Rok Resources, Inc. Class B · TSXV:ROK
Rok Resources, Inc. Class B — Investor Presentation (April 2023)
30 slides from Rok Resources, Inc. Class B's investor presentation, Apr 3, 2023
Slide 1: Investor Presentation Spring 2023
INVESTOR PRESENTATION Spring 2023 A growth-oriented oil & gas company well-positioned to capitalize on the current commodity cycle
Slide 2: Company Profile | Snapshot
Company Profile | Snapshot ~4,5001 ~$45.91 ~$5.91 ~$7.51 2023E Exit 2023E NOI 2023E FCF 2023E Exit Net Debt Production (boe/d) ($ million) ($ million) ($ million) Recent Announcements Production Profile (at March 31, 2023) Kaybob ~3,750 Strategic Asset Strategic Asset Term Debt ~1,350 boe/d boe/d Ac
Slide 3: Experienced Leadership Team
Experienced Leadership Team Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil Corp., Villanova Cam Taylor Oil Corp. & Villanova Resources Inc. Mr. Taylor is a geoscientist with over 30 years of experience in Chairman & oil & gas exploration and development. Since graduati
Slide 4: Solid Track Record of Execution and Value Creation
Solid Track Record of Execution and Value Creation Management brings a solid track record of execution and value creation through the development, from infancy to the successful divestitures, of four successive companies generating shareholder returns of 3x Previous Experience 4 Successive Company E
Slide 5: Corporate Milestones
Corporate Milestones Average Average Average 3,054 ~3,850 ~4,120 boe/d boe/d boe/d Q1 2022 Q2 2022 Q3 2022 Q4 2022 H1 2023 H2 2023 Closed Results beat Drilled the best SE Sask. acquisition Strategic asset Execute organic transformational estimates well in New $75 million divestiture and drilling pro
Slide 6: Company Profile | Capitalization
Company Profile | Capitalization Capitalization Summary 50-day Moving Average (March 28, 2023) $0.41 TSXV: ROK Management & Basic Shares 212.6mm Board ~17% Public Warrants1 (ROK.WT) (Strike Price $0.25) 113.1mm Non-Public Warrants (Average Strike Price $0.32) 8.3mm Options (Average Strike Price $0.2
Slide 7: Company Profile | Corporate Guidance
Company Profile | Corporate Guidance US$73/B WTI US$70/B WTI US$80/B WTI US$80/B WTI US$76/B WTI Q1/20231 Q2/20232,3 Q3/20232 Q4/20232 Total 20232 Average Production ~4,175 boe/d ~3,530 boe/d ~3,730 boe/d ~4,500 boe/d ~3,985 boe/d Net Operating Income (NOI)4 $13.3mm $10.4mm $9.7mm $12.5mm $45.9mm Ca
Slide 8: Locations | High Quality Drilling Inventory
Locations | High Quality Drilling Inventory Target Gross # Booked Core Area1 Formations Sections Avg WI% Drilling Locations1,2 Pinto/Alameda Frobisher & Midale 45 85% 55 Glen Ewen/Florence Frobisher & Midale 26 85% 30 Benson/Steelman Frobisher & Midale 16 90% 4 Workman/Gainsborough Frobisher & Midal
Slide 9: Locations | Asset Overview
Locations | Asset Overview Acquired Lands ROK Existing Lands In 2023, ROK will focus on the development of core properties in SE Saskatchewan, including conventional Frobisher and unconventional Midale prospects 9 TSX.V: ROK
Slide 10: Southeast SK Assets | Frobisher
Southeast SK Assets | Frobisher Analogous Frobisher Production vs. Reserve & Forecast Curves US$70 WTI / US$80 WTI / US$90 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $1.0mm $1.0mm $1.0mm 350 EUR 68 mbbl 68 mbbl 68 mbbl NPV10% $1.4mm $2.1mm $2.7mm 300 Reserves Type Curve IRR (
Slide 11: Southeast SK Assets | Midale
Southeast SK Assets | Midale Analogous Frac'd Midale Production vs. Reserve & Forecast Curves US$70 WTI / US$80 WTI / US$90 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $1.7mm $1.7mm $1.7mm 300 EUR 75 mbbl 75 mbbl 75 mbbl NPV10% $1.1mm $1.7mm $2.4mm 250 Reserves Type Curve IRR
Slide 12: Opportunistic Use of Leverage
Opportunistic Use of Leverage Debt Facility Comparison ($mm / %) Announced $65mm senior secured loan facility with Monthly Blended Cash Outflows1 Cost of Debt Q1 2022 Anvil Channel Energy Solutions ("ACES") to fund the milestone acquisition of FCL assets 16% $2.6 $2.5 Announced new debt facility con
Slide 13: Value Proposition | Peer Comparison
Value Proposition | Peer Comparison1,2 Select Domestic Oil Weighted Producers 2023E EV/EBITDA (x) 2023E EV/MBOE/d ($/mboe/d) 6.0x $100.0 5.0x $80.0 4.0x $60.0 3.0x 2.4x $40.0 2.0x $24.0 1.0x $20.0 n/a 0.0x - Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer
Slide 14: Hedging Contracts (Quarterly Summary)
Hedging Contracts (Quarterly Summary)1 WTI Swaps2 Crude Edmonton Light Diff. AECO Swaps3 Propane Swaps Quarter bbl/d US$/bbl bbl/d US$/bbl mmbtu/d US$/mmbtu Gal/d US$/gal Q1-23 1,488 $89.40 1,102 ($4.31) 4,178 $3.25 4,038 $1.25 Q2-23 1,825 $84.46 1,057 ($4.09) 5,507 $2.17 3,924 $1.05 Q3-23 1,762 $82
Slide 15: Lithium Exploration | Overview
