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ROK Resources Inc. — Management Reports 2026
Apr 24, 2026
45743_rns_2026-04-24_19ba1279-482f-4c7d-bd24-263b9c86989e.pdf
Management Reports
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ROK
RESOURCES
MANAGEMENT'S DISCUSSION & ANALYSIS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2025 AND 2024
Management's Discussion & Analysis
ROK
RESOURCES
FINANCIAL AND OPERATING HIGHLIGHTS
| Expressed in $000s, except where stated | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Financial Highlights | ||||
| Oil and natural gas sales | 14,417 | 21,168 | 68,175 | 85,190 |
| Realized gain on commodity contracts | 197 | 862 | 7,230 | 2,676 |
| Processing and other income | 1,378 | 913 | 2,991 | 3,416 |
| Net loss | (10,329) | (5,146) | (10,795) | (636) |
| $ per share, basic | (0.05) | (0.02) | (0.05) | (0.00) |
| $ per share, diluted | (0.05) | (0.02) | (0.05) | (0.00) |
| Funds Flow (1) | 1,734 | 5,601 | 20,394 | 22,393 |
| Expenditures on property, plant & equipment | 72 | 7,334 | 5,012 | 17,387 |
| Total assets | 125,791 | 156,644 | 125,791 | 156,644 |
| Principal balance of long-term debt | - | 7,349 | - | 7,349 |
| Net Surplus (Debt) (1) | 4,302 | (12,130) | 4,302 | (12,130) |
| Shareholders' equity | 90,404 | 101,407 | 90,404 | 101,407 |
| Common shares outstanding | 217,763,815 | 218,769,315 | 217,763,815 | 218,769,315 |
| Operating Highlights (2) | ||||
| Average daily production | ||||
| Crude oil (bbl/d) | 1,828 | 2,215 | 1,987 | 2,211 |
| NGLs (boe/d) | 333 | 430 | 366 | 411 |
| Natural gas (mcf/d) | 6,761 | 8,038 | 7,424 | 8,220 |
| Total (boe/d) | 3,288 | 3,985 | 3,591 | 3,992 |
| Average realized prices, before hedging | ||||
| Crude oil ($/bbl) | 70.95 | 90.85 | 80.02 | 91.04 |
| NGLs ($/boe) | 36.96 | 42.53 | 40.60 | 45.06 |
| Natural gas ($/mcf) | 2.18 | 1.31 | 1.74 | 1.57 |
| Combined average ($/boe) | 47.67 | 57.74 | 52.02 | 58.30 |
| Operating Netback (1) | ||||
| Oil and natural gas sales ($/boe) | 47.67 | 57.74 | 52.02 | 58.30 |
| Royalties ($/boe) | (7.50) | (9.74) | (8.60) | (10.25) |
| Operating expenses ($/boe) | (29.55) | (28.17) | (29.34) | (30.32) |
| Operating Netback ($/boe) | 10.62 | 19.83 | 14.08 | 17.73 |
| Funds from Operations ($/boe) (1) | 12.66 | 24.28 | 20.89 | 21.52 |
| Operating Income Profit Margin (1) | 22.3% | 34.3% | 27.1% | 30.4% |
| Funds from Operations Profit Margin (1) | 26.6% | 42.1% | 40.2% | 36.9% |
(1) "Funds Flow", "Operating Netback", "Funds from Operations", "Operating Income Profit Margin", "Funds from Operations Profit Margin", "Net Surplus (Debt)" do not have standardized meanings under IFRS. Refer to "Non-IFRS Measures" section of this MD&A.
(2) Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Refer to the section entitled "Conversion Measures" at the end of this MD&A.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
INTRODUCTION
The following is management's discussion and analysis ("MD&A") of the operating and financial results of ROK Resources Inc. ("ROK" or the "Company"), for the three months and year ended December 31, 2025, as compared to the three months and year ended December 31, 2024, as well as information and expectations concerning the Company's outlook based on currently available information.
This MD&A should be read in conjunction with ROK's audited annual consolidated financial statements for the year ended December 31, 2025 and December 31, 2024, prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standard Board ("IASB"), together with the accompanying notes (the "Financial Statements").
This MD&A contains forward-looking information about our current expectations, estimates, projections and assumptions. Additional information on the Company, its Financial Statements, this MD&A and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).
All dollar values are expressed in Canadian dollars, unless otherwise indicated, and are prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standard Board ("IASB").
This MD&A is prepared as of April 23, 2026.
NON-IFRS MEASURES
The non-IFRS measures and ratios referred to below do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures used by other companies. Management uses these non-IFRS measures to provide its shareholders and investors with a measurement of the Company's financial performance and are not intended to be viewed as an alternative to cash provided by operating activities, net income 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 for other companies where similar terminology is used.
Funds Flow
"Funds Flow" includes all cash provided by operating activities and is calculated before the change in non-cash working capital. A reconciliation of cash provided by operating activities to Funds Flow for the three months and years ended December 31, 2025 and 2024, are as follows:
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Cash (used in) provided by operating activities | 236 | 7,911 | 18,603 | 22,201 |
| Change in non-cash working capital | 1,498 | (2,310) | 1,791 | 192 |
| Funds Flow | 1,734 | 5,601 | 20,394 | 22,393 |
Operating Income, Operating Netback, Operating Income Profit Margin, Funds from Operations, and Funds from Operations Profit Margin
"Operating Income" is calculated by deducting royalties and operating expenses from oil and natural gas sales. The Company refers to Operating Income expressed per unit of production as an "Operating Netback". "Operating Income Profit Margin" is calculated by the Company as Operating Income as a percentage of oil and natural gas sales. "Funds from Operations" and "Funds from Operations Profit Margin" adjust Operating Income and Operating Income Profit Margin for processing and other income and realized gains/losses from the economic hedges in place during the period. A reconciliation of the measures for the three months and years ended December 31, 2025 and 2024, are as follows:
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Oil and natural gas sales | 14,417 | 21,168 | 68,175 | 85,190 |
| Royalties | (2,267) | (3,570) | (11,275) | (14,972) |
| Operating expenses | (8,937) | (10,326) | (38,458) | (44,306) |
| Operating Income | 3,213 | 7,272 | 18,442 | 25,912 |
| Processing and other income (1)(2) | 420 | 768 | 1,711 | 2,856 |
| Realized gain on commodity contracts | 197 | 862 | 7,230 | 2,676 |
| Funds from Operations | 3,830 | 8,902 | 27,383 | 31,444 |
| Sales volume (boe) | 302,471 | 366,598 | 1,310,587 | 1,461,250 |
| Per boe | ||||
| Oil and natural gas sales | 47.67 | 57.74 | 52.02 | 58.30 |
| Royalties | (7.50) | (9.74) | (8.60) | (10.25) |
| Operating expenses | (29.55) | (28.17) | (29.34) | (30.32) |
| Operating Netback | 10.62 | 19.83 | 14.08 | 17.73 |
| Funds from Operations | 12.66 | 24.28 | 20.89 | 21.52 |
| Operating Income Profit Margin | 22.3% | 34.3% | 27.1% | 30.4% |
| Funds from Operations Profit Margin | 26.6% | 42.1% | 40.2% | 36.9% |
(1) Non-cash revenue derived from HCL Management Agreement (see below) that is recognized over time from deferred revenue is excluded from processing and other income for the calculation of Funds from Operations.
