INVESTOR PRESENTATION - April 2022 - ROK Resources Inc.
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INVESTOR PRESENTATION
April 2022
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. Since graduating with a
Chief Executive Officer BSc. in Geophysics in 1988, he has worked the Williston Basin, Foothills, deep Devonian
and heavy oil exploration within Canada.
Co-founder of ROK Resources Inc., and former Vice President Engineering of Villanova 4
Bryden Wright | P.Eng. Oil Corp. Mr. Wright has over 14 years of experience in Williston Basin oil exploration and
Chief Operating Officer production, specifically SE Saskatchewan conventional and unconventional oil plays. He
holds an BSc in Petroleum Systems Engineering and is a registered Professional Engineer
with APEGS (Saskatchewan) and APEGA (Alberta).
Co-founder of ROK Resources Inc., and former Vice President Land with Villanova 4 Oil
Jared Lukomski Corp. Mr. Lukomski has over 14 years of experience in leading land related initiatives.
Sr. Vice President Land & Prior to joining the Villanova Group, Jared was employed by Conexus Credit Union from
Business Development 2000 to 2007 where he managed a book of business in his role as a Commercial
Account Manager.
2 TSX.V: ROK
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 Exit Date Production Proceeds
Companies
Villanova Energy
$154 mm 1
Corp.
January 2009 2,389 boe/d $139.2 mm
Equity
Raised Villanova
2 May 2010 1,048 boe/d $130.1 mm
$458mm Resources Inc.
Equity
Proceeds Villanova Oil
3 April 2013 1,597 boe/d $124.4 mm
Corp.
3x
Shareholder
Villanova 4 Oil
Returns 4 July 2018 1,715 boe/d $64.0 mm
Corp.
3 TSX.V: ROK
ROK Resources | Creating Shareholder Value
Mission Vision Values
To operate and To create a diversified Safety Trusted
conduct business in and sustainable Strong Free
Accountability High Quality Management
an honest, safe and resource-based asset Cash Flow
Sustainability Assets Team with
environmentally & portfolio and enhance Generation
Experience in Area
socially responsible shareholder return Innovation
manner through responsible
energy exploration and
extraction
4 TSX.V: ROK
Company Profile | Snapshot Acquired Production
ROK Resources Inc. (ROK) is an independent domestic oil & gas
company focused on growth through the exploitation of
conventional oil properties in Alberta and Saskatchewan. ROK is
led by a reputable management team with a solid track record of 2,962
Kaybob
value creation in the area. 948 boe/d
boe/d
35% liq.
Notable Events (Q1 2022) 55% WI
AB SK SW Sask. SE Sask.
460 boe/d 1,554 boe/d
82% liq. 95% liq.
18% WI 39% WI
$72 million Oversubscribed ~$17 Transaction supports goal
transformational million equity financing and to become a net-negative
acquisition $65 million debt financing CO2 emitter Weyburn Unit
460 boe/d
Capitalization (as April 15, 2022)
50-day Moving Avg. $0.23 Warrants
# Warrants Expiry Date Price
Market Cap. $42.8 mm
4,783,333 June 19, 2022 $0.15
Basic Shares 187.9 mm
7,692,308 July 31, 2022 $0.15
Warrants 141.3 mm
3,550,000 November 9, 2022 $0.30
Options 17.1 mm 7,780,000 May 23, 2023 $0.35
Insider Ownership 15.4% 117,514,704 March 7, 2025 $0.25
5 TSX.V: ROK
Transformational Acquisition & Financing
ROK recently completed the transformational and highly-accretive acquisition of oil-weighted properties (72% liquids) from Federated Co-
operatives Limited (FCL) for total consideration of ~$72 million.
