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ROK Resources Provides an Update on Drilling Program and Appointment of President
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 Provides an Update on Drilling Program and Appointment of PresidentNOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATESREGINA, SK / ACCESSWIRE / September 19, 2023 / ROK Resources Inc. (\"ROK\" or the \"Company\") (TSXV:ROK)(TSXV.ROK.WT)(OTCQB:ROKRF) is pleased to provide an operations update for phase one of its Southeast Saskatchewan drilling program, consisting of 5 gross (4.9 net) operated wells. The Company will initiate the second phase of its drilling program in early October, which will include 5 gross (4.42 net) operated wells in Southeast Saskatchewan and 1 gross (0.3 net) non-operated well in Kaybob Alberta.The Company remains focused on increasing free cash flow through organic growth and the development of its vast light oil resources in Saskatchewan and Alberta. The Company will report the results of the second phase of its drilling program as it becomes available in Q4 2023.Operational HighlightsPhase One Drilling Program Complete: Successfully drilled 5 gross (4.9 net) operated wells in Southeast Saskatchewan, targeting Mississippian light oil with 100% success rate.Production of 3,900 boepd: Current estimated field production of 3,900 boepd (65% Oil and NGLs), which represents an increase of 18% compared to Q2 2023 average of 3,297 boepd. This does not include 200 boepd (80% natural gas) at Kaybob Alberta, which is currently down on gas plant turnaround and expected to be on-stream in early October. Nor does this figure include 2 wells, as described below, that are awaiting tie-in. The Company continues to target a 2023 exit production rate of 4,500 boepd.Two Wells Awaiting Complete and Tie-In: Of the 5 gross wells drilled, only 3 gross wells are currently on-stream, with the remaining 2 gross wells expected to be on production within the next couple of weeks.Type Curve Economics: On average, the 3 new gross wells are on trend to exceed IP30 type curves by approximately 30%.Capital Expenditures: Estimated capital expenditures of $13 million, which puts the Company in-line with 2023 budget guidance of $30 million.Net Debt: The Company remains in-line with estimated 2023 exit net debt of $16 - $17 million, before inclusion of any mark-to market fair value of any existing Company hedge positions.New production volumes from the phase one drilling program remain unhedged a...