(2) Insurance payout of $1.0 million received during the year ended December 31, 2025, for lost facilities due to fire is excluded from processing and other income for the calculation of Funds from Operations.
Net Surplus (Debt)
Throughout this MD&A, references to "Net Surplus (Debt)" means the principal amount of its outstanding long-term obligations, net of Adjusted Working Capital. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding current portion of debt, lease liabilities, decommissioning obligations, and RSU liabilities as presented on the statement of financial position. As at December 31, 2025, the Adjusted Working Capital includes cash and cash equivalents, accounts receivable, prepaid expenses and deposits, the current portion of risk management contracts, and accounts payable and accrued liabilities. ROK uses "Net Surplus (Debt)" as a measure of the Company's financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS.
| ($000s) | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | 5,744 | - |
| Accounts receivable | 6,675 | 11,528 |
| Prepaids and deposits | 220 | 284 |
| Current portion of risk management contracts | 141 | (771) |
| Accounts payable and accrued liabilities | (8,154) | (15,346) |
| Adjusted working capital (2) | 4,626 | (4,305) |
| Credit Facility (1) | - | (7,349) |
| Lease obligations (1) | (324) | (475) |
| Less: adjusted working capital (2) | 4,626 | (4,305) |
| Net surplus (debt) | 4,302 | (12,129) |
(1) Represents undiscounted face value of debt balances and lease obligations outstanding as of each respective date presented.
(2) Calculation of adjusted working capital excludes current portion of debt and lease liabilities as presented on the statement of financial position. The mark-to-market fair value of the current portion of risk management contracts is included within adjusted working capital.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
BUSINESS PROFILE AND STRATEGY
ROK is a public company that is engaged in oil and gas exploration and development activities in Western Canada. The Company has head offices located in Regina, Saskatchewan, Canada, and Calgary, Alberta, Canada, and the Company's shares are traded on the TSX Venture Exchange ("TSXV") under the trading symbol "ROK". ROK continues to target being a prospect-oriented oil and gas company focused on the components to capitalize on the current commodity cycle. The Company's assets are concentrated in Southeast Saskatchewan and Central Alberta.
The Board of Directors and management continue to develop existing properties to maximize production from existing reserves and have also continued to evaluate potential transactions available to the Company with the mission to identify opportunities that may provide the best future for the Company and the shareholders with the goal to maximize shareholder value.
TERMINATION OF ARRANGEMENT AGREEMENT
On September 23, 2025, the Company entered into an arrangement agreement (the "Arrangement Agreement") between 17312539 Canada Inc., a private Canadian company formed for the sole purpose of completing the Arrangement (defined below) (the "Purchaser"), Blue Alaska Oil Trading LLC ("Blue Alaska") as the sole shareholder of Purchaser. Pursuant to the Arrangement Agreement, the Purchaser was to acquire all of the issued outstanding Class B common shares ("Class B Shares") of the Company for total consideration of $52 million in cash, subject to adjustments as provided for in the Arrangement Agreement (the "Arrangement"). As part of the Arrangement, a $3 million deposit was placed into trust by Blue Alaska and the Purchaser until releasable under the terms of the Arrangement Agreement. A reciprocal break fee of $3 million was also part of the Arrangement and was to be provided to the respective party if the Arrangement is terminated under certain conditions in the Arrangement Agreement.
On March 2, 2026, Blue Alaska and the Purchaser served ROK with a notice (the "Notice") to immediately terminate the Arrangement Agreement. In the Notice, Blue Alaska and the Purchaser assert a unilateral ability to terminate the Arrangement Agreement. The Notice provided by Blue Alaska and the Purchaser and the unilateral termination of the Arrangement Agreement amount to a repudiation of the Arrangement Agreement. ROK, as a result of such repudiation by Blue Alaska and the Purchaser, has provided Blue Alaska and the Purchaser with notice of termination of the Arrangement Agreement.
ROK is currently seeking payment of the reciprocal break fee of $3 million given Blue Alaska inability to fulfill the terms and conditions of the Arrangement Agreement. In turn, Blue Alaska has claimed that the reciprocal break fee is not owed and has presented an unwillingness to honor ROK's claim. Legal steps are being taken by both parties to enforce their respective positions.
ACQUISITIONS AND DISPOSITIONS
During the year ended December 31, 2025, the Company closed minor dispositions of oil and gas assets in Southeast Saskatchewan for total consideration of $0.2 million, after closing adjustments.
In October 2024, ROK completed the sale of a gross overriding royalty interest in the Benson region of Saskatchewan. These assets were initially acquired as part of the FCL acquisition in 2022. Total consideration that ROK received for this sale was $4.0 million. The disposed assets had a carrying value of $1.3 million.
During the year ended December 31, 2024, the Company closed one minor acquisition of oil and gas assets in Southeast Saskatchewan for total consideration of $0.2 million, after closing adjustments.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
RESOURCES
LIQUIDITY AND CAPITAL RESOURCES
The Company's approach to managing liquidity is to ensure a balance between expenditure requirements, cash provided by operations, and working capital. As at December 31, 2025, the Company had a working capital surplus of $2.4 million ($4.4 million working capital deficiency at December 31, 2024). Changes in working capital have been primarily due to the funding of capital expenditures, the servicing of existing debt obligations (see below), the liquidation of commodity contracts for realized gains, and cash flows on account of oil and natural gas sales, net of royalties and operating expenses, and general and administrative costs.
In recent years, global economic conditions, financial markets, geopolitical conflicts, and commodity prices in particular, have experienced significant volatility and uncertainty. While the current outlook for commodity prices is relatively stable, long-term price support from future demand remains uncertain. The scale and duration of these developments remain uncertain but could impact the Company's operations, future net earnings and cash flows given that the aforementioned global events are an evolving situation that will continue to have widespread implications for the Company's business environment and financial condition. Management cannot reasonably estimate the length or severity of these global events, or the extent to which any disruption may materially impact the Company's financial position in fiscal 2026 and beyond.
