ROK Resources Files Financial Results and Management’s Discussion and Analysis for the First Quarter of 2022
In the first quarter of 2022, the company achieved a production volume of 84,647 boe, resulting in crude and natural gas sales of
ROK is principally engaged in the exploration of oil and natural gas development business in
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The non-IFRS measures referenced above do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, may not be comparable to similar measures used by other companies. Management uses this non-IFRS measure to provide its shareholders and investors with a measure of the Company’s financial performance and is not intended to represent operating profit or consider it as an alternative to cash flow generated by operating activities, net profit or other measures of financial performance calculated in accordance with IFRS. The reader is cautioned that these amounts may not be directly comparable to measures of other companies where similar terminology is used. “Operating profit” is calculated by deducting operating expenses from total revenues. Total revenue includes oil and gas sales, net of royalties. The Company refers to operating profit expressed per unit of production as “net operating profit”. “Operating Profit Margin” is calculated by the Company as operating profit as a percentage of oil and natural gas sales.
Production volumes and reserves are generally expressed on a barrel of oil equivalent (“boe”) basis, with natural gas volumes converted at a ratio of 6,000 cubic feet (“Mcf”) to 1 barrel oil (“bbl”). Although the intention is to add the units of measure for petroleum and natural gas into a single basis for better analysis of results and comparisons with other industry players, boe can be misleading, especially s they are used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. In recent years, the value ratio based on the price of crude oil to natural gas has been significantly higher than the energy equivalence of 6:1 and the use of a conversion of natural gas volumes on a base of 6:1 can be misleading as an indication of value.
Caution Regarding Forward-Looking Information
This press release contains certain “forward-looking statements” under applicable Canadian securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s objectives, goals or future plans with respect to the pursuit of objectives and expectations regarding the expected results of those -this. Forward-looking statements are necessarily based on various estimates and assumptions which, although believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially. of those expressed or implied by such forward-looking statements. research statements. These factors include, but are not limited to, general business, economic and social uncertainties; litigation, legislative, environmental and other legal, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; these additional risks set forth in ROK’s public filings on SEDAR at www.sedar.com and other matters discussed in this press release. Although the Company believes that the assumptions and factors used in the preparation of forward-looking statements are reasonable, undue reliance should not be placed on such statements, which speak only as of the date of this press release, and no no assurance can be given that such events will occur within the time frames disclosed or at all.