NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESS Newswire / May 28, 2026 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) announces the Company has filed the Financial Results and Management Discussion & Analysis for the three months ended March 31st, 2026.
Q1 2026 Financial and Operating Highlights
The Company remained on strategy for Q1 2026, with Funds Flow of $3.8 million increasing the Companies adjusted net surplus to $7.8 million. The previously announced $20.4 million 2026 capital program is expected to be funded entirely out of working capital. At the time of writing, the Company is currently drilling its second well of its 2026 capital program of 8 to 10 gross wells, all targeting light oil prospects in Southeast Saskatchewan.
Working Capital Surplus: Adjusted Net Surplus of $7.8 million, as compared to $4.5 million at December 31, 2025;
Production in line with forecast: quarterly production averaged 3,027 boepd (69% liquids) with 280 boepd (15% liquids) shut-in and expected to be brough back online through Q2 2026; and
Funds from Operations: Funds from Operations of $5.3 million.
Operating (expressed in $000s except where stated) |
| Q1 2026 |
|
| Q1 2025 |
| ||
Oil and Natural Gas Sales |
|
| 15,874 |
|
|
| 20,980 |
|
Royalties |
|
| (2,597 | ) |
|
| (3,478 | ) |
Operating Expenses |
|
| (8,667 | ) |
|
| (9,031 | ) |
Operating Income |
|
| 4,610 |
|
|
| 8,471 |
|
Processing and other income (1) |
|
| 378 |
|
|
| 499 |
|
Realized gain on commodity contracts |
|
| 277 |
|
|
| (334 | ) |
Funds from Operations |
|
| 5,265 |
|
|
| 8,636 |
|
Average daily production |
|
|
|
|
|
|
|
|
Crude oil (bbl/d) |
|
| 1,744 |
|
|
| 2,166 |
|
NGLs (boe/d) |
|
| 337 |
|
|
| 417 |
|
Natural gas (mcf/d) |
|
| 5,672 |
|
|
| 8,144 |
|
Total (boe/d) |
|
| 3,027 |
|
|
| 3,941 |
|
Operating Netback per boe |
|
|
|
|
|
|
|
|
Oil and Natural Gas Sales |
|
| 58.27 |
|
|
| 59.16 |
|
Royalties |
|
| (9.53 | ) |
|
| (9.81 | ) |
Operating Expenses |
|
| (31.81 | ) |
|
| (25.46 | ) |
Operating Netbacks ($/boe) |
|
| 16.93 |
|
|
| 23.89 |
|
Funds from Operations ($/boe) |
|
| 19.33 |
|
|
| 24.35 |
|
Operating Income Profit Margin |
|
| 29.1 | % |
|
| 40.4 | % |
Funds from Operations Profit Margin |
|
| 33.2 | % |
|
| 41.2 | % |
Financial (expressed in $000s except where stated) |
| Q1 2026 |
|
| Q1 2025 |
| ||
Net income (loss) |
|
| 2,381 |
|
|
| (1,545 | ) |
Basic ($/share) |
|
| 0.01 |
|
|
| (0.01 | ) |
Diluted ($/share) |
|
| 0.01 |
|
|
| (0.01 | ) |
Funds flow |
|
| 3,824 |
|
|
| 7,149 |
|
Basic ($/share) |
|
| 0.02 |
|
|
| 0.03 |
|
Diluted ($/share) |
|
| 0.02 |
|
|
| 0.03 |
|
Expenditures on property, plant and equipment |
|
| 505 |
|
|
| 669 |
|
(1) Refer to "Non-IFRS Measures" section below for details regarding adjustments to processing and other income for purposes of calculating "Funds from Operations".
Complete reports and statements are 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
Jared Lukomski, Senior Vice President, Land & Business Development
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:
($000s) |
| Q1 2026 |
|
| Q1 2025 |
| ||
Oil and natural gas sales |
|
| 15,874 |
|
|
| 20,980 |
|
Royalties |
|
| (2,597 | ) |
|
| (3,478 | ) |
Operating expenses |
|
| (8,667 | ) |
|
| (9,031 | ) |
Operating income |
|
| 4,610 |
|
|
| 8,471 |
|
Processing and other income (1) |
|
| 378 |
|
|
| 499 |
|
Realized gain (loss) on commodity contracts |
|
| 277 |
|
|
| (334 | ) |
Funds from Operations |
|
| 5,265 |
|
|
| 8,636 |
|
|
|
|
|
|
|
|
|
|
Sales volume (boe) |
|
| 272,447 |
|
|
| 354,657 |
|
|
|
|
|
|
|
|
|
|
($ per boe) |
|
|
|
|
|
|
|
|
Oil and natural gas sales |
|
| 58.27 |
|
|
| 59.16 |
|
Royalties |
|
| (9.53 | ) |
|
| (9.81 | ) |
Operating expenses |
|
| (31.81 | ) |
|
| (25.46 | ) |
Operating Netback |
|
| 16.93 |
|
|
| 23.89 |
|
Funds from Operations |
|
| 19.33 |
|
|
| 24.35 |
|
Operating Income Profit Margin |
|
| 29.1 | % |
|
| 40.4 | % |
Funds from Operations Profit Margin |
|
| 33.2 | % |
|
| 41.2 | % |
(1) Non-cash revenue derived from management fee that is recognized over time from deferred revenue is excluded from processing and other income for the calculation of Funds from Operations.
