ROK Resources Announces Revised First-Half 2024 Guidance & Files 2023 Financial Results & Management Discussion & Analysis

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REGINA, SK / ACCESSWIRE / April 18, 2024 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) announces revised first-half 2024 guidance, and has filed its Annual Financial Results and Management Discussion & Analysis for the year ended December 31, 2023.

First-Half 2024 Revised Guidance

With the recent stability of WTI pricing, the Company anticipates commencing its drilling program after spring break-up in late Q2 2024. Key initiatives for 2024 include reducing corporate finding and development costs and expanding core operating areas in Southeast Saskatchewan. The six well program, which will target Frobisher light oil prospects, will begin with prospects offsetting the best oil well³ in Saskatchewan in December 2023. To support these endeavors, the first-half 2024 capital budget has been revised from $4.0 - $4.5 million to $10.0 - 10.5 million. This acceleration of development is contingent on various factors, including favorable weather and road conditions following spring break-up.

The Company intends to provide second-half 2024 guidance in late Q2 2024.

Highlights of Revised First-Half 2024 Guidance

• Stability in WTI: Company will increase its capital budget in first-half 2024 to $10.0 - $10.5 million, with an expected benefit to Net Operating income through second-half 2024 as new unhedged production comes on-stream. The Company expects to average ~4,000 boepd in first-half 2024 (61% liquids);
• Net Debt: Estimated $16.0 - $16.5 million in Adjusted Net Debt at the end of first-half 2024;
• Expedited Drill Program: Addition of 6 gross (5.4 net) Frobisher wells in late Q2, weather permitting; and
• Efficient Use of Capital: $1.0 million allocated to reactivations and recompletions, expected to yield average capital efficiencies of $5,000 to $10,000 per boepd.

2023 Financial and Operating Highlights

• Record Average Production: Daily average production in 2023 of 3,876 boepd (62% liquids), a 40% increase compared to prior year;
• Organically Increased Production by 55%: In second-half 2023 the Company drilled 13 gross (11.6 net) wells, adding 1,650 boepd, which represents a 55% increase in production over the period;
• Exceeded 2023 Funds from Operations Forecast: Funds from Operations of $37.2 million in 2023, exceeding the Company's forecast by 3.5% despite weaker commodity pricing;
• Net Debt: The Company exited 2023 with Net Debt of $14.7 million (or Adjusted Net Debt of $18.7 million). This represents a 58%, or $20.6 million, reduction in Net Debt year over year; and
• Hedge Gain: realized an annual hedge gain on commodity contracts of $6.7 million.

Net Debt

The continued reduction of Net Debt quarter over quarter is a result of organically generated funds flows utilized to reduce Company indebtedness. ROK uses "Net Debt" as a measure of the Company's financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS.

1. Represents undiscounted face value of debt balances and lease obligations outstanding as of each respective date presented.
2. 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.
3. Published by ATB Capital Markets Institutional Research: Energy Producers on January 28, 2024.

Complete reports and statements are available on SEDAR at www.sedar.com

About ROK

ROK is primarily engaged in exploring for petroleum and natural gas 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:

Cameron Taylor, Chairman and Chief Executive Officer
Bryden Wright, President and Chief Operating Officer
Jared Lukomski, Senior Vice President, Land & Business Development
Lynn Chapman, Chief Financial 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.

The following table reconciles the aforementioned non-IFRS measures: