CORPORATE PRESENTATION - ROK Resources
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CORPORATE PRESENTATION
April 2021 | TSX.V: ROK
ABOUT US
ROK Resources Inc., headquartered in Regina,
Saskatchewan, is an experienced management team
focusing on resource-based asset development and
are well positioned for the next commodity cycle.
ROK | 2
ABOUT US
Our Mission
To operate and conduct business in an honest, safe and environmentally & socially
responsible manner.
Our Values
Safety, Accountability, Sustainability, Innovation
Our Vision
To create a diversified and sustainable resource-based asset portfolio
and enhance shareholder return through responsible energy
exploration and extraction.
ROK | 3
MANAGEMENT TEAM
Our management team is composed of individuals who have significant experience in the
development of conventional oil & gas plays, across multiple North American basins.
Mr. Taylor is the Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil
Cam Taylor Corp., Villanova Oil Corp. & Villanova Resources Inc. He is a geoscientist with over 30 years of experience in oil
Chairman & CEO & gas exploration and development. Since graduating with a BSc. in Geophysics in 1988, he has worked the
Williston Basin, Foothills, deep Devonian and heavy oil exploration within Canada.
Mr. Wright is the Co-founder of ROK Resources Inc., and former Vice President Engineering of Villanova 4 Oil
Bryden Wright | P. Eng Corp. He has over 12 years of experience in Williston Basin oil exploration and production, specifically SE
Vice President- Engineering Saskatchewan conventional and unconventional oil plays. He holds an BSc in Petroleum Systems Engineering
and is a registered Professional Engineer with APEGS.
Mr. Lukomski is the Co-founder of ROK Resources Inc., and former Vice President Land with Villanova 4 Oil
Jared lukomski Corp. He has over 12 years of experience in leading land related initiatives. Prior to joining the Villanova
Sr. VP Land & Business Development Group, Jared was employed by Conexus Credit Union from 2000 to 2007 where he managed a book of
business in his role as a Commercial Account Manager
Mr. Chapman is the former CFO of Petrodorado Energy Ltd. He is a Chartered Professional Accountant of
Lynn Chapman | CA Canada (Alberta) with 9 years of certification. Mr. Chapman has over 12 years experience in international
CFO business with disciplines in finance, accounting and financial reporting under IFRS
Mr. Ryan is the former Sr. Geologist of Villanova 4 Oil Corp. He has over 30 years of geologic experience in the
Murray Ryan | P. Geo Williston Basin, Arkoma Basin and the Western Canadian Sedimentary Basin. Prior to Villanova, Mr. Ryan
Senior Geologist worked with Calgas Energy, APF Energy, Tethys Energy, Northstar Energy, Strike / Battle Creek Energy, Elan
Energy and LASMO Energy.
ROK | 4
BOARD OF DIRECTORS
Mr. McDougall has over 30 years of experience in oil and gas marketing and commercial arrangements within the oil
and gas business. He brings a deep knowledge of energy marketing, logistics and financing to the Company. He is
Kent McDougall currently an owner and Chief Commercial Officer of Torq Energy Logistics Ltd., a multi-product logistics and
Independent Director midstream company which owns midstream infrastructure and provides marketing and transportation to customers
across Western Canada. Mr. McDougall was previously Vice President- Energy Sales with Goldman Sachs, and prior
to that Vice President- Fixed Income, Energy Trading & Marketing with Credit Suisse.
Mr. Chisholm is a geoscientist with over 30 years of International exploration and development experience with Pan
Jeff Chisholm Orient Energy, Orion Securities, Bow Valley Energy, Canadian Occidental Petroleum (Nexen) PanCanadian Petroleum
(Encana) and Niko Resources. Mr. Chisholm has been President, CEO and Director of Pan Orient Energy Corp. since
Independent Director
July 2005. In addition to his experience managing a publicly traded oil and gas company, Mr. Chisholm brings extensive
experience in international business development and new venture evaluation to the Company.
David Hergenhein Mr. Hergenhein, an independent director, has 14 years of public accounting and financial
reporting experience, including four years with Deloitte & Touche LLP. Mr. Hergenhein is
Independent Director
a Chartered Professional Accountant (CPA) and has provided financial management services for
several international junior oil and gas exploration companies.