The Company also faces uncertainties related to future environmental laws and climate-related regulations, which could affect the Company's financial position and future earnings. A transition to a lower-carbon society, as well as the potential impacts of climate change, could result in increased operating costs and reduced demand for oil and gas products. As a result, this could change a number of variables and assumptions used to determine the estimated recoverable amounts of the Company's oil and gas assets. The unpredictable nature, timing and extent of climate-related initiatives presents various risks and uncertainties.
Credit Facility
In June 2025, the Company formalized a new revolving credit facility of $5.0 million with a Canadian chartered bank (the "Credit Facility") replacing the former $22.5 million revolving credit facility. The facility is available on a revolving basis. The bank may cancel the availability of the Credit Facility at any time without prior notice or demand, acting in its sole discretion. As of December 31, 2025, there was no drawn balance on the Credit Facility (December 31, 2024 - $7.3 million).
The Credit Facility provides that advances may be made by way of direct advances, CORRA loans or letters of credit/guarantees. The facility bears interest at the bank's prime lending or CORRA rates plus applicable margins. The applicable margin charged by the bank is based upon the margin assigned to each loan instrument as defined in the lending agreement. During the periods of time over the twelve months ended December 31, 2025, when a drawn balance existed, the Credit Facility had an effective interest rate of 6.0% per annum. The Credit Facility is secured by a floating charge debenture on the assets of the Company.
The Company is required to maintain certain debt covenants throughout the term of the Credit Facility, as follows:
- Make expenditures toward asset retirement and abandonment and reclamation liabilities each fiscal year to the extent necessary to remain compliant with provincial, federal, and/or energy industry regulator requirements.
- When more than 70% of the Credit Facility is drawn, maintain oil and gas price hedges on a minimum of 25% of Company oil and gas production for a period of not less than 12 months.
- Maintain a minimum adjusted working capital ratio (as defined in the lending agreement) of 1.00. As of December 31, 2025, the Company's adjusted working capital ratio was 1.70.
As at December 31, 2025, the Company was compliant with all restrictions and covenants for the Credit Facility.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
In February 2026, the Bank and the Company agreed upon amended terms to the Credit Facility to reduce the available draw balance from $5.0 million to $1.5 million. The facility continues to be available on a revolving basis. All other terms, conditions and covenants of the Credit Facility remain unchanged.
PETROLEUM AND NATURAL GAS PROPERTIES
ROK's existing portfolio of core oil and gas assets are as follows:
- Southeast Saskatchewan - comprised of oil weighted conventional Frobisher, Alida and Midale prospects; and
- Kaybob Alberta - a gas-weighted, stacked multi-zone reservoir with upside locations in the Cardium, Montney, Bluesky and Dunvegan formations.
2025 realized production is as follows:
- Q4 2025: averaged 3,288 boe/d, comprised of 1,828 bbl/d of light/medium oil, 333 bbl/d of natural gas liquids and 6,761 Mcf/d of natural gas; and
- Year 2025: averaged 3,591 boe/d, comprised of 1,987 bbl/d of light/medium oil, 366 bbl/d of natural gas liquids and 7,424 Mcf/d of natural gas.
CORPORATE & OPERATIONAL REVIEW
During the year ended December 31, 2025, the Company efficiently utilized cash flows from operations towards debt elimination and disciplined capital expenditures in the field in light of weak commodity prices over the year. The Company executed a reduced capital program in 2025 while limiting impacts of production declines year-over-year. Average production rates on new drills stayed in line with expected type curves, while working capital targets for end of year were surpassed. This disciplined capital allocation has provided flexibility as the Company assesses accretive opportunities and continues its development program on existing oil and gas assets into the 2026 year.
Highlights for the Company's 2025 year include:
- Annual average production of 3,591 boe/d (66% liquids);
- Drilled 5 gross (2.9 net) wells in Southeast Saskatchewan;
- Realized net hedge gains on commodity contracts of $7.2 million;
- Elimination of outstanding debt principal of $7.3 million from December 31, 2024; and
- Invested $1.1 million to reduce environmental liabilities.
For 2025, the Company's capital expenditures were as follows:
- Drill, Complete and Tie-In ("DCET"): $2.9 million
- Recompletions and workovers: $0.3 million
- Facilities and gathering systems: $0.5 million
- Land and seismic: $1.3 million
- Abandonment and reclamation: $2.1 million
2026 CAPITAL BUDGET
Should commodity prices remain favorable in 2026, Funds from Operations will be directed toward profitable drilling endeavors to prioritize maintaining stable production rates. As commodity prices improve, the Company will pursue a more robust development plan aimed at maximizing Funds from Operations derived from the continued development and delineation of core plays, increasing petroleum and natural gas reserves while maintaining a resilient balance sheet. In both instances, the Company will be well positioned to consider alternate forms of returns
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
to its shareholders. During a period of pricing volatility, ROK believes a flexible approach best positions the Company to maximize shareholder value through disciplined capital allocation with little to no debt financing utilized.
2026 Budget Highlights
- Focus on Southeast Saskatchewan light oil prospects with development commencing late Q2 2026;
- Approximately 65% of capital expenditures allocated to DCET and production optimization;
- Conventional Frobisher drilling expected to continue to deliver strong capital efficiencies and quick payouts;
- Continue to exploit vast inventory of multi-lateral Midale prospects;
- Initiate two Southeast Saskatchewan Midale waterflood projects; and
- Increased land and seismic budget compared to previous years to grow core operating areas.
LITHIUM PROJECT INVESTMENT
The Company owns 17,085,000 common shares of EMP Metals, which is a Canadian-based lithium exploration and development company that trades on the Canadian Securities Exchange under the trading symbol “EMPS” and is focused on large-scale lithium resources using direct lithium extraction (“DLE”) for lithium discoveries located in Southern Saskatchewan. The Company continues to manage and administer the certain operational objectives on behalf of EMP Metals, including the following services:
- Investigate the lithium potential of target areas, including but not limited to the property, that are considered likely to be suited to the occurrence of such resource;
- Recommend and target additional properties that are considered likely to be suited to the occurrence of lithium; and
- Make recommendations with respect to the exploration, drilling, and testing of wells or wellbores and conduct, manage and administer such exploration, drilling, testing and development activities.
The EMP common shares held by ROK are subject to escrow provisions, with 50% of the EMP common shares being released in September 2026 and the remaining 50% being released in September 2027.
