ROK Resources (ROK) Update - June 27

[dan_s]

I just posted the updated profile and forecast for ROK to the EPG website.

Key to my valuation at the bottom of page 1 is that ROK paid off 100% of their interest-bearing term debt in May; lowering their interest expense by almost $1Cdn million per month. Free cash flow from operations and the sale of some non-core assets generated the cash to pay off all of their debt and hang on to 85% of their current production and 100% of the properties that give them high-quality running room in SE Saskatchewan.

ROK's summer drilling program (fully funded by operating cash flow) that kicks off in July is expected to generate strong production growth ramping up from September through November. Buy this Canadian Junior before the market figures it out.