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ROK Resources Inc. Confirms Closing of Strategic Southeast Saskatchewan Asset Acquisition, Credit Facility and Provides First-Half 2023 Guidance
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES REGINA, S...
About this update from Rok Resources, Inc. Class B
[{"type":"text","content":"ROK Resources Inc. Confirms Closing of Strategic Southeast Saskatchewan Asset Acquisition, Credit Facility and Provides First-Half 2023 GuidanceNOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATESREGINA, SK / ACCESSWIRE / January 24, 2023 / ROK Resources Inc. (\"ROK\" or the \"Company\") (TSXV:ROK)(TSXV:ROK.WT) is pleased to announce that it has successfully closed the acquisition previously announced on December 19, 2022 (the \"Acquisition\") of the assets (1,400 Boepd at closing) located in ROK's core operating area of Southeast Saskatchewan (the \"Assets\"), in exchange for total consideration of approximately $23 million CAD in cash consideration after closing adjustments and approximately 400 boepd of non-core, Southwest Saskatchewan assets.The Acquisition was funded through the previously announced $75 million CAD senior loan facility (the \"Senior Loan Facility\"), which is comprised of a $52.5 million term facility (the \"Term Facility\") carrying a 2-year term and interest rate of BA plus 6.25% and a $22.5 million syndicated facility (the \"Syndicated Facility\") with a sliding scale interest rate, currently set as BA plus 3.75%. The term loan carries a monthly principal payment requirement of $2 million and has no prepayment penalty. The Company's previous loan facility with Anvil Channel Energy Solutions has been repaid in full and replaced with the Senior Loan Facility, resulting in an interest cost reduction in excess of 30%.Highlights & Strategic RationaleThe Acquisition is aligned with ROK's long-term business strategy of responsible exploration and development, complemented by strategic acquisitions of diversified and sustainable assets in favorable operating areas. Additional highlights include:All-cash transaction provides debt adjusted accretion of >15% 2023 cash flow per share and >75% TPP Reserves per share.High quality land positions (48,720 net acres) located in the Pinto, Steelman & Gainsborough areas of Southeast Saskatchewan.Significant booked reserve base (65+ net drilling locations) and long-term resource development upside, adding 18 years of reserve life, not including secondary recovery from future waterflood applications.Stable base production, currently producing approximately 1,400 boepd (69% Liquids).Integrated operations enable low-cost structures (...