from ROK Resources Inc. (CVE:ROK)
ROK Resources Files Financial Results and Management Discussion & Analysis for Second Quarter of 2026
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESS Newswire / August 20, 2026 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) announces that the Company has filed its Financial Results and Management Discussion & Analysis ("MD&A") for the three and six month periods ended June 30, 2026, and provides an update on its financial and operating performance, including continued execution of its 2026 capital program and positive early results from its Southeast Saskatchewan drilling program.
ROK enters the second half of 2026 from a position of financial strength, with a fully funded capital program, positive liquidity and early drilling results that are exceeding the Company's type-curve expectations. This financial position provides ROK with the flexibility to advance its organic development strategy while continuing to evaluate additional opportunities to enhance shareholder value.
With an Adjusted Net Surplus of $9.9 million as at June 30, 2026, together with forecasted cash flow and proceeds from the previously announced sale of non-core assets that closed in Q3 2026, ROK intends to maintain a disciplined and returns-focused approach to capital allocation. The Company will continue to assess opportunities to deploy capital toward initiatives expected to generate the most attractive risk-adjusted returns and enhance value on a per-share basis. These opportunities may include expanding or accelerating the Company's drilling program, pursuing accretive acquisitions that complement and enhance ROK's existing asset base, purchasing common shares under its normal course issuer bid ("NCIB"), and considering other forms of return of capital to shareholders, in each case subject to market conditions, available opportunities and applicable approvals.
ROK continues to advance its 2026 capital program, currently drilling its seventh well, with three wells on production and the remaining drilled wells expected to be brought on production in the coming weeks. For the month of August, the three new wells have added approximately 400 boepd (80% liquids) to ROK's corporate production base, more than replacing the production sold in the asset disposition in Q3 2026. This early production performance is encouraging and will expand ROK's drilling inventory base, supporting additional capital allocation toward organic production growth.
Q2 2026 Highlights
Significantly Strengthened Financial Position: Adjusted Net Surplus increased to $9.9 million as at June 30, 2026, compared to $4.5 million at December 31, 2025, representing an increase of approximately 120%;
Strong Initial Production Rates on Drill Program: Encouraging initial daily production volumes, adding high netback oil to the Company's corporate production base and increasing ROK's Southeast Saskatchewan light oil drilling inventory;
Production In-Line with Forecast: Average Q2 2026 production of 3,037 boepd (67% liquids);
Significant Commodity Price Upside Exposure: With only ~10% of ROK's oil production currently hedged through September 2026, the Company retains significant exposure to commodity price upside;
Strategic Non-Core Asset Disposition and ARO Reduction: Closed the previously announced sale of non-core assets in Q3 2026 for $8.0 million in cash proceeds, subject to customary closing adjustments, while also reducing the Company's associated asset retirement obligations ("ARO") by approximately 16%; and
Multiple Avenues for Value Creation: ROK's financial position and internally funded capital program provide the Company with flexibility to pursue the highest-return opportunities available, including incremental organic development, NCIB, accretive acquisitions and potential returns of capital to shareholders.
Operating (expressed in $000s except where stated) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 | ||||||||||||
Oil and Natural Gas Sales | 20,998 | 16,641 | 36,872 | 37,621 | ||||||||||||
Royalties | (3,185 | ) | (2,558 | ) | (5,782 | ) | (6,036 | ) | ||||||||
Operating Expenses | (9,592 | ) | (10,543 | ) | (18,259 | ) | (19,574 | ) | ||||||||
Operating Income | 8,221 | 3,540 | 12,831 | 12,011 | ||||||||||||
Processing and other income (1) | 616 | 415 | 994 | 914 | ||||||||||||
Realized gain on commodity contracts | 118 | 6,869 | 395 | 6,535 | ||||||||||||
Funds from Operations | 8,955 | 10,824 | 14,220 | 19,460 | ||||||||||||
Average daily production | ||||||||||||||||
Crude oil (bbl/d) | 1,662 | 2,030 | 1,703 | 2,098 | ||||||||||||
NGLs (boe/d) | 364 | 376 | 351 | 396 | ||||||||||||
Natural gas (mcf/d) | 6,065 | 7,940 | 5,870 | 8,041 | ||||||||||||
Total (boe/d) | 3,037 | 3,729 | 3,032 | 3,834 | ||||||||||||
Operating Netback per boe | ||||||||||||||||
Oil and Natural Gas Sales | 75.98 | 49.03 | 67.19 | 54.21 | ||||||||||||
Royalties | (11.52 | ) | (7.54 | ) | (10.53 | ) | (8.70 | ) | ||||||||
Operating Expenses | (34.71 | ) | (31.07 | ) | (33.27 | ) | (28.20 | ) | ||||||||
Operating Netbacks ($/boe) | 29.75 | 10.42 | 23.39 | 17.31 | ||||||||||||
Funds from Operations ($/boe) | 32.40 | 31.90 | 25.91 | 28.04 | ||||||||||||
Operating Income Profit Margin | 39.2 | % | 21.3 | % | 34.8 | % | 31.9 | % | ||||||||
Funds from Operations Profit Margin | 42.6 | % | 65.1 | % | 38.6 | % | 51.7 | % | ||||||||
0.42642801 | 0.65062207 | 0.38562286 | 0.51724774 | |||||||||||||
Share information | ||||||||||||||||
Common shares outstanding, end of period | 218,418,315 | 212,613,817 | 218,418,315 | 212,613,817 | ||||||||||||
Weighted average basic shares outstanding | 218,418,348 | 211,916,317 | 218,418,348 | 211,916,317 | ||||||||||||
Weighted average diluted shares outstanding | 218,418,348 | 265,105,802 | 218,418,348 | 265,105,802 | ||||||||||||
Financial (expressed in $000s except where stated) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 | ||||||||||||
Net income | 652 | 3,278 | 3,033 | 1,733 | ||||||||||||
Basic ($/share) | 0.00 | 0.01 | 0.01 | 0.01 | ||||||||||||
Diluted ($/share) | 0.00 | 0.01 | 0.01 | 0.01 | ||||||||||||
Funds flow | 6,653 | 8,977 | 10,477 | 16,126 | ||||||||||||
Basic ($/share) | 0.03 | 0.04 | 0.05 | 0.07 | ||||||||||||
Diluted ($/share) | 0.03 | 0.04 | 0.05 | 0.07 | ||||||||||||
Expenditures on property, plant and equipment | 5,031 | 1,034 | 5,536 | 1,703 | ||||||||||||
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) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 | ||||||||||||
Oil and natural gas sales | 20,998 | 16,641 | 36,872 | 37,621 | ||||||||||||
Royalties | (3,185 | ) | (2,558 | ) | (5,782 | ) | (6,036 | ) | ||||||||
Operating expenses | (9,592 | ) | (10,543 | ) | (18,259 | ) | (19,574 | ) | ||||||||
Operating Income | 8,221 | 3,540 | 12,831 | 12,011 | ||||||||||||