ROK Resources publishes Florenc – GuruFocus.com


NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR US BROADCAST

REGINA, SK / ACCESSWIRE / October 14, 2021 / ROK Resources Inc. (“Republic of Korea“or the”Society“) (TSXV: ROK) is pleased to announce the completion of an independent valuation of the reserves of its recently acquired Florence asset, effective August 31st, 2021, in accordance with National Instrument 51-101 – Reporting Standards for Oil and Gas Activities and in accordance with the Canadian Oil and Gas Evaluation Handbook (the “Florence Property Report”).

Florence property report does not include the company’s existing business reserve base at Glen Ewen, which was valued as of December 31st, 2020 by GLJ and press release February 24e, 2021.

Florence Property Report

The Florence Property Report, prepared by Sproule Associates Limited (“Sproule”), valued the assets in Southeast Saskatchewan (the “Florence Asset”) that ROK acquired on April 1.st, 2021 for cash consideration of $ 4.0 million plus 4,250,000 ROK Class B common shares. The net present value of future net income (net of royalties, operating costs and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% (” 10% NPV ”) of total proven and probable reserves is estimated at $ 16.2 million, or $ 0.22 per basic share outstanding.

Summary of gross oil and gas reserves and net present value of income:

Before income taxes at August 31, 2021 – Forecast prices and costs

10% NPV
($ millions)

NPV per boe1
$ / boe

Proven Developed Production

$ 1.94

$ 22.83

Total proven

$ 7.22

$ 20.46

Proven More Likely

$ 16.18

$ 22.88

  1. Florence Property Report used Sproule’s price forecast in effect on August 31, 2021

Florence Property Report Gross Oil and Gas Summary:

Light and medium oil

Natural
Gas

Natural gas liquids

Total beep

RESERVES CATEGORY

Mbbl

MMcf

Mbbl

Mboe

Proven Developed Production

71.6

41

6.5

84.9

Proven non-production

0

0

0

0

Proven undeveloped

227.3

124

19.9

267.8

Total proven

298.9

164

26.5

352.8

Likely

300.5

165

26.5

354.6

Proven More Likely

599.5

329

53

707.3

Natural gas: 6.0 MMcf / boe

Qualified person

The technical content of this press release has been reviewed and approved by Bryden Wright, P.Eng., A qualified person for the purposes of National Instrument 41-101.

About the Republic of Korea

ROK is primarily engaged in exploration for oil and natural gas development activities in Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and the common shares of ROK trade on the TSX Venture Exchange under the symbol “ROK”.

For more information, please contact:
Cameron Taylor, President and CEO
Lynn Chapman, Chief Financial Officer
Telephone: (306) 522-0011
E-mail: [email protected]

Oil and gas disclosures

Management uses oil and gas metrics for its own performance measures and to provide shareholders with metrics to compare the Company’s activities over time. Readers are cautioned that information provided by these measures, or which may be derived from the measures presented in this press release, should not be used for investment or other purposes.

The term “boe” or barrels of oil equivalent can be misleading, especially if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas per barrel of oil equivalent (6 Mcf: 1 barrel) is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent an equivalence of value at the wellhead. In addition, since the value ratio based on the current price of crude oil, relative to natural gas, is significantly different from the energy equivalence of 6: 1; using a 6: 1 conversion ratio can be misleading as a value indication.

Caution regarding forward-looking information

This press release includes certain “forward-looking statements” under applicable Canadian securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the objectives, goals or future plans of the Company with respect to the pursuit of objectives and expectations regarding the expected results thereof. this. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other legal, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; these additional risks set out in ROK’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this press release. Although the Company believes that the assumptions and factors used in the preparation of forward-looking statements are reasonable, one should not place undue reliance on such statements, which speak only as of the date of this press release, and no Assurance cannot be given that such statements events will occur within the disclosed time frame or not at all. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the Bourse nor its regulatory services provider (as that term is defined in the policies of the Bourse) accepts responsibility for the adequacy or accuracy of this release.

THE SOURCE: ROK Resources Inc.

See the source version on accesswire.com:
https://www.accesswire.com/668090/ROK-Resources-Releases-Florence-Property-Reserves-Update


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