$72 Million Acquisition Funded by
~$17 Million SR Financing and $65 Million Debt Facility
Pre-Acquisition Pro Forma Summary
• Core Areas: • Core Areas: SW &
SE Sask. ✓ ~$17 million oversubscribed prospectus SE Saskatchewan
offering and Alberta
• Bought public offering of subscription
receipts (SR) for gross aggregate
proceeds of ~$17.3 million, including
the full over-allotment option
• Production: 210 boe/d • Average WI: ~50% (excl. Weyburn)
• NOI: ~$2 mm ✓ $65 million senior secured term loan • 2022E Production: 3,278 boe/d1
facility
• Netback: $26/boe • 2022E NOI: ~$63 mm1
• Other: 25% interest in Hub City • Anticipated to be fully repaid within • 2022E Netback: ~$53/boe1
Lithium Corp.(HCL) three years (no prepayment penalties)
• Other: 2.1% WI in Weyburn-Midale CCUS
project; 25% interest in HCL
1. Illustrative forecast assumes average unhedged oil price of US$90/bbl WTI and averaged hedged oil pricing of US$104.42/bbl. Refer to hedging disclosures for further information.
6 TSX.V: ROK
Transformational Acquisition | Strategic Rationale
Base Production Significant Free Substantial Land Excellent ESG
Drives Material NOI Funds Flow Position & Characteristics
Generation Development
Upside
✓ Acquisition included 2,962 ✓ Stable base production ✓ 1,380,556 gross (333,347 net) ✓ 2.1% strategic interest in the
boe/d medium-to-light oil yields significant free funds acres of land acquired world-class Weyburn-Midale The acquisition
weighted production flow potential ✓ Acquired PDP / 2P reserves of CCUS EOR project supports ROK’s
between 27-38° API gravity $96 mm / $168 mm1 transformation into a
✓ Free funds flow driven by a ✓ Offsets 86% of current CO2
✓ Low royalties (~13%) and shallow base decline and ✓ Estimated 2P RLI of ~12 years2 / GHG emissions premier producer
operating costs (~$20/boe) high operating netbacks ✓ High WI and operatorship in characterized by
✓ Supports ROK’s ESG
key growth properties ensures responsible
✓ Pro forma annualized NOI ✓ Compelling capital principles and visions to
substantial control over pace exploration and
of ~$63 million driven off a efficiencies (~$20k/boe/d) become a net-negative
of development development of
~$53/boe netback emitter
✓ 24-month hedging (~75% of diversified and
(including hedges)
ROK’s current production) at sustainable assets
average WTI of US$93.61
1. NPV-10% (B-Tax); Acquired reserves as evaluated by McDaniel & Associates Consultants Ltd. (“McDaniel”) as of October 31, 2021, based on the Sproule Associates Limited (“Sproule”) price forecast dated November 1, 2021.
2. Reserves Life Index (“RLI”) is based on acquired 2P reserves divided by March 2022E estimated production of 3,073 boe/d.
7 TSX.V: ROK
Hedging Program
Quarterly Hedging Summary WTI Hedges (24-months)
bbls/d
bbls/d US$/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
1,468 1,414 1,243 1,195
1,500 1,339 1,140 1,075
1,253 1,243 1,195
Jul-22 128,717 $102.49 335,274 $4.57 1,000
1,140 1,075 $50.00
1,000
Oct-22 123,231 $96.47 325,106 $4.69
500
500 $25.00
Jan-23 115,291 $91.48 308,452 $4.66
-- -
Apr-23 111,886 $88.44 302,721 $3.35 Apr-22
Apr-22 Jul-22
Jul-22 Oct-22
Oct-22 Jan-23
Jan-23 Apr-23
Apr-23 Jul-23 Oct-23 Jan-24
Jul-23 108,775 $85.58 292,751 $3.40 Natural Gas Hedges (24-months)
mmbtu/d US$/mmbtu
Oct-23 104,914 $83.12 283,342 $3.58
6,000 $6.00
2022E natural gas production
Jan-24 98,908 $79.72 263,468 $3.74
5,000 $5.00
Total 925,326 $93.61 2,453,362 $4.09 4,000 3,761 3,684 3,534 $4.00
3,353 3,364 3,217 3,080
2,864
3,000 $3.00
Hedging program represents approximately 75% of ROK’s current
2,000 $2.00
production base at a weighted average WTI price of US$93.61/bbl
and gas price of US$4.09/mmbtu over the next 24-month period 1,000 $1.00
- -
Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24
1. Natural gas contracts are swaps on Henry Hub, shown in $USD. The Company has also secured a swap on
the AECO basis for the same term.
