Rubellite Energy (RBY.TO and RUBLF) Update - Sept 16

[dan_s]

Rubellite Energy has been added to our Small-Cap Growth Portfolio. It replaces Granite Ridge Resources (GRNT).

My forecast/valuation model and my initial profile on the Company has been posted to the EPG website. The profile will be sent to all EPG members this afternoon.

In Harry's (The Petroleum Economist) latest report dated 9-13-2024, RBY.TO is ranked #22 out of the 82 companies he follows.

Rubellite Energy is a pure play on Canadian Heavy Oil.
> Production increased by 97.7% year-over-year in 2023.
> Q2 2024 production was 4,503 BOPD, 100% heavy oil. Realized oil price net of cash settlements on their hedges was $83.00Cdn/bbl.
> They are going to report a big increase in production from Q2 to Q3.
> The Company's guidance for 2024 exit rate of production is 7,500 to 7,900 BOPD, 100% oil.
> This year's drilling program should be funded entirely by operating cash flow.
> On August 2nd, the Company closed the Buffalo Mission Acquisition that adds a lot of high-quality "Running Room".
> This is what jumped out at me on Saturday: RBY.TO is currently trading at less than 50% of PV10 Net Asset Value (NAV) based on their December 31, 2023 3rd party reserve report. Their 2024 drilling program and the Buffalo Mission Acquistion should push their NAV over my current valuation, which should be confirmed by their December 31, 2024 3rd party reserve report.

Read my profile carefully and spend some time on the Company's website: https://rubelliteenergy.com/