ROK Resources: First Quarter 2022 Financial Results and Management Discussion and Analysis Files







REGINA, SK /ACCESSWIRE/May 31, 2022/ ROK Resources Inc. (“ROK“or the”Company“) (TSXV: ROK) filed its interim financial results and MD&A for the quarter ended March 31, 2022.

financial state

Highlights include:

  • In the first quarter of 2022, the Company achieved a production volume of 84,647 boe, resulting in crude oil and natural gas sales of $8,121,878 and operating profit of $4,988,689 after royalties and Operating Expenses. This equates to a net operating income per boe of $58.93 and an operating profit margin of 61.4%.

  • In March 2022, the Company successfully completed the acquisition (the “FCL Acquisition”) of certain oil and gas assets in Saskatchewan and Alberta from Federated Co-operatives Limited and its wholly owned subsidiary, 2214896 Alberta Ltd. . (“FCL”). The total consideration paid for the acquisition of FCL was approximately $71.7 million, before a preliminary purchase price adjustment of $9.6 million in favor of the Company. The acquisition of FCL was financed by a combination of proceeds from the prospectus offering and the senior loan facility (see below).

  • In March 2022, the Company completed a public offering (the “Prospectus Offering”) for aggregate gross proceeds of $17.3 million, whereby 95,834,100 Company Units were issued to price of $0.18 per unit. Each unit consisted of one Class B Share in the capital of the Company and one warrant Each warrant is exercisable for one Class B share at an exercise price of $0.25 per warrant for a period of three year.

  • In March 2022, the Company entered into a senior secured loan facility with Anvil Channel Energy Solutions (“ACES”) for an aggregate principal amount of $65 million (the “Senior Loan Facility”), denominated in US dollars of 51.35 million dollars. The senior loan facility bears interest at the US prime rate + 8.00% and will be amortized over a four-year period, with combined monthly repayments of principal and interest. Under the Senior Loan Facility, the Company has also granted an overriding royalty to ACES on future oil and natural gas production from the Company’s existing oil and gas assets. The overriding royalty will be 2.5% of oil and natural gas production until the maturity date of the loan facility, and 1.5% thereafter.

$ (Canadian dollars)

March 31, 2022 March 31, 2021

Cash and cash equivalents

8,625,754

1,289,367

Fixed assets

152 859 322

1,399,253

Exploration and evaluation assets

1,324,193

1,225,927

Total assets

177 308 775

4,435,218

Cash flow used in operations (three months)

2,305,838

143 217

Operating result (three months)

4,988,689

140 270

Gain on acquisition (three months)

57,913,364

Net profit (loss) (three months)

67,300,594

(371,687

)

Net earnings (loss) per share (three months)

Basic

Diluted

0.65
0.61

(0.01
(0.01


)
)

Complete reports and statements are available on SEDAR at www.sedar.com and on the Company’s website www.rokresources.ca.

About ROK

ROK is primarily engaged in the exploration of oil and natural gas development activities in Alberta and Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and the common shares of ROK trade on the Exchange under the symbol “ROK”.

For more information, please contact:

Cameron Taylor, President and CEO
Jared Lukomski, Senior Vice President, Lands and Business Development
Phone: (306) 522-0011
Email: [email protected]

Non-IFRS Measures

The non-IFRS measures referenced above do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, may not be comparable to similar measures used by other companies. Management uses this non-IFRS measure to provide its shareholders and investors with a measure of the Company’s financial performance and is not intended to represent operating profit or consider it as an alternative to cash flow generated by operating activities, net profit 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 of other companies where similar terminology is used. “Operating profit” is calculated by deducting operating expenses from total revenue. Total revenue includes oil and gas sales, net of royalties. The Company refers to operating profit expressed per unit of production as “net operating income”. “Operating profit margin” is calculated by the Company as operating profit as a percentage of oil and natural gas sales.

Conversion Metrics

Production volumes and reserves are generally expressed on a barrel of oil equivalent (“boe”) basis, with natural gas volumes converted at a ratio of 6,000 cubic feet (“Mcf”) to 1 barrel oil (“bbl”). Although the intention is to consolidate petroleum and natural gas measurement units into a single basis for better analysis of results and comparisons with other industry players, boe can be misleading, especially s they are used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. In recent years, the value ratio based on the price of crude oil to natural gas has been significantly higher than the energy equivalence of 6:1 and the use of a conversion of natural gas volumes on a basis of 6:1 can be misleading as an indication of value.

Caution Regarding Forward-Looking Information

This press release contains certain “forward-looking statements” under applicable Canadian securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s objectives, goals or future plans with respect to the pursuit of objectives and expectations regarding the expected results of those -this. Forward-looking statements are necessarily based on various estimates and assumptions which, although believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially. of those expressed or implied by such forward-looking statements. research statements. These factors include, but are not limited to, general business, economic and social uncertainties; litigation, legislative, environmental and other legal, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; such additional risks set forth in ROK’s public filings on SEDAR at www.sedar.com; and other matters discussed in this press release. Although the Company believes that the assumptions and factors used in the preparation of forward-looking statements are reasonable, undue reliance should not be placed on such statements, which speak only as of the date of this press release, and no no assurance can be given that such events will occur within the time frames disclosed or at all. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the Bourse nor its Regulation Services Provider (as that term is defined in the policies of the Bourse) accepts responsibility for the adequacy or accuracy of this release.

THE SOURCE: ROK Resources Inc.

See the source version on accesswire.com:
https://www.accesswire.com/703389/ROK-Resources-Files-Financial-Results-and-Management-Discussion-Analysis-for-the-First-Quarter-of-2022

Disclaimer

ROK Resources Inc. published this content on May 31, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on May 31, 2022 4:50:09 PM UTC.

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Sales

Net revenue

Net debt

P/E ratio
Yield
Capitalization 48.3M
38.2 million
38.2 million
EV / Sales -1
EV / Sales 0
# of employees 5
Floating 69.0%

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