8 TSX.V: ROKTransformational Acquisition | Economics
Undiscounted Pro Forma Total Proved Cash Flows ($mm) 1
$800
$738
$700 ($98)
$600 $639
✓ Acquisition
funded through
✓ Average
$500 ($285) $17 million of
royalty burden ✓ Low ARO
requirements new equity
over reserves
$400 ✓ Strong capital equates to $114
life of ~13% $354
efficiencies million pro forma
$354 ($80) ✓ Favorable terms on cash flow to
$300
debt financing equity
$275 ($84) $191
$200
($12)
$191 $179 ($65) $114
$100 $126
-
Revenues Royalties Opex NOI before ARO ARO Capex DAFCF Interest on Term Repayment of Cash Flows to
Loan Term Loan Equity
>$114 million of 1P cash flows to equity after capex, ARO and debt service
1. Acquired reserves as evaluated by McDaniel as of April 1, 2022, based on a 3 Consultant Average Price Forecast (McDaniel, GLJ, Sproule) dated April 1, 2022.
9 TSX.V: ROKConsolidated Corporate Reserves
Reserves Volumes and Value1 Reserves Volumes and Value (B-Tax NPV-10%)1
Reserves Volumes Reserves Value (Before Tax)
Oil Gas NGL Total Liquids NPV-10% NPV-10%
mbbl mmcf mbbl mboe % $mm $/share2
Prob. Prob.
PDP
PDP 4,891 9,870 364 6,900 76% $114 $0.61 6.2mmboe $83mm PDP
6.9mmboe
(40%) (37%) $114mm
1P 6,873 11,755 457 9.290 87% $143 $0.77 (45%)
(50%)
Prob. 3,731 12,023 423 6,158 67% $83 $0.44
2P 10,604 23,7790 880 15,447 74% $225 $1.21
PUD+PDNP PUD+PDNP
2.3mmboe $29mm
NOI, Capex, and FCF Profile1,3 (15%) (13%)
$75 $450
ROK’s assets include significant, long-life reserves
NOI, Capex, FCF ($mm)
Cumulative FCF ($mm)
$50 $300
of over 15 mmboe (2P), equating to a RLI of over
$25 $150
12 years4
1. Reserves as evaluated by McDaniel as of April 1, 2022 based on a 3 Consultant Average
- -
Price Forecast (McDaniel, GLJ, Sproule) dated April 1, 2022
2. Based on pro forma basic shares outstanding of 187.86 million.
3. Does not include estimated abandonment retirement obligations (“ARO”) spending.
($25) ($150) 4. Reserves Life Index (“RLI”) is based on 2P reserves divided by March 2022E estimated
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 production of 3,073 boe/d.
