Rok Resources, Inc. Class B · TSXV:ROK
Rok Resources, Inc. Class B — Investor Presentation (October 2022)
24 slides from Rok Resources, Inc. Class B's investor presentation, October 2022
Slide 1: Investor Presentation October 2022
INVESTOR PRESENTATION October 2022
Slide 2: Experienced Leadership Team | Co-Founders
Experienced Leadership Team | Co-Founders Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil Corp., Cam Taylor Villanova Oil Corp. & Villanova Resources Inc. Mr. Taylor is a geoscientist with over 30 Chairman & years of experience in oil & gas exploration and development.
Slide 3: Solid Track Record of Execution and Value Creation
Solid Track Record of Execution and Value Creation Management brings a solid track record of execution and value creation through the development, from infancy to the successful divestitures, of four successive companies generating shareholder returns of 3x Previous Experience 4 Successive Company E
Slide 4: Company Profile | Snapshot
Company Profile | Snapshot Corporate Production Profile ROK Resources Inc. (ROK) is a domestic oil & gas company focused on growth through the exploitation of conventional oil properties in Alberta and Saskatchewan and trades on the ~3,300 TSX Venture Exchange under the trading symbol ROK. boe/d Kay
Slide 5: 2022 Q2 Highlights
2022 Q2 Highlights ✓ Operating income of $18.3M ✓ Record operating netback of $65.99/boe ✓ Net debt reduced from $62.54M to $38.39M ✓ Completed the first half of SE Sask drill program ✓ Drilled highest producing oil well in SE Sask for July 2022 ✓ Closed and fully integrated FCL acquisition 5 TSX.V:
Slide 6: Capitalization | Corporate Profile
Capitalization | Corporate Profile 2022 Forecast1 Exit 2022 Production Target (71% liquids) 3,500 boe/d Exit 2022 Net Debt $30 mm 2022 Capex $20 mm 2022E Net Operating Income (NOI) $61 mm 2022E Debt Adjusted Cash Flow (DACF) $56 mm 2022E Debt Adjusted Free Cash Flow (DAFCF) $36 mm EV/boe/d $28k/boe/
Slide 7: 2022E Oil Price Sensitivity
2022E Oil Price Sensitivity ROK is hedged at ~75% PDP at highly attractive oil prices 2022E Net Operating Income ($mm) 2022E Debt Adjusted Cash Flow ($mm) $80.0 $75.0 $80.0 Capex Interest, Principal & Cash Sweeps FCF $70.0 $70.0 $70.0 $65.0 $70.0 $65.0 $60.0 $60.0 $60.0 $55.0 $60.0 $20.2 $55.0 $15.7
Slide 8: Hedge Contracts
Hedge Contracts Quarterly Hedging Summary WTI Hedges (24-months) bbls/d bbls/d US$/bbl WTI Swaps Natural Gas Swaps1 3,000 2,500 $125.00 2022E oil production Starting Month Bbls US$/bbl Mmbtu US$/mmbtu 2,500 2,000 $100.00 2,000 1,468 Apr-22 133,604 $113.63 342,248 $4.48 1,500 1,414 1,339 1,253 $75.00
Slide 9: Value Proposition | Peer Comparison
Value Proposition | Peer Comparison ROK provides an attractive value proposition for investors, with valuation multiples trailing peers at current pricing, while leading the peer group in debt adjusted free cash flow yield Select Domestic Oil Weighted Producers 2022E EV/DACF (x) 2022E EV/MBOE/d ($/m
Slide 10: Southeast SK Assets | Frobisher
Southeast SK Assets | Frobisher FROBISHER $80 WTI & $4 AECO $90 WTI & $5 AECO $100 WTI & $6 AECO DCE Cost $1.2MM $1.2MM $1.2MM Drilling Locations IP30 (Bopd) 175 175 175 EUR (Mbbl/Mboe) 75,000/85,000 75,000/85,000 75,000/85,000 • 20+ booked locations F&D Cost ($/boe) $14.11 $14.11 $14.11 Netback ($/
Slide 11: NW AB Assets | Kaybob Cardium & Montney
NW AB Assets | Kaybob Cardium & Montney • 20+ sections of high WI land prospective for Cardium, Dunvegan, Bluesky, Montney • 12 booked locations • 2023 capital program expected to include Cardium and/or Montney development CARDIUM 1-MILE MONTNEY 2-MILE $100 WTI & $6 AECO $100 WTI & $6 AECO DCE Cost
Slide 12: Corporate Reserves | April 1, 2022
Corporate Reserves | April 1, 2022 Reserves Volumes and Value1 Reserves Volumes and Value (B-Tax NPV-10%)1 Reserves Value (Before Tax incl. Reserves Volumes Net Debt @ April 1, 2022)4 Oil Gas NGL Total Liquids NPV-10% NPV-10% mbbl mmcf mbbl mboe % $mm $/share2 Prob. Prob. PDP 6.2mmboe $83mm PDP PDP
Slide 13: Analyst Coverage | Research
Analyst Coverage | Research Analysts below have independently covered ROK Resources. This list is informational, and opinions, estimates or forecasts are independent. Bill Newman Contact: [email protected] Vice President & Senior Analyst Kirk Wilson Managing Director, Contact: kwilson@beac
Slide 14: Catalysts For Growth
Catalysts For Growth Why Invest in ROK Resources? Strong Free Cash Flow Proven Management Team Closed transformational~3,000 Boepd acquisition in March 2022. Substantial Upside Update on Q3 Financials Release 2023 Kaybob & Operational Budget & Operational Update Forecast Results October 2022 Novembe
Slide 15: Appendices
ROK Resources | APPENDICES 15 TSX.V: ROK
Slide 16: Appendix I | Board of Directors
Appendix I | Board of Directors Cam Taylor Chairman & Chief Executive Officer Geoscientist with over 30 years of international O&G experience with Pan Orient Energy, Orion Securities, Jeffrey Chisholm Bow Valley Energy, Canadian Occidental Petroleum (Nexen), PanCanadian Petroleum (Encana) and Niko I
Slide 17: Appendix II | Debt Facility
Appendix II | Debt Facility Amortization Chart - Cash Sweeps Amortization Chart - No Cash Sweeps Average Monthly Monthly Principal Average Monthly Projected Cash Principal Months Amount Interest Sweep Principal Outstanding Months Amount March – December 2022 2,031,250 496,876 3,239,246 39,698,254 Ma
Slide 18: Appendix III | Reserve Report Pricing
Appendix III | Reserve Report Pricing (April 1, 2022 ) 18 TSX.V: ROK
Slide 19: Appendix IV | Strategy & Focus
Appendix IV | Strategy & Focus Operational Excellence Superior Risk-Adjusted Optimization of base Returns production through enhanced Multi-year, low-risk development production techniques and drilling inventory underpinned by cost controls strong base production Capital Discipline Accretive Opportu
Slide 20: Appendix V | Lithium Exploration
Appendix V | Lithium Exploration • ROK’s lithium diversification is a highly opportunistic strategy, with access to Lithium Lands untapped lithium properties in Saskatchewan: • ROK owns 25% of private corporation Hub City Lithium Corp. and serves Land Position as Operations Manager for the company ~
Slide 21: Appendix VI | CO2 Sequestration Process
Appendix VI | CO2 Sequestration Process This is a major step in ROK’s vision to be a sustainable and environmentally responsible operator by offsetting ~86% of its current CO2 emissions and by supporting its goal to become a net-negative CO2 emitter. CO2 Sequestration Process1 Prevent CO2 from being
Slide 22: Appendix VII | Strategic Acquisition
Appendix VII | Strategic Acquisition Base Production Significant Free Substantial Land Excellent ESG Drives Material NOI Funds Flow Position & Characteristics Generation Development Upside ✓ Acquisition included 2,962 ✓ Free funds flow driven by a ✓ 1,380,556 gross (333,347 net) ✓ 2.1% strategic int
Slide 23: Disclaimer | General Advisory
Disclaimer | General Advisory This presentation includes information that constitutes “forward-looking information” or “forward-looking statements”. More particularly, this presentation contains statements concerning expectations regarding the successful implementation of drilling activities on asse
Slide 24: ROK Resources Inc. Contact
ROK Resources Inc. 1911 Broad Street Regina, SK S4P 1Y1 Phone: (306) 522-0011 Email: [email protected] Website: www.rokresources.ca