ROK Resources Announces 2026 Capital Budget and 2025 Year-End Reserves

• On 9 Apr 2026 ROK announced its 2026 capital budget of $20.4 million focused on drilling/completing ten gross (nine net) new wells in core Saskatchewan assets (Frobisher, Midale, Viking).
• The plan aims to lift average production from ~3,600 boe/d (FY‑25) to ~4,000 boe/d by Q4 2026 (≈33% increase), including re‑activation of the 280 boe/d Kaybob gas pad.
• Funding is projected to come 100 % from working capital, assuming a minimum WTI price of $70/bbl for 2026.
• FY‑25 reserves grew 30% YoY, with total proved + probable of 19,431 Mboe and NAV of $0.82/share (proved + probable).
• Debt was eliminated in 2025; cash & working capital sit at roughly $5 million (excluding the disputed $3 million escrow from the terminated go‑private deal).
• Hedge position remains light – ~90 % unhedged, but new crude swaps cover ~10 % of output at $75‑$83/bbl.

• New capital allocation: The $20 M capex is a fresh commitment beyond the FY‑25 operating spend (~$5 M). It signals confidence in reserve upside and cash generation, which the market had not priced in.
• Production lift: A 33 % increase to ~4,000 boe/d is material for a company of this size; it should improve cash flow and F&D recycle ratios (already at 2.4×).
• Balance‑sheet strength: Zero debt and positive cash flow in FY‑25 remove financing risk, allowing the budget to be funded internally – a rare situation for small explorers.
• Risk factors: The plan hinges on WTI staying ≥ $70/bbl; a sustained price drop would pressure cash generation. Hedge coverage remains minimal, exposing earnings to commodity volatility.
• Compared with prior announcements (shareholder vote, court order, termination of the go‑private deal), this budget is incremental but materially better than expectations because it delivers a clear growth path without dilutive financing. Hence the rating is Material – Positive.

ROK Resources Inc. is an independent oil & gas producer focused on mature, low‑cost fields in southeast Saskatchewan (Frobisher, Midale, Viking). The flagship growth initiative for 2026 is the drilling/completion of ten new wells plus re‑activation of Kaybob, targeting a production plateau of ~4,000 boe/d by year‑end.