Rok Resources, Inc. Class B · TSXV:ROK
Rok Resources, Inc. Class B — Investor Presentation (February 2023)
23 slides from Rok Resources, Inc. Class B's investor presentation, Feb 9, 2023
Slide 1: Investor Presentation Winter 2023
INVESTOR PRESENTATION Winter 2023 A growth-oriented oil & gas company well-positioned to capitalize on the current commodity cycle
Slide 2: Company Profile | Snapshot
Company Profile | Snapshot ~3,5601 >20x ~$531 ~$52/boe1 Q4/22E Production Production Growth 2022E Net Op. Income 2022E Netback (boe/d) (Q4/21-Q4/22) ($ million) ($/boe) Recent Announcements Production Profile (Q4 2022)2 Kaybob ~3,560 ~1,200 boe/d boe/d Strategic Asset $75 Million Credit 34% liq. Acq
Slide 3: Experienced Leadership Team
Experienced Leadership Team Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil Corp., Villanova Cam Taylor Oil Corp. & Villanova Resources Inc. Mr. Taylor is a geoscientist with over 30 years of experience in Chairman & oil & gas exploration and development. Since graduati
Slide 4: Solid Track Record of Execution and Value Creation
Solid Track Record of Execution and Value Creation Management brings a solid track record of execution and value creation through the development, from infancy to the successful divestitures, of four successive companies generating shareholder returns of 3x Previous Experience 4 Successive Company E
Slide 5: Strategic SE Saskatchewan Acquisition
Strategic SE Saskatchewan Acquisition Highly Significant ✓ All‐cash transaction provides per share accretion: ✓ Stable base production of ~1,500 boe/d with Accretive FCF >75% accretive to TPP reserves per share attractive netbacks and capital efficiencies Metrics Potential Substantial Desirable ✓ Si
Slide 6: Locations | High Quality Drilling Inventory
Locations| High Quality Drilling Inventory Target Gross # Booked Core Area1 Formations Sections Avg WI% Drilling Locations1,2 Pinto/Alameda Frobisher & Midale 45 85% 55 Glen Ewen/Florence Frobisher & Midale 26 85% 30 Benson/Steelman Frobisher & Midale 16 90% 4 Workman/Gainsborough Frobisher & Midale
Slide 7: Strategic SE Saskatchewan Acquisition | Cont’d
Strategic SE Saskatchewan Acquisition | Cont’d Pro Forma Corporate Comparison Acquisition Highlights Q4 2022 Production (boe/d)1 2P Reserves Life Index (years)2 Purchase price ($mm) $26.5 mm in cash / 475 boe/d asset swap 4,585 14.7 Daily production (October) ~1,500 boe/d (69% liquids) 11.9 3,560 An
Slide 8: Corporate Milestones
Corporate Milestones 194 3,054 ~3,560 ~4,200 boe/d boe/d boe/d boe/d Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 H1 2023 Entered into an Closed Results beat Drilled the best well All-cash SE Sask. Pay down debt and agreement to transformational estimates, with new in Saskatchewan at acquisition integrat
Slide 9: Company Profile | Capitalization
Company Profile | Capitalization TSXV: ROK Capitalization (as of February 1, 2023) 50-day Moving Average $0.45 Basic Shares 211.7 mm Management & Public Warrants1 (ROK.WT) (Strike Price $0.25) 113.1 mm Board ~17.1% Non-Public Warrants (Average Strike Price $0.32) 9.3 mm Options (Average Strike Price
Slide 10: Company Profile | Forecast Estimates
Company Profile | Forecast Estimates ~US$95/B WTI US$80/B WTI 2022E Estimate1 H1 2023E Forecast2 Production ~2,780 boe/d (73% liquids) ~4,200 boe/d (69% liquids) Exit Net Debt $35 mm $53 mm Capital Expenditures (Excl. Acquisitions, Inventory & Lithium Project Expenditures) $27 mm $10 mm Net Operatin
Slide 11: New Senior Secured Debt Facility
New Senior Secured Debt Facility New senior credit facility provides ample liquidity for growth: Debt Facility Comparison ($mm) Facility Amounts ($mm) Cost of Debt • New senior loan facility secured for an aggregate principal amount of $75 million, including: Credit facility available 16% $67.5 • A
Slide 12: Value Proposition | Peer Comparison
Value Proposition | Peer Comparison1,2 Select Domestic Oil Weighted Producers 2022E EV/EBITDA (x) 2022E EV/MBOE/d ($/mboe/d) 6.0x $120.0 5.0x $100.0 4.0x $80.0 2.7x 3.0x $60.0 $47.0 2.0x $40.0 1.0x $20.0 0.0x - BTE CJ MEG HWX OBE VET GXE SU ERF SOIL CPG WCP ATH CVE SGY TVE RBY BNE CNQ GXE ERF MEG SU
Slide 13: 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 Land Positions • ROK owns 25% of private corporation Hub City Lithium Corp. • Hub City Lithium Corp. owns ~212.6k gross a
Slide 14: 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 submersible pump • Obtained Li concentrations as high as 96 mg/l • Wymark A/B: 79-86 mg/l • Wym
Slide 15: 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 and will continue to deliver material value to shareholders in 2023 and beyond Substantial Strong Free Proven High Quality Cash Flow Long-Term Strong ESG
Slide 16: 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 Tom Hems, CFA Bill Newman, CFA Equity Research Analyst, Director (Energy) Vice President & Senior Analyst thems@ech
Slide 17: Appendix
APPENDIX C2 17 | TSX.V: ROK
Slide 18: 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 19: Appendix II | Hedging Contracts (Quarterly Summary)
Appendix II | Hedging Contracts (Quarterly Summary)1 WTI Swaps2 Crude Edmonton Light Diff. AECO Swaps3 AECO Diff. Propane Swaps Quarter bbl/d US$/bbl bbl/d US$/bbl mmbtu/d US$/mmbtu mmbtu/d US$/mmbtu Gal/d US$/gal Q1-23 1,488 $89.70 1,102 ($4.31) 4,178 $3.26 - - 4,038 $1.25 Q2-23 1,755 $85.49 1,057
Slide 20: Appendix III | Strategy & Focus
Appendix III | 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 Opport
Slide 21: Appendix IV | CO2 Sequestration Process
Appendix IV | CO2 Sequestration Process This is a major step in ROK’s vision to be a sustainable and environmentally responsible operator by offsetting ~86% of its current CO2 emissions and by supporting its goal to become a net-negative CO2 emitter. CO2 Sequestration Process1 Enhance and support Pr
Slide 22: 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 23: 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
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