Proved NOI Prob. NOI Capital 2P FCF Cum. FCF
10 TSX.V: ROKSoutheast SK Assets | Frobisher
FROBISHER $80 WTI & $4 AECO $90 WTI & $5 AECO $100 WTI & $6 AECO
DCE Cost $1.0MM $1.0MM $1.0MM
Future Locations
IP30 (Bopd) 175 175 175
EUR (Mbbl/Mboe) 75,000/85,000 75,000/85,000 75,000/85,000
• 20+ booked locations F&D Cost ($/boe) $11.76 $11.76 $11.76
• 6 Frobisher Hz wells planned for 2022 Netback ($/boe) $48.12 $59.71 $70.41
NPV10% $2.6MM $3.3MM $4.0MM
IRR% (BT) 500% >500% >500%
Payout 5 mo 4 mo 3 mo
Recycle Ratio 4.1 5.1 6.0
1. Booked locations and type curves as per McDaniel & Associates April 1, 2022 Corporate Reserve Evaluation. F/X 0.80.
11 TSX.V: ROKNW AB Assets | Kaybob Cardium A
CARDIUM A $80 WTI & $4 AECO $90 WTI & $5 AECO $100 WTI & $6 AECO
DCE Cost $3.0MM $3.0MM $3.0MM
IP30 (Bopd) 120 120 120
Future Locations
EUR (Mbbl/Mboe) 135,000/155,000 135,000/155,000 135,000/155,000
F&D Cost ($/boe) $19.35 $19.35 $19.35
• 20+ sections of high WI land prospective for
Netback ($/boe) $42.16 $53.61 $64.19
Cardium, Dunvegan, Bluesky, Montney (12 booked
locations) NPV10% $1.5M $2.5MM $3.4MM
IRR% (BT) 40% 60% 80%
• 2023 capital program expected to include Cardium
development Payout 2.0 yr 1.5 yr 1.1 yr
Recycle Ratio 2.2 2.8 3.3
1. Locations & type curves as per McDaniel & Associates April 1, 2022 Corporate Reserve Evaluation. F/X 0.80.
12 TSX.V: ROKCapitalization | Corporate Profile
Current Capitalization Illustrative Proforma Forecast1
50-day moving average share price $0.23 2022E production (74% liquids) 3,278 boe/d
Basic shares outstanding 187.9 mm 2022E net operating income (NOI) $63.3 mm
Options (average exercise price of $0.24 per share) 16.2 mm 2022E debt adjusted cash flow (DACF) $58.2 mm
Warrants (average exercise price of $0.25 per share) 141.3 mm 2022E debt adjusted free cash flow (DAFCF) $41.7 mm
Market capitalization (basic) $42.8 mm EV/boe/d $18.9k/boe/d
Current net debt $56.2 mm EV/NOI 1.0x
Enterprise value (basic) $99.0 mm EV/DACF 1.1x
Debt adjusted funds flow yield 67%
1. Estimates based on illustrative management forecast assuming $90 WTI on unhedged volumes and 75%
hedged production (average 2022 hedges of US$104.42/bbl). All EV metrics are based on projected net
debt at year-end 2022 of $21.1 mm.
13 TSX.V: ROK2022E Oil Price Sensitivity ROK is hedged at ~75% PDP at highly attractive oil prices
2022E Net Operating Income ($mm)1 2022E Debt Adjusted Cash Flow ($mm)1
$70.0 $70.0
Capex Minimum interest & principal FCF
$60.4
$60.0 $58.2
$56.0
$65.5 $53.8
$51.6
$65.0 $16.4
$50.0 $12.0 $14.2
$63.3 $9.8
$7.6
$61.1
$40.0
$60.0 $58.9
$30.0 $27.5 $27.5 $27.5 $27.5 $27.5
$56.7
$20.0
$55.0
$10.0
$16.5 $16.5 $16.5 $16.5 $16.5
$50.0 -
US$60/B WTI US$70/B WTI US$80/B WTI US$90/B WTI US$100/B WTI US$60/B WTI US$70/B WTI US$80/B WTI US$90/B WTI US$100/B WTI
WTI Sensitivity (Hedged) WTI Sensitivity (Hedged)
1. Illustrative management forecast assumes $90 WTI and 75% hedged production (average 2022 hedges of US$104.42/bbl). Illustrative Management Forecast
14 TSX.V: ROKValue 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 Debt Adjusted Free Cash Flow Yield (%)
6.0x 40% >40%
5.0x
30%
4.0x
3.0x 20%
2.0x
1.1x 10%
1.0x
0.0x WCP 0%
WCP
SOIL
CNQ
CPG
CNQ
CPG
VET
RBY
MEG
SOIL
VET
MEG
BTE
RBY
SU
SU
TVE
BTE
GXE
TVE
GXE
OBE
ERF
ERF
SGY
OBE
SGY
BNE
BNE
ATH
CJ
CVE
HWX
ATH
CJ
CVE
HWX
2022E Net Debt/DACF (x) 2022E Free Cash Flow Yield (%)
1.0x 40%
0.5x 0.4x 30%
23%
0.0x 20%
-0.5x 10%
-1.0x 0%
CNQ
MEG
SOIL
VET
CPG
WCP
RBY
BTE
SU
TVE
SGY
OBE
BNE
GXE
ERF
CJ
HWX
CVE
ATH
CPG
VET
CNQ
WCP
MEG
RBY
GXE
SOIL
SU
TVE
OBE
SGY
ERF
BTE
BNE
ATH
CJ
CVE
HWX
1. Peers are based on analyst consensus estimates for 2022 as reported by Capital IQ on March 15, 2022. EV is calculated as market capitalization plus year-end net debt.