"Net Surplus (Debt)" includes the undiscounted face value of all indebtedness of the Company, such as the credit facility and lease obligations (each as defined within the Company's interim condensed consolidated financial statements for the three months ended March 31, 2026), net of Adjusted Working Capital. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding?current?portion?of debt,?lease liabilities, decommissioning obligations, and RSU liabilities as defined on the Company's statement of financial position within the Company's interim condensed consolidated financial statements for the three months ended March 31, 2026. "Adjusted Net Surplus (Debt)" is calculated by removing the mark-to-market fair value of the current portion of risk management contracts and lease obligations (each as defined within the interim condensed consolidated financial statements for the three months ended March 31, 2026) from Net Surplus (Debt).
The following table reconciles the aforementioned non-IFRS measures:
($000s) |
| March 31, 2026 |
|
| December 31, 2025 |
| ||
Cash and cash equivalents |
|
| 7,051 |
|
|
| 5,744 |
|
Accounts receivable |
|
| 8,978 |
|
|
| 6,675 |
|
Prepaids and deposits |
|
| 495 |
|
|
| 220 |
|
Risk management contracts |
|
| 110 |
|
|
| 141 |
|
Accounts payable |
|
| (8,697 | ) |
|
| (8,154 | ) |
Adjusted working capital |
|
| 7,937 |
|
|
| 4,626 |
|
Lease obligations |
|
| (286 | ) |
|
| (324 | ) |
Net surplus |
|
| 7,651 |
|
|
| 4,302 |
|
Remove: Current portion of risk management contracts |
|
| (110 | ) |
|
| (141 | ) |
Remove: Lease obligations |
|
| 286 |
|
|
| 324 |
|
Adjusted net surplus |
|
| 7,827 |
|
|
| 4,485 |
|
"Funds Flow" includes all cash from (used in) operating activities and is calculated before the change in non-cash working capital. "Funds Flow Basic ($/share)" and "Funds Flow Diluted ($/share)" are calculated by dividing Funds Flow by the weighted average number of basic shares and weighted average number of diluted shares outstanding, respectively, for the relevant period, as presented within the Company's interim condensed consolidated financial statements for the three months ended March 31, 2026. These are considered key measures of operating performance and capital management as they demonstrate the Company's ability to generate the cash necessary to repay debt and fund capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, each of these provide useful measures of ROK's ability to generate cash that are not subject to short-term movements in non-cash operating working capital.
The following table reconciles cash flow from operating activities to Funds Flow:
($000s) |
|
| Q1 2026 |
|
|
| Q1 2025 |
|
Cash flows provided by operating activities |
|
| 1,810 |
|
|
| 3,037 |
|
Change in non-cash working capital |
|
| 2,014 |
|
|
| 4,112 |
|
Funds Flow |
|
| 3,824 |
|
|
| 7,149 |
|
Conversion Measures
Production volumes and reserves are commonly expressed on a barrel of oil equivalent ("boe") basis whereby natural gas volumes are converted at the ratio of 6 thousand cubic feet ("Mcf") to 1 barrel of oil ("bbl"). Although the intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants, boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In recent years, the value ratio based on the price of crude oil as compared to natural gas has been significantly higher than the energy equivalency of 6:1 and utilizing a conversion of natural gas volumes on a 6:1 basis may be misleading as an indication of value.
Abbreviations
bbls/d bopd |
| barrels per day barrels per day |
boepd |
| barrels oil equivalent per day |
IP |
| Initial Production |
NGLs |
| Natural Gas Liquids |
Mboe Mg/l |
| Thousands of barrels of oil equivalent Milligrams per Litre |
MMboe |
| Millions of barrels of oil equivalent |
PDP |
| Proved Developed Producing |
TP |
| Total Proved Reserves |
TPP |
| Total Proved and Probable Reserves |
WTI CA$ US$ |
| West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade Canadian dollars U.S. dollars |
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 and the expected results thereof. Forward-looking statements are necessarily based on several 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 www.sedarplus.ca; 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 because 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.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/oil-gas-and-energy/rok-resources-files-financial-results-and-management-discussion-and-analysis-for-1171141
