RUBELLITE ENERGY CORP. REPORTS THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS WITH ENHANCED 2025 GUIDANCE

Executive Summary

• Rubellite Energy reported Q3 2025 financial and operating results, showing a 55% increase in adjusted funds flow to $35.7 M ($0.38/share) versus Q3 2024.
• Production rose sharply: conventional heavy‑oil sales averaged 8,338 bbl/d (up 40%) and total sales production reached 12,122 boe/d (up 104%).
• Capital spending for the quarter was $33.7 M on drilling and completions; net debt fell to $138.4 M, while available liquidity remained at $48.0 M.

Key Details

• Financial Highlights
• Adjusted funds flow: $35.7 M (up 55% YoY); cash costs: $18.6 M ($16.66/boe, down 33%).
• Net income: $5.6 M ($0.06/share) vs. $15.0 M a year earlier.

• Net debt reduced 10% to $138.4 M; liquidity of $48.0 M (borrowing limit $140 M less borrowings $90.6 M).

• Production Highlights

• Conventional heavy‑oil sales: 8,338 bbl/d (↑40% YoY).
• Total sales production: 12,122 boe/d (↑104%).

• Figure Lake & East Edson added 11 gross (9.0 net) heavy‑oil wells; West Central program added 2 liquids‑rich gas wells.

• Capital Expenditures

• Exploration & development capex: $33.7 M – drilling 5 horizontal wells at Figure Lake, 7 at Frog Lake, and 2 gas wells at East Edson.

• $1.5 M spent to expand Figure Lake gas plant capacity from 3.0 MMcf/d to 6.4 MMcf/d.

• Operational Updates

• Figure Lake: 4 gross development horizontals drilled (IP30 avg 259 bbl/d, IP60 avg 239 bbl/d) exceeding type‑curve expectations; step‑out well in Edwand produced IP30 48 bbl/d, IP60 36 bbl/d.
• Frog Lake: Production 2,697 bbl/d (↑6% QoQ); OBM mud system trial confirmed cost and performance benefits. Recent wells achieved IP30 133‑159 bbl/d, surpassing McDaniel curves.

• East Edson: Two gross gas wells brought on stream; average IP30 1,165 boe/d (above type curve).

• Guidance & Outlook

• Q4 2025 capex forecast: $30‑$35 M, bringing full‑year 2025 capex to $110‑$115 M.
• Revised 2025 production guidance: total sales volume 12,325‑12,400 boe/d (up from prior 12,200‑12,400). Heavy‑oil sales forecast 8,325‑8,400 bbl/d.

• Operating cost guidance improved to $6.50‑$7.00/boe; transportation cost guidance lowered to $5.25‑$5.50/boe.

• Other Notable Items

• Sold undeveloped land for $5.5 M in Q3 and closed an additional $2.3 M sale after quarter‑end, used to fund capex and reduce debt.
• Initiated waterflood pilot at Marten Hills; continued natural‑gas‑based re‑injection pilot at Figure Lake for EOR.

Notable Quotes

• “Our Q3 results reflect the successful execution of our drilling program and disciplined capital management, positioning us well for a strong remainder of 2025.” – Susan L. Riddell Rose, President & CEO
• “The expansion of the Figure Lake gas plant and the adoption of OBM mud technology are delivering tangible cost efficiencies and production gains.” – Ryan A. Shay, VP Finance & CFO