COMMITMENT SUMMARY UPDATE
As of the date of the MD&A, the Company had no contractual commitments related to service arrangements or otherwise. Future capital expenditures may come about under joint operating agreements with operator and/or non-operator partners on oil and gas production assets where the Company has a participating interest. As the Company elects to participate in future exploration and/or development programs under these joint operating agreements, the Company becomes contractually obligated to fulfill its financial commitment for these projects, or otherwise incur certain financial penalties for non-compliance as is customary under standard joint operating agreements.
DISCUSSION OF OPERATING RESULTS
Production
| Q4 2025 | Q4 2024 | Year 2025 | Year 2024 | |
|---|---|---|---|---|
| Crude oil (bbl/d) | 1,828 | 2,215 | 1,987 | 2,211 |
| NGLs (boe/d) | 333 | 430 | 366 | 411 |
| Natural gas (Mcf/d) | 6,761 | 8,038 | 7,424 | 8,220 |
| Total (boe/d) (1) | 3,288 | 3,985 | 3,591 | 3,992 |
(1) Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Refer to the section entitled "Conversion Measures" at the end of this MD&A.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
Oil and Natural Gas Sales
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Crude Oil | 11,930 | 18,517 | 58,035 | 73,671 |
| NGLs | 1,132 | 1,682 | 5,428 | 6,785 |
| Natural gas | 1,355 | 969 | 4,712 | 4,734 |
| Total | 14,417 | 21,168 | 68,175 | 85,190 |
Realized Sales Prices, before Hedging
| Q4 2025 | Q4 2024 | Year 2025 | Year 2024 | |
|---|---|---|---|---|
| Crude oil ($/bbl) | 70.95 | 90.85 | 80.02 | 91.04 |
| NGLs ($/boe) | 36.96 | 42.53 | 40.60 | 45.06 |
| Natural gas ($/Mcf) | 2.18 | 1.31 | 1.74 | 1.57 |
| Total ($/boe) | 47.67 | 57.74 | 52.02 | 58.30 |
2025 production declined when compared to 2024 primarily due to the Company's reduced drilling program, resulting in natural production declines in existing production assets with minimal new production to compensate. Overall pricing was down in 2025 with volatility in commodity pricing still prevalent due to ongoing global economic uncertainty, increased global conflicts, and reduced global demand causing fluctuations in revenue per boe and overall sales revenue of the Company.
Royalties
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Total royalties | 2,267 | 3,570 | 11,275 | 14,972 |
| Total royalties (% of sales) | 15.7% | 16.9% | 16.5% | 17.6% |
| Total royalties ($/boe) | 7.50 | 9.74 | 8.60 | 10.25 |
Royalties as a percentage of total oil and natural gas sales are highly sensitive to commodity prices and adjustments to gas cost allowance. Thus, royalty rates can fluctuate from quarter-to-quarter and year-to-year. Royalties as a percentage of revenues in 2024 and 2025 were within expectations given fluctuations in production and price. Lower production rates and lower commodity prices in 2025 results in lower assessed royalties for the year.
Operating Expenses
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| General operating | 5,498 | 6,151 | 22,596 | 27,055 |
| Processing and treatment | 1,547 | 1,942 | 6,769 | 8,614 |
| Transportation and gathering | 827 | 892 | 4,331 | 3,634 |
| Maintenance and workovers | 1,065 | 1,341 | 4,762 | 5,003 |
| Total operating expenses | 8,937 | 10,326 | 38,458 | 44,306 |
| General operating | 18.18 | 16.78 | 17.24 | 18.51 |
| Processing and treatment | 5.12 | 5.30 | 5.16 | 5.90 |
| Transportation and gathering | 2.73 | 2.43 | 3.30 | 2.49 |
| Maintenance and workovers | 3.52 | 3.66 | 3.63 | 3.42 |
| Total operating expenses ($/boe) | 29.55 | 28.17 | 29.34 | 30.32 |
The Company's 2025 total operating expenses per boe were 3% lower compared to 2024. Reductions in general operating and processing & treatment expenses in 2025 contributed to the overall decrease in operating expenses in the year on a per boe basis. Overall increases in transportation and gathering as well as maintenance and
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
workovers expenses per boe can be attributed to inflationary effects on goods and services provided in the industry. The Company expects operating costs to continue to reduce through 2026 based on focused efforts to improve operating efficiencies. However, uncertainty around ongoing global geo-political matters may have an impact on future operating costs, which management can not reliably forecast.
Gains (Losses) on Commodity Contracts
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Realized gain on commodity contracts | 197 | 862 | 7,230 | 2,676 |
| Unrealized gain (loss) on commodity contracts | (114) | (6,131) | 953 | (5,333) |
| Total | 83 | (5,269) | 8,183 | (2,657) |
For the year ended December 31, 2025, the Company recognized realized gains of $7.2 million on risk management commodity contracts maturing and deliberately liquidated in the year (2024 - $2.7 million) and unrealized gains of $1.0 million on existing risk management commodity contracts to mature at a future date (2024 - unrealized loss of $5.3 million). The unrealized gains and losses reflect the mark-to-market change in fair value of the oil and gas price hedges up to the end of December 2025 on future oil and gas production from the Company's oil and gas assets (see below) while realized gains reflect the cash settlement on oil and gas price hedges at the time of maturity or liquidation of each hedge contract.
General and Administrative Expenses
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Wages & Salaries | 677 | 1,505 | 2,775 | 3,887 |
| Professional Fees | 633 | 361 | 1,183 | 700 |
| Fees, Rent, Investor Relations and Other | 607 | 373 | 1,550 | 1,260 |
| Total | 1,917 | 2,239 | 5,508 | 5,847 |
Overall G&A expenses were down in Q4 2025 when compared to the 2024 comparative period. This was primarily due to lower staff costs in 2025 versus 2024. Consultant costs and general overhead costs saw increases when comparing 2025 to 2024. These increases can be attributed to increased utilization of professional consultants and reduced overhead recoveries billed in the 2025 when compared to 2024.
Stock-Based Compensation
The Company recorded stock-based compensation expense of $702,000 for the year ended December 31, 2025 (2024 - $408,000). Stock options were granted in Q2 2025, with the vesting of these new options accounting for the majority of stock-based compensation expense in 2025. The increased stock-based compensation expense is a reflection of the increased 2025 grants versus the comparative 2024 periods, as the executives and directors moved to RSUs after they voluntarily extinguished their remaining stock options.
