ROK Resources Inc. (TSXV:ROK; OTCQB:ROKRF) has outlined an expanded 2026 drilling program and approved a proposed return of capital of $0.03 per common share. The payment is expected in December 2026, assuming shareholder approval at the annual general and special meeting on December 3, 2026, as well as all necessary regulatory approvals.
#Expanded Southeast Saskatchewan drilling program
ROK said it had drilled 10 gross (8.9 net) wells in 2026, with 9 gross (7.9 net) currently producing. The company expects to drill two more wells in late 2026, taking the full-year program to 12 gross (10.9 net) wells.
Adverse weather in Southeast Saskatchewan delayed drilling and completion work and pushed back the start of production for some new wells. ROK currently anticipates bringing the two additional wells on production before year-end 2026, although the timing of the remaining capital program remains subject to the availability of rigs and oilfield services.
Over the most recent 30-day period, wells from the 2026 drilling program added average production of approximately 675 boepd, comprising 88% oil and natural gas liquids. ROK said early well results support its expectations for its core Southeast Saskatchewan inventory and have identified further drilling opportunities for 2027.
#Asset sales and updated outlook
ROK completed the sale of two non-core assets for aggregate cash consideration of $9.6 million, net of adjustments. The transactions also reduced corporate abandonment and reclamation obligations by $10.4 million, described by the company as a 16% reduction.
The company said the sales strengthened its cash position, consolidated its asset base and reduced future abandonment and reclamation costs. After factoring in the proposed return of capital and increased spending on core drilling, ROK projects an Adjusted Net Surplus of $6.4 million at year-end 2026.
ROK’s updated 2026 outlook includes 12 gross (10.9 net) wells, capital expenditures of $23.4 million, annual daily production averaging 3,025 boepd and Funds from Operations of $28.8 million. It also lists a $10.4 million year-on-year reduction in undiscounted abandonment and reclamation obligations.
The annualised production figure includes output from the expanded capital program, estimated by ROK to come on stream in late Q4 2026. The company’s outlook uses a CA$/US$ FX assumption of 0.70, 66% liquids, US$85 WTI and CA$1.75/GJ AECO, with the price assumptions effective October 1, 2026.
ROK said the outlook excludes potential proceeds of $3.0 million from the deposit connected with a terminated transaction. It also excludes proceeds from the company’s equity ownership in EMP Metals Corp., which ROK said was valued at approximately $7.0 million based on the trading price of EMPS.CN.
#Proposed return of capital
ROK’s Board of Directors approved a return of capital of $0.03 per common share. The proposed payment is conditional on approval at the December 3, 2026 annual general and special meeting and receipt of all necessary regulatory approvals.
The expected record date is December 4, 2026, subject to those approvals. At the meeting, shareholders will be asked to approve a return of capital of up to $0.05 per common share. ROK said the higher approval limit would provide flexibility if business conditions and cash flow permit additional payments, although it currently anticipates a return of capital of $0.03 per common share in December.
The company said it will provide further information on the payment date and the date used to determine eligible shareholders in a future press release. Additional details are also expected in the information circular issued ahead of the meeting.
#Commodity hedging
ROK has entered into a costless collar covering 35% of its base oil production for five months. The arrangement provides downside protection at CA$115.00 per barrel while retaining exposure to oil prices up to CA$140.10 per barrel, with no upfront premium.
The company said it will continue assessing its hedging position in relation to market conditions, capital requirements and its financial position.
#Company and reporting considerations
ROK Resources is primarily engaged in petroleum and natural gas exploration and development in Alberta and Saskatchewan, with offices in Regina, Saskatchewan, Canada and Calgary, Alberta, Canada.
ROK cautioned that its Funds from Operations, Adjusted Net Surplus and other non-IFRS measures do not have standardised meanings under IFRS Accounting Standards and may not be comparable with similarly named measures used by other companies.
The company also stated that its forward-looking statements are subject to risks and uncertainties, including economic and business conditions, regulatory developments, possible delays or failure to receive required approvals, and other risks set out in its public filings. The timing and outcome of the 2026 plans may therefore differ from the company’s current expectations.
#Key Takeaways
- ROK Resources expects to drill two additional wells in late 2026, taking its program to 12 gross (10.9 net) wells.
- The sale of two non-core assets generated $9.6 million in aggregate cash consideration and reduced corporate abandonment and reclamation obligations by $10.4 million, or 16%.
- The updated outlook includes capital expenditures of $23.4 million, average daily production of 3,025 boepd, Funds from Operations of $28.8 million and an Adjusted Net Surplus of $6.4 million.
- The Board approved a proposed return of capital of $0.03 per common share, subject to shareholder approval on December 3, 2026 and regulatory approvals.
- The remaining drilling schedule is subject to rig and oilfield services availability, while the company’s outlook excludes potential proceeds from a terminated transaction and its EMP Metals equity ownership.
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