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Oil & Gas Co. Completes Five Wells
Research Report

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With three of these new wells in Saskatchewan now online, the Canadian company is on track to meet its full-year 2023 production guidance, noted a Research Capital Corp. report.

Rok Resources Inc. (ROK:TSX.V) recently finished drilling a quintet of wells in Saskatchewan's Mississippian Madison formation, reported Research Capital Corp. analyst Bill Newman in a September 20 research note.

"With the recent surge in oil prices, a highly successful drilling program, and increasing production, ROK is gaining significant momentum as it approaches 2024," Newman wrote.

Attractive Return Potential

Given the news, Research Capital reiterated its CA$0.75 per share target price on the Saskatchewan-based energy company, now trading at about CA$0.39 per share, noted Newman.

From the current price, the return to target reflects a 92% gain for investors.

ROK remains a Buy.

Status of New Wells

Of the five wells ROK just completed, three are producing and poised to exceed the IP30-type curve by about 30%, Newman pointed out. The other two wells should come online in the next few weeks.

Contribution from the three new wells has increased production to about 3,900 barrels of oil equivalent per day (3,900 boe/d). This is 18% increase over the average production in Q3/23 of 3,297 boe/d.

"Based upon these results we believe ROK is on track to exceed its exit 2023 production target of 4,500 boe/d," Newman wrote.

Update on Lithium Asset

The analyst briefly discussed ROK's lithium holding, a 25% interest in Hub City Lithium.

"We view the lithium play as a free option for investors," wrote Newman.

So far, two wells were drilled and tested at both Mansur and Viewfield, Hub City's lithium brine projects in Saskatchewan's Duperow formation.

Results were "impressive," Newman highlighted, "including a zone that tested lithium concentrations of up to 259 milligrams per liter, which is the highest recorded brine test in Canada."

Work on a preliminary economic assessment (PEA) of Viewfield is underway.

Upcoming Catalysts

As for near-term events, ROK plans to kick off phase two of its current drill program in early October. It will consist of six wells, five in Saskatchewan, one in Alberta.

Also, ROK's Q3/23 financial and operational results are slated for release on Nov. 21.

Lastly, the PEA on the Viewfield lithium property is expected in Q4/23.

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Important Disclosures:

  1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures For Resource Capital Corp., Rok Resources Inc., September 20, 2023

Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at or may be requested by contacting the analyst

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