2. ROK is shown at 50-day moving average of $0.22 per share as of March 15, 2022. Estimates based on illustrative management forecast assuming $90 WTI and 75% hedged production (average 2022 hedges
of US$104.42/bbl).
15 TSX.V: ROKCatalysts For Growth Why Invest in ROK Resources
Substantial Long-Term
High Quality Assets
Development Upside
ROK closed a transformational acquisition of the Federated Co-op Strong Free Cash Flow Exposure to Upward
Generation Commodity Market
assets on March 7, 2022, becoming a ~3,000 Boepd company.
Trusted Management Team
with Experience in Area
Release
Corporate Announce 2022 Kick-Off 2022 Kick-Off 2023
Reserves Report Budget SE SK Drill Kaybob Drill
April 19th Program Program
April 2022 April 2022 June 2022 January 2023
16 TSX.V: ROKROK Resources |
APPENDICES
17 TSX.V: ROKAppendix 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
Independent Director Resources. He has been President, CEO and Director of Pan Orient Energy Corp. since July 2005.
Over 30 years of experience in oil and gas marketing and commercial arrangements. Currently owner and
Kent McDougall Chief Commercial Officer of Torq Energy Logistics Ltd., previously Vice President, Energy Sales with
Independent Director Goldman Sachs, and Vice President- Fixed Income, Energy Trading & Marketing with Credit Suisse.
Peter Yates Mr. Yates has been a consultant and lawyer with EnerNext Counsel since August 2017. Previously an
Independent Director & associate in the securities/corporate finance group at Field LLP, and partner in the securities/corporate
Corporate Secretary finance group at Dentons Canada LLP.
14 years of public accounting and financial reporting experience, including four years with Deloitte &
David Hergenhein Touche LLP. Mr. Hergenhein is a Chartered Professional Accountant (CPA) and has provided financial
Independent Director
management services for several international junior oil and gas exploration companies.
Audit Committee Compensation and Corporate Governance Committee Reserves and Environmental, Health and Safety Committee
18 TSX.V: ROKAppendix II | 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 Opportunities
Disciplined capital allocation Well-positioned to capitalize on
strategies targeting high opportunities through continued
operating netbacks and low acquisitions of high-quality
decline production assets
Conservative Balance
Sheet Management Focus on Sustainability
Organic free funds flow to Corporate-wide focus on best-
support rapid de-leveraging; in-class ESG practices and
2022YE debt to trailing continuous monitoring and
improvement
NOI of 0.3x
19 TSX.V: ROKAppendix III | Insider Alignment
Material Investment
Management and board own ~15% of the current shares
outstanding
Shareholder Focus
Pre-existing note indentures held by insiders were equitized at
the same price and structure as the public equity financing
Continued Support
Insiders consistently demonstrate support for the business
including a ~$4 million President’s List in the latest financing
Strong Alignment
Insiders have continued to show support in all aspects of the
business, including participation in all financings, since its
founding in 2019
20 TSX.V: ROKAppendix IV | Weyburn CCUS EOR Project
The acquisition includes a 2.1% strategic interest in the world-
class Weyburn-Midale Enhanced Oil Recovery (EOR) project,
which is one of the largest Carbon Capture, Utilization and storage
~2 mm tonnes
(CCUS) project for EOR in the world.
CO2 sequestered
annually by the
project1
2 million tonnes of CO2 is
equivalent to >3,100 km2 of mature
trees growing for one year1
~$44 mm
Acquired interest
PDP NPV102
“Weyburn is a world-class asset capable to organically fund what we
have identified as a deep inventory of drilling opportunities in
Saskatchewan and Alberta, and we believe these assets can Offsets 86%
uniquely position ROK to achieve its goal of becoming a net- of ROK’s current
negative CO2 emitter” CO2 emissions
Cameron Taylor, Chairman and Chief Executive Officer
2. Reserves as evaluated by McDaniel as of October 31, 2021, based on the Sproule price forecast dated November 1, 2021.
1. Source: Whitecap Resources Inc.
21 TSX.V: ROKAppendix V | 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 Enhance and support Extracting valuable
Permanently and safely store
released into the atmosphere long-term crude oil resources sustainably
away CO2 underground
production responsibly
CO2
CO2 CO2 Oil
CO2
Purchase CO2 from Boundary Dam Inject and store CO2 safely and CO2 acts as solvent to flush oil Oil and natural gas liquids are
Power Station in Estevan, permanently deep underground from porous rock which would maximized, extracted and sold.
