NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESSWIRE / July 7, 2021 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK) As per previous press releases, ROK has completed a series of acquisitions including the acquisition of producing assets in the Glen Ewen area effective June 2020 and the Florence area effective April 2021. Total consideration for the acquisitions was $4,835,000. As of May 2021, these assets are producing an estimated 240 Boepd. The recent $6.2 million equity and secured note financing has financed these recent acquisitions and is expected to fund the drilling of two farmin wells to earn 35% of the Carievale prospect.
The Company is now pleased to announce their upcoming development program. The Company intends to drill 6 gross (4.53 net) development locations and perforate an untested zone in an existing wellbore. All seven operations will test a separate prospect directly offsetting existing production and have potential for additional development drilling offsetting these initial tests. Independent third party reserve evaluators have attributed an initial production rate of 175 Boepd for the Glen Ewen 10-9-2-34W1 location, which is typical of Frobisher performance throughout the Glen Ewen and Florence area.
The first Carievale farm-in well and the perforation of the existing well are both scheduled for late July. Additional locations in the program are expected to be drilled over the balance of 2021.
Of the 6 wells planned, only 3 locations have attributed reserves within the Company's year-end 2020 reserve report. Each successful well is expected to prove up additional development drilling locations and be accretive to production, cash flow and future reserves bookings.
Cam Taylor, CEO & Chairman, stated, "With oil prices showing significant strength, we are very pleased to begin drilling these high impact development locations. Success on any one of these seven prospects has the ability to significantly impact the Company. The recent acquisitions have provided the Company with a strong platform of reserves and infrastructure. Now we can begin to focus on rapidly growing production and cash flow with this set of low risk drilling locations."
ROK is engaged in exploring for petroleum and natural gas development activities in Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK's common shares are traded on the TSX Venture Exchange under the trading symbol "ROK".
For further information, please contact:
Cameron Taylor, Chairman and CEO
Lynn Chapman, CFO
Phone: (306) 522-0011
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 with respect to pursuing the drilling opportunities identified herein and the intended use of the proceeds from the financings described herein. Forward-looking statements are necessarily based on a number of 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; 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 as a result of new information, future events, or otherwise.
Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Any estimate of reserves and future net revenue referenced herein for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
Oil and Gas Disclosures
Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes. The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf:1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
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.
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