ROK Resources Inc. has closed on its previously announced acquisition (the "Acquisition") from a publicly traded company of certain producing oil and gas assets in Southern Saskatchewan along with associated land leases and related assets and facilities (including certain seismic data)(the "Assets"). The Acquisition has an effective date of June 1, 2020. The total purchase price paid for the Assets was $70,000.
The acquisition properties are located within the Glen Ewen area of Southeast Saskatchewan, targeting the Midale and Frobisher formations. Prior to a partial shut-in on April 1, 2020 due to market pricing, production from these Assets were approximately 85 barrels of oil per day (150 barrels of oil equivalent per day when including gas and liquids) from 13 wells for the month of March 2020. The acquired Assets also include associated facilities and undeveloped land directly adjacent to the Company's existing land base within the project area. This contiguous area now allows for cost effective development of ROK's previously undeveloped lands utilizing existing processing capacity, water disposal and pipeline infrastructure. As part of the Acquisition, ROK has also entered into a third party processing agreement with the seller for a portion of the volumes on a fee basis. The acquisition package also contains associated liabilities, including future abandonment obligations and 27 suspended wells and 11 inactive facility sites, which will be evaluated for future reactivation.
