ROK Resources Inc. ("ROK" or the "Company") has filed its interim Financial Results and Management Discussion & Analysis for the three and nine months ended September 30, 2022.
Financial and Operating Highlights
In Q3 2022, the Company realized production volume of 321,989 total boe (3,500 boe/d), resulting in crude and natural gas sales of $26.6 million and funds from operations of $14.5 million. This equates to an operating netback, after hedging, per boe of $43.10 and an operating income profit margin of 52.3%.
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.
Third Quarter Highlights:
- Record production of 3,500 boe/d (69% liquids), an increase of 14.6% compared to Q2 2022
- Reduction of Net Debt to $30.7 million, a 20% reduction from Q2 2022
- Drilled the best producing well in Saskatchewan during the month of July with average production rate over the first 30 days of production of approximately 300 boe/d
- Conducted Phase 1 of a reactivation/workover program at Kaybob, resulting in capital efficiencies of $7,000 to $10,000 per boe and the identification of 9 gross (9 net) additional operations planned for Q4 2022/ Q1 2023
- Realized hedge gain on commodity contracts of $1,552,524
