from ROK Resources, Inc. (isin : CA77544C1041)
ROK Resources Appoints New CEO & Board Member, & Files 2024 Financial Results & Management Discussion & Analysis
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESS Newswire / April 10, 2025 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) is pleased to announce the promotion of Mr. Bryden Wright to President and CEO of the Company, with Mr. Cameron Taylor continuing to serve the Company as Executive Chairman of the Board.
"The natural leadership evolution underscores the Company's confidence in Mr. Wright's capabilities. With over 17 years of industry experience, ROK will continue to rely upon Mr. Wright and his team to guide responsible economic growth and deliver on ROK's long-term strategy to unlock shareholder value," commented Mr. Taylor.
Further, effectively immediately, Mr. David French has joined the Board of Directors of the Company replacing Mr. David Hergenhein. The Company thanks Mr. Hergenhein for his efforts and service on behalf of ROK shareholders.
Mr. French is a seasoned financial executive with over 30 years of experience, including more than 20 years in the Canadian oil and gas industry. Mr. French is currently the Chief Financial Officer and Senior Vice President of Finance at Burgess Creek Exploration Inc., a Calgary-based private oil and gas exploration company. Prior to joining Burgess Creek, Mr. French served as Chief Financial Officer and Vice President of Finance at Elkhorn Resources Inc. and Medora Resources Inc., both Calgary-based private oil and gas exploration companies. Earlier in his career, Mr. French spent a decade working internationally in a variety of finance roles, gaining broad exposure to global energy markets and operational finance. A Chartered Professional Accountant (CPA, Alberta) and a Fellow of the Institute of Chartered Accountants in England and Wales (FCA), Mr. French brings deep expertise in financial management and strategic planning. His diverse experience and long-standing contributions have established him as a respected and trusted leader within the Canadian energy sector.
2024 Financial and Operating Highlights
The Company has filed its Annual Financial Results and Management Discussion & Analysis for the year ended December 31, 2024.
43% Reduction in Adjusted Net Debt: The Company exited 2024 with Adjusted Net Debt of $10.6 million, representing a 43%, or $8.1 million, reduction year over year;
Funds from Operations Outperforms Forecast: Funds from Operations of $31.4 million in 2024, a 5% increase compared to internal forecast of $29.8 million;
Production In-Line with Forecast: Daily average production in 2024 of 3,992 boepd (66% liquids), which represents production growth of 3%, despite a 37% reduction in CAPEX, year over year;
Reserves Growth: As a result of our successful light oil drilling program in 2024, the Company had a 4% increase on total proved and medium oil reserves and 5% increase on total proved plus probable light and medium oil reserves.
Financial | Q4 2024 | Q4 2023 | Year 2024 | Year 2023 | ||||||||||||
Net income (loss) | (5,145,508 | ) | (3,713,389 | ) | (636,413 | ) | (10,986,934 | ) | ||||||||
Basic ($/share) | (0.02 | ) | (0.02 | ) | (0.00 | ) | (0.05 | ) | ||||||||
Diluted ($/share) | (0.02 | ) | (0.02 | ) | (0.00 | ) | (0.05 | ) | ||||||||
Funds flow | 5,600,032 | 6,163,667 | 22,393,873 | 25,790,378 | ||||||||||||
Basic ($/share) | 0.03 | 0.03 | 0.10 | 0.12 | ||||||||||||
Diluted ($/share) | 0.03 | 0.03 | 0.10 | 0.12 | ||||||||||||
Expenditures on property, plant and equipment | 7,333,846 | 12,348,404 | 17,386,533 | 28,933,947 | ||||||||||||
Operating | ||||||||||||||||
Oil and Natural Gas Sales | 21,167,535 | 23,207,066 | 85,190,055 | 87,226,620 | ||||||||||||
Royalties | (3,570,036 | ) | (3,902,500 | ) | (14,971,581 | ) | (15,392,995 | ) | ||||||||
Operating Expenses | (10,326,040 | ) | (11,501,149 | ) | (44,306,042 | ) | (44,095,957 | ) | ||||||||
Operating Income | 7,271,459 | 7,803,417 | 25,912,432 | 27,737,668 | ||||||||||||
Processing and other income (1) | 768,101 | 1,074,743 | 2,855,568 | 2,778,326 | ||||||||||||
Realized gain on commodity contracts | 861,736 | 1,021,804 | 2,675,613 | 6,710,873 | ||||||||||||
Funds from Operations | 8,901,296 | 9,899,964 | 31,443,613 | 37,226,867 | ||||||||||||
Average daily production | ||||||||||||||||
Crude oil (bbl/d) | 2,215 | 2,116 | 2,211 | 2,064 | ||||||||||||
NGLs (boe/d) | 430 | 495 | 411 | 417 | ||||||||||||
Natural gas (mcf/d) | 8,038 | 9,591 | 8,220 | 8,372 | ||||||||||||
