Tuesday, 26 October 2021 05:52 GMT

ROK Resources Releases Florence Property Reserves Update


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REGINA, SK / ACCESSWIRE / October 14, 2021 / ROK Resources Inc. (" ROK " or the " Company ") ( TSXV:ROK ) is pleased to announce the completion of an independent reserves evaluation of its recently acquired Florence Asset, effective August 31st, 2021, in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and in accordance with the Canadian Oil and Gas Evaluation Handbook (the "Florence Property Report").

The Florence Property Report does not include the Company's existing corporate reserve base at Glen Ewen, which was evaluated at December 31st, 2020 by GLJ and press released on February 24th, 2021.

Florence Property Report

The Florence Property Report, prepared by Sproule Associates Limited ("Sproule"), evaluated assets in Southeast Saskatchewan (the "Florence Asset") that ROK acquired effective April 1st, 2021 for cash consideration of $4.0 million plus 4,250,000 ROK Class B Common Shares. The net present value of net future revenues, (net of royalties, operating costs, and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% ("NPV 10%") of the total proved plus probable reserves is estimated at $16.2 million, or $0.22 per outstanding basic share.

Summary of Gross Oil and Gas Reserves and Net Present Value of Revenue:

Before Income Taxes as of August 31, 2021 - Forecast Prices and Costs

NPV 10%
($ million)

NPV per Boe1
$ / boe

Proved Developed Producing

$1.94

$22.83

Total Proved

$7.22

$20.46

Proved Plus Probable

$16.18

$22.88

  • Florence Property Report used Sproule price forecast effective August 31, 2021
  • Summary of Florence Property Report Gross Oil and Gas Reserves:

    Light & Medium Oil

    Natural
    Gas

    Natural Gas Liquids

    Total Boe

    RESERVES CATEGORY

    Mbbl

    MMcf

    Mbbl

    Mboe

    Proved Developed Producing

    71.6

    41

    6.5

    84.9

    Proved Non- Producing

    0

    0

    0

    0

    Proved Undeveloped

    227.3

    124

    19.9

    267.8

    Total Proved

    298.9

    164

    26.5

    352.8

    Probable

    300.5

    165

    26.5

    354.6

    Proved Plus Probable

    599.5

    329

    53

    707.3

    Natural Gas: 6.0 Mcf/boe

    Qualified Person

    The technical content of this news release has been reviewed and approved by Bryden Wright, P. Eng., a qualified person for the purpose of National Instrument 41-101.

    About ROK

    ROK is primarily engaged in exploring for petroleum and natural gas development activities in Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and 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 CEO
    Lynn Chapman, CFO
    Phone: (306) 522-0011
    Email:

    Oil and Gas Disclosures

    Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.

    The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf:1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.

    Cautionary Statement Regarding Forward-Looking Information

    This news release includes certain "forward-looking statements" under applicable Canadian securities legislation 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 news release include, but are not limited to, statements with respect to the Company's objectives, goals or future plans with respect to pursuing the objectives and the expectations regarding the expected results thereof. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where 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 Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.

    SOURCE: ROK Resources Inc.

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