conventional light oil prospects in Southeast Saskatchewan. The company outlines a flexible approach based on commodity prices:

If prices remain stable, ROK will:

• Maintain stable production
• Direct Funds from Operations to reduce debt

If prices improve, ROK will:

• Pursue more robust development
• Maximize Funds from Operations through core plays delineation
• Maintain balance sheet resilience

Key 2025 budget highlights include:

• Development starting late Q2 2025
• ~75% of capex for drilling, completion, equipping, tie-in and production optimization
• Focus on Conventional Frobisher drilling
• Multi-lateral Midale prospects exploitation
• State A Frobisher open hole multi-lateral well drilling
• Southeast Saskatchewan Midale waterflood project initiation

ROK Resources reported significant achievements in 2024, including a 43% reduction in Adjusted Net Debt to $10.6 million. The company outperformed its guidance with $31.6 million in Funds from Operations, a 6% increase from internal forecasts. Annual average production reached 3,992 boepd (66% liquids), representing 3% growth compared to 2023.

The company's 2024 drilling program focused on light oil prospects in Southeast Saskatchewan, exceeding internal type curves by over 20%. Reserve evaluation highlights include total proved basic NAV of $0.56/share and total proved plus probable basic NAV of $1.03/share, showing increases of 10% and 3% respectively compared to 2023. The corporate decline rate improved from 23% to 21% year over year, with a 4% increase in TP Light and Medium Oil reserves and 5% increase in TPP Light and Medium Oil reserves.

ROK Resources reported Q3 2024 financial results with production averaging 3,773 boepd (71% liquids). The company drilled 2 gross wells in Saskatchewan, with one well achieving IP30 of 240 boepd (85% liquids). Net income reached $10 million, compared to a loss of $7.7 million in Q3 2023. The company sold a non-core asset for $4 million, using proceeds to reduce debt. Year-end 2024 Adjusted Net Debt estimate was revised down 24% to $12.6 million. Operating costs improved 10% year-over-year to $33.71 per boe. Capital expenditures totaled $3.0 million in Q3, with $2.2 million allocated to drilling programs.

ROK Resources Inc. (TSXV:ROK)(OTCQB:ROKRF) has announced its 2024 drilling results and updated guidance. The company has successfully drilled 6 gross (4.95 net) wells, with two of them being among the best oil wells drilled in Saskatchewan in July 2024. These wells averaged over 250 boepd IP30 and 230 boepd IP60. The company plans to drill an additional 3 gross (3 net) wells in 2024.

ROK has revised its 2024 guidance, reducing capital expenditures by 17% to $20 million, while average production is expected to decrease by only 4% to 4,000 boepd. The company has also completed a share exchange with EMP Metals Corp., acquiring a 17.11% basic ownership in EMP Metals.

ROK Resources Inc. (TSXV:ROK)(OTCQB:ROKRF) has filed its Q2 2024 financial results and provided an operations update. Key highlights include:

• Production averaged 3,937 boepd (63% liquids), a 19.4% YoY increase
• Operating Netback improved to $17.87 per boe
• Successful drilling of 4 gross (3.44 net) wells with average IP30 of 148 boepd
• Adjusted Net Debt reduced to $15.1 million
• Credit facility renewed at $22.5 million through June 30, 2025

The company remains on track with its 2024 guidance, expecting to drill 7-9 gross wells in H2 2024. ROK's focus is on strategic opportunities, operational efficiencies, and cost reduction measures. The company has temporarily shut-in 300 boepd in Kaybob, Alberta due to soft natural gas markets.

ROK Resources Inc. (TSXV:ROK)(OTCQB:ROKRF) has entered into a Share Exchange Agreement with EMP Metals Corp., exchanging its common shares of Hub City Lithium Corp. for 17,085,000 common shares of EMP Metals. This will result in ROK owning approximately 17.11% of EMP Metals. The exchange is expected to have no tax implications due to 85(1) rollover provisions.

Additionally, ROK has entered into a Management Agreement with Hub City Lithium, receiving 1,840,000 EMP Metals shares for managing operational objectives for one year. ROK has also commenced a two-well lithium drilling and testing program in the Viewfield area of Saskatchewan, aimed at delineating the original discovery and providing data for future engineering studies and reservoir modeling.

ROK Resources has announced its strategic direction for the second half of 2024. The company aims to enhance shareholder value through the development of conventional light oil prospects in Southeast Saskatchewan. Key points include a reduction in capital expenditures to $24-$25 million, a target average daily production rate of 4,100-4,200 boepd, and a stable adjusted net debt of $19-$20 million. The drilling program includes 13 gross wells and 2-3 multi-lateral wells in core areas. Despite the softening of the North American natural gas markets, ROK has shut-in 280 boepd in Kaybob, Alberta, with reactivation expected in Q4 2024. The company also maintains a strong natural gas hedge program with an estimated gain of $1.0-$1.5 million CAD.

ROK Resources (TSXV:ROK)(OTCQB:ROKRF) released its financial results for Q1 2024, highlighting an average daily production of 4,278 boepd, a 62% increase in liquids. Operating costs per boe were reduced by 18% to $27.55. The company reported a net income loss of $5.6 million, down from a net income of $0.8 million in Q1 2023. Funds from operations dropped from $13.3 million to $8.0 million. The company reduced its adjusted net debt from $18.7 million to $14.4 million. Capital expenditures totaled $1.8 million, focusing on well reactivations and infrastructure. Key initiatives for 2024 include a $10 million drilling program targeting Frobisher light oil and a focus on reducing corporate costs.