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Rock Energy offers a unique opportunity to invest in the energy sector and have exposure to a cash flow generating crude oil platform and an emerging natural gas resource play. Rock has a well established heavy oil play in the Plains core area focusing on production and cash flow generation. In addition, the Company is developing a Deep Basin natural gas resource play at Elmworth, in west-central Alberta. Subsequent to the completion of a $31 million equity financing in May 2011, Rock has expanded its drilling program for 2011 to $77 million that will see activity in both core areas as the Company builds its crude oil production base and proves up its emerging natural gas resource play. |
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2010 |
2011
(Forecast) |
| Production average (boepd) |
3,615 |
3,800-4,200 |
| % crude oil |
60 |
73 |
| Funds from operations ($ MM) |
25.9 |
30 |
| Funds from operations/share |
0.84 |
0.82 |
| Capital spending ($ MM) |
42.3 |
77 |
| Year-end debt ($ MM) |
32.4 |
51 |
| WTI (US$/bbl) |
79.51 |
95.00 |
| Heavy oil differential (WTI-WCS US$) |
14.30 |
16.00 |
| AECO (CDN$/mcf) |
4.01 |
4.00 |
| F/X |
0.97 |
1.03 |
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Emerging Elmworth Liquids Rich Natural Gas Resource Play
- Rock has developed a significant land position at Elmworth with 61.5 net sections of Montney rights
- To date, Rock’s vertical test well program and the horizontal drilling activity have exceeded expectations and have confirmed the existence of Montney natural gas on the Company's North Elmworth and South Elmworth lands
- Industry players are drilling horizontal wells adjacent to Rock's lands
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Heavy Oil
- Current prices are generating field netbacks that generate 100% IRR and strong recycle ratios
- Rock is continuing to assess ways of improving recovery factors that could significantly increase reserves
- Rock has 190 heavy oil drilling locations and 40 - 50 recompletion candidates
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- Multi-zone stacked natural gas in the Deep Basin
- Focus in 2011 on proving up Montney natural gas reserves with an expanded capital program
- Following successful drilling activity in 2010 and to date in 2011, Rock is planning to drill an additional two 100% horizontal wells and three 100% vertical test wells in the next 12 months
- Focus in 2012 on bringing Montney natural gas production on stream
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- Heavy oil from Mannville group
- Primary zones – Colony, McLaren, Waseca, Sparky, GP that are 500 - 1,000 meters deep
- Cold flow production with a current recovery factor of 6 - 8%
- 2011 drilling plans include 40 heavy oil wells of which 11 wells have been drilled to date
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