Total (boe/d) | 3,985 | 4,210 | 3,992 | 3,876 | ||||||||||||
Operating Netback per boe | ||||||||||||||||
Oil and Natural Gas Sales | 57.74 | 59.91 | 58.30 | 61.65 | ||||||||||||
Royalties | (9.74 | ) | (10.08 | ) | (10.25 | ) | (10.88 | ) | ||||||||
Operating Expenses | (28.17 | ) | (29.69 | ) | (30.32 | ) | (31.17 | ) | ||||||||
Operating Netbacks ($/boe) | 19.83 | 20.14 | 17.73 | 19.60 | ||||||||||||
Funds from Operations ($/boe) | 24.28 | 25.56 | 21.52 | 26.31 | ||||||||||||
Operating Income Profit Margin | 34.4 | % | 33.6 | % | 30.4 | % | 31.8 | % | ||||||||
Funds from Operations Profit Margin | 42.1 | % | 42.7 | % | 36.9 | % | 42.7 | % | ||||||||
Share information | ||||||||||||||||
Common shares outstanding, end of period | 219,769,315 | 218,418,315 | 219,769,315 | 218,418,315 | ||||||||||||
Weighted average basic shares outstanding | 218,928,011 | 217,267,463 | 218,546,943 | 214,720,034 | ||||||||||||
Weighted average diluted shares outstanding | 218,928,011 | 217,267,463 | 218,726,318 | 214,720,034 | ||||||||||||
Non-cash revenue derived from management fees that are recognized over time from deferred revenue is excluded from processing and other income for the calculation of Funds from Operations.
December 31, 2024 | December 31, 2023 | |||||||
Accounts receivable | 11,527,814 | 13,021,111 | ||||||
Prepaids and deposits | 283,928 | 364,090 | ||||||
Risk management contracts | (771,046 | ) | 4,521,075 | |||||
Accounts payable | (15,346,332 | ) | (17,560,130 | ) | ||||
Adjusted working capital (2) | (4,305,636 | ) | 346,146 | |||||
Credit Facility (8.4%) (1) | 7,348,964 | 14,501,748 | ||||||
Lease obligations (1) | 475,178 | 545,851 | ||||||
Less: adjusted working capital (2) | 4,305,636 | (346,146 | ) | |||||
Net debt | 12,129,778 | 14,701,453 | ||||||
Represents undiscounted face value of debt balances and lease obligations outstanding as of each respective date presented.
Calculation of adjusted working capital excludes current portion of debt as presented on the statement of financial position. The mark-to-market fair value of the current portion of risk management contracts is included within adjusted working capital.
Complete reports and statements will be made available on SEDAR+ at www.sedarplus.ca and on the Company website www.rokresources.ca.
About ROK
ROK is primarily engaged in petroleum and natural gas exploration and development activities in Alberta and Saskatchewan. It has offices located in both Regina, Saskatchewan, Canada and Calgary, Alberta, Canada. ROK's common shares are traded on the TSX Venture Exchange under the trading symbol "ROK".
For further information, please contact:
Bryden Wright, President and Chief Executive Officer
Phone: (306) 522-0011
Email: investor@rokresources.ca
Website: www.rokresources.ca
Non-IFRS Measures
The non-IFRS measures referred to above do not have any standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and, therefore, may not be comparable to similar measures used by other companies. Management uses this non-IFRS measurement to provide its shareholders and investors with a measurement of the Company's financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.
"Operating Income" is calculated by deducting royalties and operating expense from total sales revenue. Total sales revenue is comprised of oil and gas sales. The Company refers to Operating Income expressed per unit of production as an "Operating Netback". "Operating Income Profit Margin" is calculated by the Company as Operating Income as a percentage of oil and natural gas sales. "Funds from Operations" is calculated by adding other income and realized gains/losses on commodity contracts ("hedging") to Operating Income. "Funds from Operations Profit Margin" is calculated by the Company as Funds from Operations as a percentage of oil and natural gas sales.
The following table reconciles the aforementioned non-IFRS measures:
Q4 2024 | Q4 2023 | Year 2024 | Year 2023 | |||||||||||||
Oil and natural gas sales | 21,167,535 | 23,207,066 | 85,190,055 | 87,226,620 | ||||||||||||
Royalties | (3,570,036 | ) | (3,902,500 | ) | (14,971,581 | ) | (15,392,995 | ) | ||||||||
Operating expenses | (10,326,040 | ) | (11,501,149 | ) | (44,306,042 | ) | (44,095,957 | ) | ||||||||
Operating Income | 7,271,459 | 7,803,417 | 25,912,432 | 27,737,668 | ||||||||||||
Processing and other income (1) | 768,101 | 1,074,743 | 2,855,568 | 2,778,326 | ||||||||||||
Realized gain on commodity contracts | 861,736 | 1,021,804 | 2,675,613 | 6,710,873 | ||||||||||||
Funds from Operations | 8,901,296 | 9,899,964 | 31,443,613 | |||||||||||||