Lithium Exploration | Overview ROK’s lithium diversification is a highly opportunistic strategy, with access Lithium Land Positions to untapped lithium properties in Saskatchewan • ROK owns 25% of private corporation Hub City Lithium Corp. Land Positions • Hub City Lithium Corp. has >192k acres of l
Slide 16: Lithium Exploration | Viewfield Project
Lithium Exploration | Viewfield Project Viewfield 2-22-7-9W2 • Drilled and flow tested November/December in 2022 • Tested multiple zone intervals & flow tested >550m3/day with high volume ESP pump • Obtained Li concentrations as high as 259 mg/l • Wymark E/D: 220 – 259 mg/l • Wymark A/B/C: 94 – 167
Slide 17: Lithium Exploration | Mansur Project
Lithium Exploration | Mansur Project Mansur 11-2-9-13W2 Mansur #1 (11-2) • Recompleted and flow tested in 2021 • Tested multiple zone intervals & flow tested >525 m3/day with Mansur #2 (14-36) high volume ESP pump • Obtained Li concentrations as high as 96 mg/l • Wymark A/B: 79-86 mg/l • Wymark E/F:
Slide 18: Catalysts For Growth | Why Invest in ROK Resources
Catalysts For Growth | Why Invest in ROK Resources We have consistently hit our targets and delivered results in line with our long-term strategy. We will continue to work hard to deliver material value to shareholders in 2023 and beyond. Strong Free Proven Substantial Conservative High Quality Long
Slide 19: Analyst Coverage | Independent Research
Analyst Coverage | Independent Research Kirk Wilson, CFA Christopher True Managing Director, Research (Energy) Equity Research Analyst kwilson@beaconsecurities.ca ctrue@viiicapital.com Amr Ezzat Bill Newman, CFA Managing Director & Head of Research Vice President & Senior Analyst aezzat@echelonpartn
Slide 20: Appendix
APPENDIX C2 20 | TSX.V: ROK
Slide 21: Appendix I | Board of Directors
Appendix I | Board of Directors Cam Taylor Chairman & Chief Executive Officer Geoscientist with over 30 years of international O&G experience with Pan Orient Energy, Orion Securities, Jeffrey Chisholm Bow Valley Energy, Canadian Occidental Petroleum (Nexen), PanCanadian Petroleum (Encana) and Niko I
Slide 22: Appendix II | Strategic SE Saskatchewan Acquisition
Appendix II | Strategic SE Saskatchewan Acquisition Highly Significant ✓ All‐cash transaction provides per share accretion: ✓ Stable base production of ~1,025 boe/d (net) with Accretive FCF >75% accretive to TPP reserves per share attractive netbacks and capital efficiencies Metrics Potential Substa
Slide 23: Appendix II | Strategic SE Saskatchewan Acquisition (Cont'd)
Appendix II | Strategic SE Saskatchewan Acquisition (Cont’d) Pro Forma Corporate Comparison Acquisition Highlights Production at Closing (boe/d)1 2P Reserves Life Index (years)2 Purchase price ($mm) $26.5mm in cash / 475 boe/d asset swap 4,400 14.6 Daily production (October) ~1,500 boe/d (69% liquid
Slide 24: Appendix III | Kaybob Assets
Appendix III | Kaybob Assets Kaybob assets offer significant upside potential with rising commodity prices 24 TSX.V: ROK
Slide 25: Appendix III | Kaybob Cardium
Appendix III | Kaybob Cardium Analogous Cardium Production vs Reserve & Forecast Curves US$80 WTI / US$90 WTI / US$100 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $3.2mm $3.2mm $3.2mm 400 EUR 125 mbbl 125 mbbl 125 mbbl 350 NPV10% $2.3mm $3.3mm $4.3mm Reserves Type Curve IRR (B
Slide 26: Appendix III | Kaybob Montney
Appendix III | Kaybob Montney Analogous Montney Production vs Reserve & Forecast Curves $4/MCF AECO $5/MCF AECO $6/MCF AECO Daily Gas Production (mmcf/d) DCE cost $5.3mm $5.3mm $5.3mm 10,000 EUR 3,500 mmcf 3,500 mmcf 3,500 mmcf 9,000 NPV10% $1.2mm $3.0mm $5.5mm 8,000 Reserves Type Curve IRR (B-tax)
Slide 27: Appendix IV | Reserves
Appendix IV | Reserves Stand-Alone Reserves Summary1 (December 31, 2022) Oil Vol. Gas Vol. NGL Vol. Total Vol. Liquids NPV-10% mbbl Mmcf mbbl mboe % $mm PDP 4,456 11,977 389 6,841 71% $97 1P 6,480 16,157 554 9,727 72% $136 2P 9,940 30,284 1,056 16,044 69% $219 RESERVES UPDATE COMING Stand-Alone Rese
Slide 28: Appendix V | Strategy & Focus
Appendix V | Strategy & Focus Operational Excellence Superior Risk-Adjusted Optimization of base Returns production through enhanced Multi-year, low-risk development production techniques and drilling inventory underpinned by cost controls strong base production Capital Discipline Accretive Opportun
Slide 29: Disclaimer | General Advisory
Disclaimer | General Advisory This presentation includes information that constitutes “forward-looking information” or “forward-looking statements”. More particularly, this presentation contains statements concerning expectations regarding the successful implementation of drilling activities on asse
Slide 30: ROK Resources Inc. contact details
ROK Resources Inc. 1911 Broad Street Regina, SK S4P 1Y1 Phone: (306) 522-0011 Email: investor@rokresources.ca Website: www.rokresources.ca