Depletion and Depreciation
The carrying costs for property, plant and equipment directly associated with oil and gas operations, including estimated future development costs, are recognized as depletion expense in the statements of loss and comprehensive loss on a unit of production basis over proved plus probable reserves. The carrying costs of office and computer equipment are recognized as depreciation expense on a straight-line or declining-balance basis.
For the year ended December 31, 2025, the Company recorded depletion expense of $19.1 million ($22.7 million for the 2024 comparative period). Depletion is calculated based on oil and gas production on the Company's developed properties. Depreciation expense of $126,000 on leased equipment was also recognized in 2025 ($125,000 in 2024).
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
Impairment Loss
For Year 2025, indicators of impairment were present in both our Alberta and Saskatchewan cash-generating units ("CGU") due to a decline in commodity prices. As a result of the indicators of impairment, the Company performed an impairment calculation on the identified the two CGUs and the recoverable amounts was determined using fair value less costs of disposal, which considered future cash flows from all reserves at a discount rate between 11-27% percent, dependant on the risk profile of the reserve category. Based on the results of the impairment test completed, the Company recognized non-cash impairment charges of $6.1 million on the Alberta CGU ($2.7 million on the Alberta CGU in 2024) and $8.7 million on the Saskatchewan CGU ($nil on the Saskatchewan CGU in 2024).
During Year 2025, the Company also recognized impairment expense of $1.0 million for working interest held in lost facilities in Southeast Saskatchewan due to fire. The Company received $1.0 million as a result of the insurance payout, which has been recorded in other income.
Net Finance Expenses
| ($000s) | Q4 2025 | Q4 2024 | Year 2025 | Year 2024 |
|---|---|---|---|---|
| Interest (income) | (29) | (5) | (107) | (9) |
| Interest expense & bank charges | 11 | 60 | 107 | 263 |
| Debt interest expense | 5 | 216 | 246 | 1,136 |
| Lease liability interest expense | 7 | 9 | 31 | 37 |
| RSU liability revaluation loss | 14 | - | 110 | - |
| Accretion on debt | - | 99 | 26 | 393 |
| Accretion on decommissioning obligations | 457 | 429 | 1,826 | 1,684 |
| Total | 465 | 808 | 2,239 | 3,504 |
Net finance expenses were $2.2 million for the year ended December 31, 2025, compared to net finance expenses of $3.5 million for the comparative period in 2024. Finance expenses include accretion on decommissioning obligations that are associated with oil and gas properties, and accretion and interest expense related to existing debt in each period. Decrease in finance expenses year-over-year are a result of changes to debt structure.
Unrealized Gain on Marketable Securities
The EMP common shares are accounted for as a financial asset and are measured at fair value through profit or loss at each period end. As of December 31, 2025, these marketable securities had an assessed fair value of $9.2 million, resulting in an unrealized gain of $0.7 million ($8.5 million assessed fair value and $0.2 million unrealized loss for 2024).
Business Development Expenses
The Company incurred business development expenses of $1.0 million during the year end December 31, 2025. Such expenses were incurred in connection with efforts to complete the Arrangement Agreement and eventual closing of the Arrangement transaction. These costs were expensed in the period in which they were incurred.
CAPITAL EXPENDITURES
For the year ended December 31, 2025, the Company incurred $5.0 million in capital expenditures, not including $1.1 million that was allocated to asset retirement obligations. This included $2.9 million towards DCET activities, $0.3 million towards well reactivations, $1.3 million towards land and seismic acquisitions, and $0.5 million towards facilities and equipment.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
FINANCIAL RISK MANAGEMENT
The Company has exposure to the following risks from its use of financial instruments:
Credit risk
Liquidity risk
Market risk
This note presents information about the Company's exposure to each of the above risks and the Company's objectives, policies and processes for measuring and managing these risks, and the Company's management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company's activities.
Credit risk
Credit risk reflects the risk of loss if counterparties do not fulfill their contractual obligations and arises principally from the Company's receivables from joint operations partners and petroleum and natural gas customers.
Receivables from petroleum and natural gas marketers are normally collected on the $25^{\text{th}}$ day of the month following production. When production is not taken in kind, payment comes from the common stream operator and facility operator in which payment is typically received on the $25^{\text{th}}$ day of the $2^{\text{nd}}$ month following production. The Company's approach to mitigate credit risk associated with these balances is to maintain marketing relationships with established and reputable customers, common stream operators and facility operators that are considered to be creditworthy. The Company has not experienced any collection issues with its current common stream and facility operators.
Joint operations receivables are typically collected within two to three months of the joint operations billing being issued to the partner. The Company mitigates collection risk from joint operations receivables by obtaining partner approval of significant capital and operating expenditures prior to expenditure and, in certain circumstances, may collect cash deposits in advance of incurring financial obligations on behalf of joint operations partners. Joint operations receivables are from partners in the petroleum and natural gas industry who are subject to the risks and conditions of the industry. Significant changes in industry conditions and risks that negatively impact partners' ability to generate cash flow will increase the risk of not collecting joint operations receivables.
In determining the recoverability of trade and other receivables, the Company considers the type and age of the outstanding receivables, the credit risk of the counterparties, and the recourse available to the Company. The maximum exposure to credit risk for accounts receivable and accruals, net of expected credit loss at the reporting date by type of customer was:
| Carrying Amount ($000s) | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Oil and natural gas customers | 4,619 | 7,701 |
| Joint operations partners | 1,861 | 3,503 |
| Accruals and other | 195 | 324 |
| Total | 6,675 | 11,528 |
The Company applies the simplified approach to providing for expected credit losses as prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all accounts receivable and accrued receivables. The expected credit losses below also incorporate forward looking information.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
The Company considers amounts outstanding greater than 90 days to be at greater risk of being uncollectible, unless circumstances on particular balances provide certainty of collection. Receivables normally collectible within 30 to 60 days can take longer as information requests and timing can come into effect in dealing with receivables from joint venture partners. At December 31, 2025, there were $322,000 in receivables which were considered uncollectible (December 31, 2024 - $186,000).
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due and describes the Company's ability to access cash. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient cash resources in order to finance operations, fund capital expenditures, and to repay debt and other liabilities of the Company as they come due, without incurring unacceptable losses or risking harm to the Company's reputation. The Company's processes for managing liquidity risk include preparing and monitoring capital and operating budgets, coordinating and authorizing project expenditures, and authorization of contractual agreements. Management and the Board of Directors use budgets and forecasts to direct and monitor the strategy, operations and liquidity of the Company as well as the ongoing ability of the Company to remain in compliance with its commitments and the terms and covenants associated with its Credit Facility. The budgets are updated when required as conditions change.
