ROK Resources Announces Sale of Non-Core Southeast Saskatchewan Asset
Rhea-AI Summary
ROK Resources (OTCQB:ROKRF) agreed to sell certain non-core Southeast Saskatchewan assets for $8 million in cash, subject to adjustments. The assets are forecast to produce 280 boepd (97% liquids) over the next 12 months, about 8% of 2026 average production.
The sale price is above NPV10 of proved developed producing reserves and equates to roughly $28,571 per flowing boe. ROK retains 97% of its drilling inventory, while corporate ARO falls 16% and non-operated ARO spend declines about 50% annually. Closing is targeted by July 31, 2026, with an effective date of June 1, 2026.
Positive
- Cash proceeds of $8 million from non-core asset sale
- Sale metrics above NPV10 of proved developed producing reserves
- Transaction value about $28,571 per flowing boe based on NTM production
- Retention of 97% of drilling inventory after divesting 3.5 locations
- Corporate asset retirement obligations reduced by 16%
- Non-operated ARO spend cut by about 50% annually
Negative
- Loss of forecast 280 boepd, about 8% of 2026 average production
- Divestiture of 3.5 proved plus probable drilling locations
- Closing still pending customary conditions and regulatory approvals
News Market Reaction – ROKRF
In the Jun 23 session, ROKRF gained 0.46%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESS Newswire / June 23, 2026 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) is pleased to announce that it has entered into an asset purchase and sale agreement dated June 22, 2026 (the "Agreement") with an arms length third party (the "Purchaser") for the disposition of certain non-core assets located in Southeast Saskatchewan (the "Assets").
Pursuant to the Agreement, ROK will receive cash consideration of
In the next twelve months, as of June 2026, the Assets are expected to produce 280 boepd (
"The Transaction represents another step in ROK's ongoing strategy of optimizing its portfolio and allocating capital toward opportunities expected to generate meaningful returns for shareholders," said Bryden Wright, President and Chief Executive Officer.
Transaction Highlights
Strategic divestiture of non-operated assets with limited upside
Increases ROK's focus on core operated assets with capital allocation scheduled in 2026
Divestiture of 3.5 proved plus probable drilling locations with ROK retaining
97% of its drilling inventory for future development
Attractive metrics accelerates value for ROK shareholders
Cash consideration of
$8 million represents a premium to NPV10(1) of proved developed producing reservesTransaction value of approximately
$28,571 per flowing barrel of oil equivalent based on forecasted next twelve months of productionBolsters ROK's cash position and provides flexibility for additional capital development, acquisitions and/or capital return to shareholders
Significant reduction in corporate asset retirement obligations ("ARO")
Divestiture of the Assets reduces ROK's total corporate ARO by
16% Reduces ROK's non-operated ARO spend by approximately
50% annually, allowing the Company to focus on operated retirement obligations
Notes to Reader:
Internal reserve evaluation utilizing strip pricing as of June 15, 2026
Transaction Details
The Transaction has an effective date of June 1, 2026 and is expected to close on or before July 31, 2026, subject to customary closing conditions and receipt of all required regulatory approvals. The Transaction is not subject to any financing condition.
Advisors
Peters & Co. Limited acted as exclusive financial advisor to ROK in connection with the Transaction. McDougall Gauley LLP acted as legal counsel to the Company.
About ROK Resources Inc.
ROK is a Canadian energy company engaged in the exploration, development and production of petroleum and natural gas assets in Saskatchewan and Alberta. The Company is headquartered in Regina, Saskatchewan, with an additional office in Calgary, Alberta. ROK's common shares trade on the TSX Venture Exchange under the symbol "ROK".
For further information, please contact:
Bryden Wright, President and Chief Executive Officer
Jared Lukomski, Senior Vice President, Land & Business Development
Phone: (306) 522-0011
Email: investor@rokresources.ca
Website: www.rokresources.ca
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals, or future plans as a result of the Transaction. Forward-looking statements are necessarily based on several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include but are not limited to general business, economic and social uncertainties; the accuracy of well testing results; litigation, legislative, environmental, and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether because of new information, future events, or otherwise.
Abbreviations
boepd | barrels oil equivalent per day | |
NPV PDP | Net Present Value Proved Developed Producing | |
WTI | West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade |
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
View the original press release on ACCESS Newswire