en.Wedoany.com Reported - ROK Resources Inc. ("ROK") (TSXV:ROK) (OTCQB:ROKRF) announced that it has entered into an asset purchase and sale agreement with an independent third party (the "Buyer") to sell certain non-core assets located in southeastern Saskatchewan for a cash consideration of C$8 million. The transaction is subject to customary closing adjustments and is expected to close on or before July 31, 2026, with an effective date of June 1, 2026. The transaction is not subject to any financing conditions.
As of June 2026, the assets are expected to produce approximately 280 barrels of oil equivalent per day (97% liquids) over the next twelve months, representing approximately 8% of ROK's previously forecasted average 2026 production. Under the agreement, ROK has divested 3.5 proved and probable drilling locations, while the company retains 97% of its drilling inventory for future development. This divestiture reduces ROK's total corporate asset retirement obligations (ARO) by 16% and lowers annual non-operated ARO expenditures by approximately 50%.
Bryden Wright, President and CEO of ROK, stated that the transaction is part of the company's ongoing strategy to optimize its portfolio and allocate capital to opportunities that are expected to generate returns for shareholders. The divested assets are non-operated with limited upside, helping ROK focus on its core operated assets.
In terms of transaction metrics, the C$8 million cash consideration represents a premium relative to the NPV10 of proved developed producing reserves. Based on expected production over the next twelve months, the transaction value is approximately C$28,571 per flowing barrel of oil equivalent. The transaction will also enhance ROK's cash position, providing flexibility for additional capital development, acquisitions, and/or returning capital to shareholders.
Peters & Co. Limited acted as exclusive financial advisor to ROK in connection with the transaction, and McDougall Gauley LLP served as legal counsel to the company.
ROK Resources Inc. is a Canadian energy company engaged in the exploration, development, and production of oil and natural gas assets in Saskatchewan and Alberta. The company is headquartered in Regina, Saskatchewan, with an office in Calgary, Alberta.
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