The table below outlines the contractual maturities of the Company's financial liabilities as at December 31, 2025:
| ($000s) | Less than 1 year | 1-2 years | Thereafter | Total |
|---|---|---|---|---|
| Accounts payable | 8,154 | - | - | 8,154 |
| Lease obligations (1) | 134 | 110 | 80 | 324 |
| 8,288 | 110 | 80 | 8,478 |
(1) Reflects timing of lease payments on existing lease obligations
Volatility in commodity prices in the oil and gas sector creates inherent challenges with the preparation of financial forecasts and may ultimately lead to adverse changes in the Company's future cash flows, working capital levels and/or debt balances. These and other factors may adversely affect the Company's liquidity and the ability to generate profits and cash flows in the future as well as the ability of the Company to remain in compliance with the terms and covenants of its Credit Facility.
Market risk
Market risk is the risk or uncertainty that changes in price, such as commodity prices, foreign exchange rates, and interest rates will affect the Company's net earnings and the value of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable limits, while maximizing returns. From time to time, the Company may utilize financial derivative contracts to manage market risks in accordance with the risk management policy that has been approved by the Board of Directors. The Company's balance sheet at December 31, 2025, includes risk management assets for crude oil, natural gas and liquids derivative contracts recorded at fair value which was a net asset position of $0.1 million (December 31, 2024 – $0.8 million, net liability). The Company's statement of comprehensive loss for the year ended December 31, 2025, includes unrealized gains on risk management contracts of $1.0 million (December 31, 2024 - $5.3 million unrealized loss).
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
Commodity price risk
Commodity price risk is the risk that the fair value of the future cash flows will fluctuate as a result of changes in commodity prices. Commodity prices have fluctuated widely in recent years due to global and regional factors including supply and demand fundamentals, inventory levels, weather and economic and geopolitical factors.
The Company manages risk associated with the changes in commodity prices by entering into a variety of risk management contracts. The Company assesses the effects of movement in commodity prices on income before tax.
As of December 31, 2025, the Company has the following commodity risk management contracts outstanding:
| Type of Contract | Quantity | Period | Contract Price (C$)(1) |
|---|---|---|---|
| Swap Contracts - AECO | 4,594 mmbtu/d | Q1 2026 | $3.17/mmbtu |
| Swap Contracts - AECO | 1,348 mmbtu/d | Q2 2026 | $2.47/mmbtu |
(1) Prices reported are the average price for the period.
Subsequent to December 31, 2025, the Company entered into the following additional risk management contracts:
| Type of Contract | Quantity | Period | Contract Price (C$)(1) |
|---|---|---|---|
| Physical Contracts - WTI Crude | 198 bbl/d | Q2 2026 | $104.63/bbl |
| Physical Contracts - WTI Crude | 200 bbl/d | Q3 2026 | $109.28/bbl |
(1) Prices reported are the average price for the period.
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in foreign currency exchange rates. The majority of the Company's administrative and operational costs will be based and paid in CAD.
The Company is exposed to the risk of fluctuations in foreign exchange rates between the Canadian dollar and the US dollar given the risk of changes in the USD/CAD exchange rate on crude oil sales based on USD benchmark prices.
Interest rate risk
Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in prevailing market interest rates. The Company is exposed to interest rate risk on the Credit Facility, with interest rates based on the bank's prime lending or CORRA rates plus applicable margins. Fluctuations of interest rates could result in an increase or decrease in the amount ROK pays to service the variable interest rate debt.
Fair value of financial instruments
The Company's financial instruments as at December 31, 2025, include, accounts receivable, accounts payable and accrued liabilities, risk management contracts, marketable securities, and debt.
The Company's financial instruments recorded at fair value require disclosure about how the fair value was determined based on significant levels of inputs described in accordance with the following hierarchy:
Level 1 - inputs are based on quoted market prices in active markets that the Company has the ability to access at the measurement date.
Level 2 - inputs are based on quoted prices in the markets that are not active or based on prices that are observable for the asset or liability.
Level 3 - inputs are based on unobservable market data for the asset or liability.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
The Company aims to maximize the use of observable inputs when preparing calculations of fair value. Classification of each measurement into the fair value hierarchy is based on the lowest level of input that is significant to the fair value calculation.
The fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to their short terms to maturity. The fair value measurement of the marketable securities have a fair value hierarchy of Level 1. The fair value measurement of the risk management contracts and debt have a fair value hierarchy of Level 2.
The fair values of financial derivatives are recurring measurements and are determined whenever possible based on observable market data. If not available, the Company uses third party models and valuation methodologies that utilize observable market data including forward benchmark commodity prices, forward interest rates and forward foreign exchange rates to estimate the fair value of financial derivatives. In addition to market information, the Company incorporates transaction specific details that market participants would utilize in a fair value measurement, including the impact of non-performance risk. The valuation technique used has not changed in the period.
Capital management
The Company's objectives when managing capital are to ensure the Company will have sufficient financial capacity, liquidity, and flexibility to fund the Company's operations and potential strategic transactions for the foreseeable future. The Company is dependent upon funding these activities through a combination of available cash, debt and equity, which it considers to be the components of its capital structure as outlined below.
The Company monitors leverage and adjusts its capital structure based on its net debt level. Net debt is defined as the principal amount of its outstanding long-term obligations less adjusted working capital. In order to facilitate the management of its net debt, the Company prepares annual budgets, which are updated as necessary depending on varying factors including current and forecast commodity prices, changes in capital structure, execution of the Company's business plan and general industry conditions. The annual budget is approved by the Board of Directors and updates are prepared and reviewed as required.
| ($000s) | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | 5,744 | - |
| Accounts receivable | 6,675 | 11,528 |
| Prepaids and deposits | 220 | 284 |
| Current portion of risk management contracts | 141 | (771) |
| Accounts payable and accrued liabilities | (8,154) | (15,346) |
| Adjusted working capital (2) | 4,626 | (4,305) |
| Credit Facility (1) | - | (7,349) |
| Lease obligations (1) | (324) | (475) |
| Less: adjusted working capital (2) | 4,626 | (4,305) |
| Net surplus (debt) | 4,302 | (12,129) |
(1) Represents undiscounted face value of debt balances and lease obligations outstanding as of each respective date presented.
(2) Calculation of adjusted working capital excludes current portion of debt and lease liabilities as presented on the statement of financial position. The mark-to-market fair value of the current portion of risk management contracts is included within adjusted working capital.