Saskatchewan and the Great Plains (~1,500m) into producing otherwise have been CO2 produced during EOR is
Synfuels plant in North Dakota. formation to increase oil production unrecoverable by conventional returned to reservoir
means
1. Source: Whitecap Resources Inc.
22 TSX.V: ROKAppendix VI | 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 ~212k gross acres
100% Crown lands
• Hub City Lithium owns ~212k gross acres of Crown lands Saskatchewan
• Test results show industry leading lithium concentrations at Mansur
Coleville
Saskatoon
Attractive Fundamentals
Kindersley Regina
Tyvan
Comparable companies have
Shareholder value via diversification and
demonstrated exceptional Weyburn Mansur
exposure to growing sector
economics in similar projects
Test Results (Duperow Formation)
Lithium prices are on the rise, as ROK’s lithium strategy further
demand rapidly grows for greener supports the company’s
mobility products and alternative uses commitment to ESG practices and Li Concentration1
11-2-9-13 Wellbore
a sustainable future (mg/litre)
Lower Wymark A & B 85.0 - 85.8
Upper Wymark E & F 89.0 - 96.3
1. Laboratory tes ting performed by two independent labs, Isobrine (Edmonton, AB) & AGAT (Calg ary, AB).
23 TSX.V: ROKAppendix VII | Debt Facility
Amortization Chart – Projected Cash Amortization Chart - No Cash Sweeps
Sweeps Average
Monthly Monthly
Principal Average Monthly Projected Cash Principal Principal
Months Amount Interest Sweep Outstanding Month(s) Amount
March 2022 – March 2023 2,000,000 494,000 3,237,000 35,706,000 March 2022 1,647,068
April 2023 – March 2024 1,569,000 244,000 2,189,000 14,824,000 April 2022 – March 2023 2,042,366
April 2024 – March 2025 948,000 77,000 2,420,000 1,475,000 April 2023 – March 2024 1,633,893
