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ROK Resources Provides 2022 Operations Outlook
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES REGI...
About this update from Rok Resources, Inc. Class B
[{"type":"text","content":"ROK Resources Provides 2022 Operations OutlookNOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATESREGINA, SK / ACCESSWIRE / May 9, 2022 / ROK Resources Inc. (\"ROK\" or the \"Company\") (TSXV:ROK) is pleased to provide capital budget and production guidance for the remainder of 2022. ROK is focused on growing free cash flow, paying down debt and commencing a Southeast Saskatchewan focused drilling and workover program.Capital BudgetTotal capital expenditures of $18.2 million, which include:$10.5 million allocated to Drilling, Completing and Equipping of 10 Gross (9 Net) oil wells$1.5 million allocated to workovers of 12 Gross (9.5 Net) oil wells and 3 Gross (3 Net) gas wellsDrill program expected to commence before end of Q2, 2022, with areas of focus including Steelman, Workman, Florence, Gainsborough and CarnduffProduction & Estimated Net Operating IncomeForecast 2022 exit production rate ~3,500 Boepd (73% oil + natural gas liquids), representing an ~18% increase from April production levelsUsing a combination of the Company's hedged volume pricing1 and current strip pricing, estimated net operating income for the period April - December (Q2, Q3, Q4) 2022 of $50 million2 ($67 million annualized)The Company expects to exit 2022 with less than $30 million of debt (net of working capital), which would represent a ~40% debt reduction from current levelsHedge volumes and pricing as referenced in the press release dated March 17, 2022. The hedging program represents 75% of ROK's declining proved developed producing reserves, evaluated by McDaniel effective April 1, 2022.Net operating income defined as net sales revenue less operating costs less transportation costs less royalties.About ROKROK is primarily engaged in exploring for petroleum and natural gas development activities in Alberta and Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK's common shares are traded on the Exchange under the trading symbol \"ROK\".For further information, please contact:Cameron Taylor, Chairman and CEOJared Lukomski, Senior Vice President, Land & Business DevelopmentPhone: (306) 522-0011Email: [email protected] DisclosureThe term barrels of oil equivalent (\"boe\") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per b...