The Company regularly monitors its capital structure and, as necessary, adjusts to changing economic circumstances and the underlying risk characteristics of its assets in order to meet current and upcoming obligations and investments by the Company. The Company frequently reviews alternate financing options and arrangements to meet its current and upcoming commitments and obligations.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
The Company's objectives when managing capital are: (i) to maintain a flexible capital structure, which optimizes the cost of capital at acceptable risk; and (ii) to maintain investor, creditor and market confidence in order to sustain the future development of the business. The Company's share capital is not subject to external restrictions with the exception of lender approval on payment of dividends.
SHAREHOLDERS' EQUITY
Common shares
At December 31, 2025, the Company was authorized to issue an unlimited number of Class B Shares, with no par value, with holders of Class B Shares entitled to one vote per share and to dividends, if declared. Outstanding Class B Shares as of December 31, 2025, are as follows:
| Class B shares | Amount ($000s) | |
|---|---|---|
| Balance, January 1, 2024 | 218,418,315 | 28,052 |
| Stock option exercise | 1,350,000 | 367 |
| Warrant exercise | 1,000 | 1 |
| Balance, December 31, 2024 | 219,769,315 | 28,420 |
| Shares purchased and cancelled | (2,005,500) | (385) |
| Balance, December 31, 2025 | 217,763,815 | 28,035 |
Warrants
The Company has issued and outstanding warrants exercisable to acquire Class B Shares of the Company that were issued as part of particular financings carried out over time. A summary of the changes in warrants is presented below:
| Warrants | Weighted average exercise price | |
|---|---|---|
| Balance, January 1, 2024 | 113,141,877 | 0.25 |
| Warrant exercise | (1,000) | 0.25 |
| Balance, December 31, 2024 | 113,140,877 | 0.25 |
| Warrant expiries | (113,140,877) | 0.25 |
| Balance, December 31, 2025 | - | - |
Stock options
The Company has a stock option plan whereby options can be granted from time to time to directors, officers, employees and consultants at the discretion of the Board of Directors. The number of options that can be granted is limited to 10% of the total shares issued and outstanding. Options issued typically vest one-third on the date of the grant, one-third after one year following the date of the grant, and one-third after two years following the grant date. Options issued typically expire five years following the date of the grant.
A summary of the changes in stock options is presented below:
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
| Stock options | Weighted average exercise price | |
|---|---|---|
| Balance, January 1, 2024 | 19,860,000 | 0.27 |
| Options issued | 1,885,000 | 0.23 |
| Options exercised | (1,350,000) | 0.15 |
| Options forfeited | (1,400,000) | 0.25 |
| Balance, December 31, 2024 | 18,995,000 | 0.27 |
| Options issued | 1,250,000 | 0.20 |
| Options forfeited | (13,485,000) | 0.27 |
| Balance, December 31, 2025 | 6,760,000 | 0.28 |
| Exercisable, December 31, 2025 | 5,356,623 | 0.29 |
In May and June 2025, the Company granted 250,000 and 1,000,000 options respectively to acquire common shares to certain employees of the Company at a price of $0.20 per common share. For options granted, one-third of the options vest on date of grant, one-third on the first anniversary date, and one-third on the second anniversary date. The options under each grant expire five years from the date of grant.
The following summarizes information about stock options outstanding as at December 31, 2025:
| Exercise prices | Number of options outstanding | Weighted average term to expiry (years) | Number of options exercisable |
|---|---|---|---|
| 0.20 | 1,250,000 | 4.73 | 416,658 |
| 0.21 | 1,260,000 | 4.02 | 839,966 |
| 0.25 | 1,150,000 | 1.48 | 1,150,000 |
| 0.28 | 200,000 | 0.81 | 200,000 |
| 0.30 | 1,400,000 | 2.45 | 1,249,999 |
| 0.35 | 275,000 | 2.91 | 275,000 |
| 0.40 | 1,225,000 | 2.42 | 1,225,000 |
| 6,760,000 | 2.96 | 5,356,623 |
As of the date of this MD&A, the Company maintained balances of 217,763,815 Class B Shares, and 6,760,000 stock options.
LONG-TERM INCENTIVE COMPENSATION
In June 2025, the Company's Board of Directors approved a new Restricted Share Unit Plan ("RSU Plan") as an additional form of long-term incentive compensation which allows the Board to grant Restricted Share Units ("RSUs") to directors, officers, employees and consultants of the Company. At the time of redemption of RSUs granted, a cash payment equal to the fair market value of each redeemed RSU is to be paid to the RSU holders. The fair market value is determined based on the volume weighted average trading price per Common Share of the Company on the Exchange for the last five trading days ending immediately before the redemption date.
For RSUs granted to non-directors, one-third of the granted RSUs will vest on each of the first, second and third years following the date of grant, unless otherwise determined by the Board of Directors of the Company. RSUs granted to directors vest immediately but are not redeemable until the holder ceases to be a director of the Company.
As of December 31, 2025, a total of 4,400,000 RSUs were granted to directors and officers of the Company. For the year ended December 31, 2025, the Company recognized $524,000 in stock-based compensation expense in relation to the vesting of RSUs. Furthermore, the Company recognized a $110,000 loss in finance expense on revaluation of
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
the RSU liability as of December 31, 2025. As such, the RSU liability as at December 31, 2025, was $636,000 (December 31, 2024 - $nil).
NEW ACCOUNTING STANDARDS
A number of new IFRS accounting standards, amendments to existing IFRS accounting standards, and interpretations that are effective for annual periods beginning on January 1, 2025, have been issued or published. None of these accounting pronouncements had a material impact upon initial adoption. The Company will continue to evaluate the impact of the pronouncements that are effective in future years which will be adopted on their effective dates.
USE OF ESTIMATES AND JUDGMENTS
The timely preparation of the Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities and income and expenses. Accordingly, actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant estimates and judgments made by management in the preparation of the Financial Statements are outlined below.
The Company continues to assess the impact of climate change on the Financial Statements. The Company is currently analyzing potential internal greenhouse gas reduction initiatives and is continually monitoring regulatory initiatives that may impact its existing businesses. The impact of these changes will be assessed in future reporting periods to ensure any changes in assumptions that would impact estimates listed below are adjusted on a timely basis.