April 2025 – May 2025 737,000 7,000 0 0 April 2024 – March 2025 953,104
April 2025 – February 2026 816,946
➢ No prepayment penalties
➢ No warrants
If there is excess cash flow, ROK is required to prepay the
➢ Interest Rate: US Prime (currently 3.5%) + 8.0%
loan in an aggregate amount equal to 25% of ROK’s good
➢ Gross Overriding Royalty: 2.5% for 4 years reducing to 1.5% for perpetuity
faith estimate of the excess cash flow
on existing assets only
1. Figures are shown in $CAN with an estimated $0.79 CAD FX rate.
24 TSX.V: ROKDisclaimer | 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 assets which have recently been acquired by ROK Resources Inc. (“ROK” or the “Company”), cash flow, business strategy, priorities and plans, expected production, the evaluation of certain prospects in which ROK holds an
interest following the completion of such acquisition, estimated number of drilling locations, expected capital program (including its allocation), production growth, reserves growth, the receipt of and the timing of receipt of environmental licenses,
the ability of ROK to transport and sell its crude volume and other statements, expectations, beliefs, goals, objectives, assumptions and information about possible future events, conditions, results of operations or performance. Readers are
cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause
actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Business priorities disclosed herein are objectives only
and their achievement cannot be guaranteed. Indicative capital spending, drilling and production estimates for 2020 and beyond, which are provided herein, are subject to change Material risk factors include, but are not limited to: the inability to
obtain regulatory approval for any operational activities, the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of
equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on
industry partners and other factors, many of which are beyond the control of ROK. You can find an additional discussion of those assumptions, risks and uncertainties in ROK’s securities filings on SEDAR at www.sedar.com. Neither ROK nor any of
its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this
document or the actual occurrence of the forecasted developments. Readers should also note that even if the drilling program as proposed by ROK is successful, there are many factors that could result in production levels being less than
anticipated or targeted, including without limitation, greater than anticipated declines in existing production due to poor reservoir performance, mechanical failures or inability to access production facilities, among other factors. Statements relating
to “reserves” are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitable in the future. Estimated values of future
net revenue disclosed do not necessarily represent fair market value. There are numerous uncertainties inherent in estimating quantities of reserves, including many factors beyond the control of ROK. The reserve data included herein represents
estimates only. In general, estimates of economically recoverable oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties,
the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to
define the degree of speculation involved. The assumptions relating to ROK reserves on a stand-alone basis are as per management and based on assumptions contained in the report of GLJ Petroleum Consultants Ltd. for the Glen Ewen Property
acquired by ROK and dated June 23, 2020 and effective March 31, 2020 and the report of Sproule Associates Limited for the Florence Property acquired by ROK as of August 31, 2021. The Assumptions relating to the February 2022 acquired
assets are based on assumptions contained in the report of McDaniels Consultants Associates Ltd. effective October 31, 2021. Throughout this presentation, the calculation of barrels of oil equivalent (“boe”) is at a conversion rate of 6,000 cubic
feet (“cf”) of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cf: 1 barrel is based on an energy equivalence
conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. For the purposes of the following, “Misrepresentation” means an untrue statement of a material fact, or an omission to state a
material fact that is required to be stated, or that is necessary to make a statement not misleading in light of the circumstances in which it was made. If this presentation contains a Misrepresentation, a purchaser in Ontario who purchases
securities of ROK has, without regard to whether the purchaser relied on the Misrepresentation, a statutory right of action for rescission or, alternatively, for damages against ROK, provided that no action shall be commenced to enforce a right of
action more than (a) in the case of an action for rescission, 180 days after the date of the transaction that gave rise to the cause of action; or (b) in the case of any action, other than an action for rescission, the earlier of (i) 180 days after the
purchaser first had knowledge of the facts giving rise to the cause of action, or (ii) three years after the date of the transaction that gave rise to the cause of action. ROK will not be liable if it proves that the purchaser purchased the securities with
knowledge of the Misrepresentation. In an action for damages, ROK will not be liable for all or any portion of those damages that it proves do not represent the depreciation in value of the securities as a result of the Misrepresentation. In no case
will the amount recoverable exceed the price at which the securities were sold to the purchaser. Investors should refer to the applicable provisions of the securities legislation of their respective provinces or territories for the particulars of these
rights or consult with a legal advisor. The forward- looking information contained in this investor presentation speaks only as of the date of this investor presentation and is expressly qualified, in its entirety, by this cautionary statement and ROK
disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. This information is confidential
and is being presented to potential investors solely for information purposes. These materials do not and are not to be construed as an offering memorandum. An investment in securities of ROK involves a high degree of risk and potential investors
are advised to seek their own investment and legal advice. Forecast capital expenditures are based on ROK’s current budgets and development plans which are subject to change based on commodity prices, market conditions, drilling success,
potential timing delays and access to cash, cash flow, available credit and third party participation. ROK’s capital budget has been prepared based upon anticipated costs for equipment and services which are subject to fluctuation based upon
market conditions, availability and potential changes or delays in capital expenditures. Additionally, forecast capital expenditures do not include capital required to pursue future acquisitions. Anticipated production growth has been estimated based
on (i) the proposed drilling program with a success rate based upon historical drilling success and an evaluation of the particular wells to be drilled and has been risked, and (ii) current production and anticipated decline rates. Although the forward-
looking information contained herein is based upon assumptions which Management believes to be reasonable, ROK cannot assure investors that actual results will be consistent with this forward-looking information. Data obtained from the initial
testing results, including barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The well test results obtained and disclosed are not
necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the
Company in the future.
25 TSX.V: ROKROK Resources Inc. 1911 Broad Street Regina, SK S4P 1Y1 Phone: (306) 522-0011 Email: info@rokresources.ca Website: www.rokresources.ca
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