Mr. Yates has been a consultant and lawyer with EnerNext Counsel since August 2017. Prior thereto, Mr. Yates was
Peter Yates an associate in the securities/corporate finance group at Field LLP from November 2015 until August 2017. Mr. Yates
Independent Director was previously a partner in the securities/corporate finance group at Dentons Canada LLP (formerly Fraser
Milner Casgrain LLP) from May 2012 until October 2015.
Mr. Taylor is a Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil Corp., Villanova
Cam Taylor Oil Corp. & Villanova Resources Inc. He is a geoscientist with over 30 years of experience in oil & gas
Chairman & CEO exploration and development. Since graduating with a BSc. in Geophysics in 1988, he has worked the Williston
Basin, Foothills, deep Devonian and heavy oil exploration within Canada
ROK | 5MANAGEMENT TEAM | Historical Returns
$457.7 MILLION COMPANY Timeline Gross
Gross IRR
Inception to Sale Multiple
Total proceeds of 4 companies
built and sold on $154MM Villanova Energy
Feb ’07 - Jan ‘09 4.4X 108.9%
in capital raised Corp.
Villanova Jan ‘09 - May
‘10
2.7X 121.9%
Resources Inc.
6,749 Boepd Villanova Oil Corp. Oct ‘10 - Apr ‘13 1.7X 23.3%
Cumulative growth of each Villanova 4 Oil Corp. Jul ‘12 - Jul ‘18 0.5X -9.9%
company
ROK
ROK||6 6MANAGEMENT TEAM | Historical Returns
1. Villanova Energy | Jan 2009 1 2
• 2,389 Boepd
• $139.2MM
3
2. Villanova Resources | May
2010
• 1,048 Boepd
• $130.1MM 4
3. Villanova Oil | April 2013
• 1,597 Boepd
• $124.4MM
4. Villanova 4 | July 2018
• 1,715 Boped
• $64MM
VILLANOVA CORP TRANSACTION
(MM$)
WTI (US $/BBL)
ROK | 7CORPORATE SNAPSHOT
ASSET OPTIONS
Production 150 Boepd Options (#) Expiry Date Price
2P Reserves* | Boe 1,409,000 75,000 Nov 14, 2021 $0.10
2P Reserves* | NPV10% $12,512,000 840,000 July 18, 2023 $0.10
1,600,000 Dec 3, 2024 $0.15
Land ~6,500 net acres
* Reserves as of Dec 31, 2020
FINANCIAL WARRANTS
Basic Shares 59,221,576 Warrants (#) Expiry Date Price
Fully Diluted 79,495,551 6,516,667 June 19, 2022 $0.15
Insider Ownership | basic ~44% 7,692,308 July 31, 2022 $0.15
Working Capital ~$1,300,000 3,550,000 Nov 9, 2022 $0.30
Tax Pools $16,000,000+
Share Price | 21 day VWAP $0.20/share
Market Cap | $0.20/share $11,844,315
ROK | 8COMPANY MILESTONES
DEC 2019 JUNE 2020 NOV 2020 MARCH 2021
ROK (Private Co.) Definitive Agreement
Glen Ewen $1,392,000 Private
share exchange with Executed to Acquire
Acquisition Placement
Petrodorado Assets+ Farmin
Energy Ltd.
