RUBELLITE ENERGY CORP. REPORTS RECORD PRODUCTION AND ADJUSTED FUNDS FLOW PER SHARE IN SECOND QUARTER 2025 FINANCIAL AND OPERATING RESULTS

Executive Summary

• Rubellite Energy Corp. reported record second quarter 2025 financial and operating results, driven by significant production growth and improved cost efficiencies.
• The company delivered record heavy oil sales production of 8,637 bbl/d and total sales production of 12,425 boe/d, both exceeding the high end of guidance.
• Adjusted funds flow surged 81% year-over-year to $37.3 million ($0.40 per share), while net debt decreased 8% to $142.4 million.

Key Details

• Production Performance:
  • Heavy oil sales production averaged 8,637 bbl/d in Q2 2025, up 4% from Q1 2025 (8,339 bbl/d) and 92% from Q2 2024 (4,503 bbl/d).
  • Total sales production averaged 12,425 boe/d (72% heavy oil and NGL), exceeding the high end of guidance.
  • Production growth was driven by 11 new wells brought online at Figure Lake and Frog Lake.
  • Figure Lake gas plant added an average of 3.0 MMcf/d of solution gas sales plus associated liquids (17 boe/d).
• Financial Results:
  • Adjusted funds flow was $37.3 million ($0.40 per share), an 81% increase from Q2 2024 ($20.7 million or $0.33 per share).
  • Net income was $16.1 million ($0.17 per share), compared to $12.4 million ($0.20 per share) in Q2 2024.
  • Cash costs were $20.7 million ($18.26/boe), down 19% on a per boe basis from Q2 2024 ($22.58/boe).
  • Net debt stood at $142.4 million as of June 30, 2025, a decrease of 8% from $154.0 million at year-end 2024.
  • Available liquidity was $32.4 million, comprising the $140.0 million credit facility limit less $106.2 million in borrowings and $1.4 million in letters of credit.
• Capital Expenditures:
  • Exploration and development capital expenditures totaled $23.8 million in Q2 2025.
  • This included drilling, completing, equipping, and tying-in 5 net multi-lateral horizontal wells at Figure Lake and 6 net at Frog Lake.
  • Land and other spending totaled $7.3 million, including $0.5 million for seismic purchases.
• Operational Updates & Drilling Results:
  • Figure Lake: Average IP30 of 271 bbl/d and IP60 of 267 bbl/d for 2025 development wells, outperforming the McDaniel Tier 1 Type Curve (177 bbl/d IP30 and 169 bbl/d IP60). Two step-out delineation wells were drilled; the 4-32 Well showed early IP15 of 58 bbl/d.
  • Frog Lake: Production averaged 2,539 bbl/d (up 5% QoQ). Development wells using Oil-Based Mud (OBM) achieved average IP30 of 140 bbl/d and IP60 of 128 bbl/d, exceeding the McDaniel Waseca North Type Curve (107 bbl/d IP30 and 104 bbl/d IP60).
  • Marten Hills: Commenced a "bottoms up" waterflood in Q2 2025.
  • East Edson: Drilling of four gross (2.0 net) wells began in early July after Q2 delays due to weather.
• Guidance and Outlook:
  • Full-year 2025 exploration and development capital spending guidance raised to $100–$110 million (from $95–$110 million).
  • Heavy oil sales volumes for 2025 expected to average 8,200–8,400 bbl/d (44–48% YoY growth).
  • Total production sales volumes for 2025 expected to average 12,200–12,400 boe/d.
  • Heavy oil wellhead differential guidance improved to $4.00–$4.50/bbl (from $5.00–$5.50/bbl).
  • Operating cost guidance improved to $6.50–$7.25/boe (from $7.00–$7.75/boe).
  • Planned H2 2025 activity includes drilling 10 net wells at Figure Lake, 7 net Waseca wells at Frog Lake, and 2 net wells at East Edson.