ROK Resources (ROK.V and ROKRF) Update - June 4
Posted: Wed Jun 04, 2025 9:21 am
The new CEO of ROK Resources, Bryden Wright will be speaking at our next Houston luncheon on June 19th.
ROK recently provided an operations update.
Plus they have confirmed that:
> All of their outstanding warrants have expired, significantly reducing the company's fully diluted share count.
> Cash proceeds from the liquidation of their WTI crude oil hedges ($6.3Cdn million) was partially used to TOTALLY PAY OFF ROK's credit facility, which means that ROK has no interest-bearing debt.
> With this year's drilling program reduced and not starting until June, ROK has built a nice cash balance and should generate more than enough operating cash flow to fund the 2025 drilling program.
> Current production mix is approximately 56% crude oil, 10% NGLs and 34% natural gas.
> Natural gas prices are rising in Western Canada. Thanks to the start-up of LNG Canada they should move closer to U.S. gas prices in 2H 2025. Higher gas prices should give ROK a nice revenue boost in 2H 2025. See LNG Canada Updates here: https://www.lngcanada.ca/
My updated forecast/valuation model, which has been reviewed by ROK, has been posted to the EPG website.
ROK recently provided an operations update.
Plus they have confirmed that:
> All of their outstanding warrants have expired, significantly reducing the company's fully diluted share count.
> Cash proceeds from the liquidation of their WTI crude oil hedges ($6.3Cdn million) was partially used to TOTALLY PAY OFF ROK's credit facility, which means that ROK has no interest-bearing debt.
> With this year's drilling program reduced and not starting until June, ROK has built a nice cash balance and should generate more than enough operating cash flow to fund the 2025 drilling program.
> Current production mix is approximately 56% crude oil, 10% NGLs and 34% natural gas.
> Natural gas prices are rising in Western Canada. Thanks to the start-up of LNG Canada they should move closer to U.S. gas prices in 2H 2025. Higher gas prices should give ROK a nice revenue boost in 2H 2025. See LNG Canada Updates here: https://www.lngcanada.ca/
My updated forecast/valuation model, which has been reviewed by ROK, has been posted to the EPG website.