$500,000 Private Year End
Began trading on
Placement & Reserve Report
TSX Venture
Appointment of $12,512,000
as ROK.V
of Directors NPV10%
JAN 2020 JULY 2020 DEC 2020
ROK | 9EXISTING OPERATIONS | Summary
PRODUCING FORMATIONS
Midale & Frobisher
LAND
7,300 gross (6,500 net) acres
42% Crown (58% Freehold)
FACILITIES
100% Operated Battery
30% Non-Operated Battery
Gas Infrastructure
PRODUCTION
160 Boepd (~70% Oil + NGLs)
UPSIDE
ROK LAND
20+ Drilling locations identified
RESERVES1
2P: 1,409,000 BOE, $12.5MM NPV10%
1P: 742,000 BOE, $6.8MM NPV10%
PDP: 393,000 BOE, $3.3MM NPV10%
1. Dec 31, 2020 GLJ Report
ROK | 10PENDING FLORENCE ACQUISITION | Summary
FORMATIONS
Proven Producing Frobisher Upside
Midale Development
LAND
1,538 gross (1,538 net) acres
23% Crown (77% Freehold)
160 gross (80 net) acres of mineral fee title
WELLS
4 Producing wells
1 suspended well
1 injection well
FACILITY
Central battery (100% Operated)
Capacity of 3,500 Bpd (throughput of 1350 Bpd)
Gas infrastructure
ROK LAND
PRODUCTION ACQUISITION LAND
~110 Boepd (90% liquids)
ROK | 11PENDING FLORENCE ACQUISITION | Summary
CASHFLOW
$120,000/mo (February 2021 Estimate)
UPSIDE
10 Drilling locations identified (7 Booked)
LLR
ROK corporate LLR increase from 1.26 to 2.20
RESERVES*
2P: 711,900 BOE, $12.0MM NPV10%
1P: 302,300 BOE, $5.1MM NPV10%
PDP: 84,700 BOE, $1.6MM NPV10%
* Sproule March 31, 2021
ROK LAND
ACQUISITION LAND
ROK | 12PENDING FLORENCE ACQUISITION | Upside
ACQUISITION LANDS
• 100% Operated Interest FUTURE HZ WELLS
PRODUCING WELLS
• Four producing Frobisher wells
CD OILRATE
•Central facility with 3rd party gas tie-in
• 10+ HZ locations identified
SINGLE WELL ECONOMICS WELL
CURRENT
PERFORMANCE PROD | Months EUR | Bbls
PROD | Bopd
Capital Cost | DCE $925,000
EUR | Bbl, Boe 75,000Bbl, 90,000Boe 101/09-03-002-01 31 109,152 30
WTI Price USD/Bbl $60 WTI $70 WTI
101/12-02-002-01 28 68,673 20
NPV10% $1.6MM $2.0MM
Payout 0.5 Yrs 0.4 Yrs 102/09-03-002-01 19 33,035 20
IRR 450% 500%
103/12-02-002-01 16 24,795 20
ROK | 13PROFORMA | Pending Acquisitions + Existing Assets
ROK March 1, 2021 ROK + Acquisitions
# Basis Shares 59,221,576 74,471,576
Production | Boepd 150 260
Net Operating Income | $/Yr $420,000 $1,800,000
Cashflow | $/Yr -$600,000 $360,000
1P Reserves | mboe 784 1,135
1P NPV10% | m$ $8,672 $14,307
2P Reserves | mboe 1,398 2,110
2P NPV10% | m$ $15,587 $28,184
$/share | 1P $0.14 $0.19
$/share | 2P $0.26 $0.38
Capex | M$ $0 $4,525
Cumulative Debt | M$ $0 $4,000
Note: Proforma production & cashflow figures based on estimated production rates as of effective date (April 1, 2021).
ASSUMPTIONS
1. $2.2MM Equity raise at $0.20/share
2. $4.0MM in debt financing for acquisition
3. Reserves + Cashflow run @ $60 Flat WTI, $2.75 AECO & 0.78 f/x
ROK | 14PENDING FARMIN | Summary
SINGLE WELL ECONOMICS
• Play has been de-risked with 3D Seismic
& exploration drilling Capital Cost | DCE $925,000
EUR | Bbl, Boe 60,000Bbl
•Analogous Frobisher Stoughton pools offsetting
WTI Price USD/Bbl $60 WTI $70 WTI
•Significant running room with existing land base NPV10% $1.0MM $1.5MM
+ available offsetting acreage Payout 0.7 Yrs 0.5 Yrs
IRR 195% 400%
ASSETS
Undeveloped Land: 2,910 gross (2,910 net) acres CD OIL RATE
48% Crown (52% Freehold)
KEY TERMS
1 ROK pays 70% of drill, complete, equip of two (2)
wells to earn 35% of the lands. Earning wells to be drilled
post breakup. Wells are expected to cost $1.3MM (DCE)
net to ROK;
2 ROK has the option, on or before December 31st, 2021,
to purchase up to a 50% interest in the entire assetfor
$2,000,000; and
3 AMI area created 50/50 with Operator
ROK | 15INVESTMENT THESIS
1 2 3 4
Continue to target Pace capital Focus on capital Actively continue to
scalable opportunities spending to coincide efficient value growth reduce environmental
with high netbacks with increased footprint and Asset
and significant upside commodity pricing Retirement Obligation
ROK | 16LEGAL DISCLAIMER
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 reserves are 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. 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.
ROK | 17THANK YOU. ROK Resources Inc. 200 – 1965 Broad Street Regina, SK S4P 1Y1 Phone 306-522-0011 Email info@rokresources.ca
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