Critical judgments in applying accounting policies
The following are the critical judgments that management has made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the Financial Statements:
i) Identification of cash-generating units
The Company's assets are aggregated into cash-generating units, for the purpose of calculating impairment, based on their ability to generate largely independent cash flows. By their nature, these estimates and assumptions are subject to measurement uncertainty and may impact the carrying value of the Company's assets in future periods.
ii) Impairment of property, plant and equipment
Judgments are required to assess when impairment indicators or reversal indicators, exist and impairment testing is required. In determining the recoverable amount of assets, in the absence of quoted market prices, impairment tests are based on estimates with respect to forecasted production volumes, forecasted petroleum and natural gas prices, forecasted operating costs, forecasted royalties, and forecasted future development costs, discount rates, market value of land and other relevant assumptions.
iii) Income taxes
Judgments are made by management to determine the likelihood of whether deferred income tax assets at the end of the reporting period will be realized from future taxable earnings. To the extent that assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognized in respect of deferred tax assets as well as the amounts recognized in profit or loss in the period in which the change occurs.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
iv) Asset Acquisitions
The application of the Company’s accounting policy for business combinations requires management to make certain judgments in applying the optional concentration test under IFRS 3 Business Combinations, to determine whether the acquired assets meet the definition of a business combination or an asset acquisition. Where an acquisition involves a group of assets and liabilities, and does not constitute a business, the acquirer must identify and recognize the individual assets acquired and liabilities assumed. The cost of the transaction is allocated to the assets acquired and liabilities assumed based on their relative fair values at the date of purchase.
Key sources of estimation uncertainty
The following are the key assumptions concerning the sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing adjustments to the carrying amounts of assets and liabilities, where applicable.
i) Reserves assessment
The estimate of proved and probable petroleum and natural gas reserves and the related cash flows includes significant estimates and assumptions related to: 1) forecasted petroleum and natural gas commodity prices; 2) forecasted production volumes; 3) forecasted operating costs; 4) forecasted royalty costs; and 5) forecasted future development costs. Other estimates which impact the assessment of the reported recoverable quantities of proved and probable reserves and prospective resource estimates include estimates regarding exchange rates, remediation costs, timing and production, transportation and marketing costs for future cash flows.
It also requires interpretation of geological and geophysical models in anticipated recoveries and estimates with respect to production profiles. The economical, geological and technical factors used to estimate reserves and prospective resources may change from period to period. Changes in reported reserves and prospective resources can impact the carrying values of the Company’s petroleum and natural gas properties and exploration and evaluation assets and equipment, the calculation of depletion and depreciation, the provision for decommissioning obligations, the recognition of deferred tax assets due to changes in expected future cash flows, and the estimated fair value of property, plant and equipment acquired in a business combination.
The Company’s petroleum and natural gas reserves represent the estimated quantities of petroleum, natural gas and natural gas liquids which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be economically recoverable in future years from known reservoirs and which are considered commercially viable. Such reserves may be considered commercially producible if management has the intention of developing and producing them and such intention is based upon (i) a reasonable assessment of the future economics of such production; (ii) a reasonable expectation that there is a market for all or substantially all the expected petroleum and natural gas production; and (iii) evidence that the necessary production, transmission and transportation facilities are available or can be made available. Reserves may only be considered proven and probable if the ability to produce is supported by either actual production or conclusive formation tests. Prospective resources are determined using an externally prepared valuation report which reflects estimated prospective resources and external pricing and costs assumptions reflective of the current market. The Company’s petroleum and gas reserves and prospective resources are determined pursuant to National Instrument 51-101, Standard of Disclosures for Oil and Gas Activities.
The Company uses estimated proved and probable petroleum and natural gas reserves from an independent third-party reserve evaluation to estimate the fair value of property, plant and equipment acquired and the fair value of the PP&E disposed in a business combination. Further, the Company uses estimated proved and probable petroleum and natural gas reserves to deplete its development and production assets, to assess for indicators of impairment or impairment reversal on each of the Company’s CGU and if any such indicators exist, to perform an impairment test to estimate the recoverable amount of the CGUs.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
The Company engaged independent third-party reserve evaluators to estimate proved and probable petroleum and natural gas reserves as at December 31, 2024 and 2025.
For the Company's depletion calculations and impairment tests, the Company used the December 31, 2025, independent third-party reserve evaluators estimate of proved and probable petroleum and natural gas reserves.
ii) Decommissioning obligations
The Company estimates future remediation costs of production facilities, wells and pipelines at different stages of development and construction of assets or facilities. In most instances, removal of assets occurs many years into the future. This requires assumptions regarding abandonment date, future environmental and regulatory legislation, the extent of reclamation activities, the engineering methodology for estimating cost, future removal technologies in determining the removal cost and liability-specific discount rates to determine the present value of these cash flows.
iii) Business combinations
In a business combination, management makes estimates of the fair value of assets acquired and liabilities assumed as part of the acquisition transaction, which includes assessing the value of oil and gas properties based upon the estimation of recoverable quantities and cash flows from proved and probable oil and gas reserves being acquired, discounted at an estimated rate that reflects a market participants view of the risks associated with the cash flows.
iv) Share-based payments
All equity-settled, share-based awards issued by the Company are recorded at fair value using the Black-Scholes option-pricing model. In assessing the fair value of equity-based compensation, estimates have to be made regarding the expected volatility in share price, option life, dividend yield, risk-free rate and estimated forfeitures at the initial grant date.
v) Tax provisions
Tax provisions are based on enacted or substantively enacted laws. Changes in those laws could affect amounts recognized in profit or loss both in the period of change, which would include any impact on cumulative provisions, and in future periods. Deferred tax assets (if any) are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse.
Matters relating to economic uncertainty
Estimates are more difficult to determine, and the range of potential outcomes can be wider, in periods of higher volatility and uncertainty. The impacts of the higher levels of uncertainty due to the Russian invasion of Ukraine, the Israel-Hamas war, and ongoing international politically driven trade uncertainty and their impact on energy markets, rising interest and inflation rates, and constrained supply chains have created a higher level of volatility and uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into the estimates made, however, actual results could differ from those estimates and those differences could be material.
Changing regulations
Emissions, carbon and other regulations impacting climate and climate-related matters are constantly evolving. With respect to environmental, social, governance ("ESG") and climate reporting, the International Sustainability Standards Board ("ISSB") has issued its first two IFRS Sustainability Disclosure Standards: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures (together, the ISSB Standards). The ISSB Standards aim to develop sustainability disclosure standards that are globally consistent, comparable and reliable. Mandatory application of the ISSB Standards depends on each jurisdiction's endorsement or regulatory processes. In the Company's case, the Canadian Securities Administrators
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
("CSA") is responsible for developing climate-related disclosure requirements for reporting issuers in Canada. The CSA published Proposed National Instrument 51-107 – Disclosure of Climate Related Matters which is intended to introduce climate-related disclosure requirements for reporting issuers in Canada with limited exceptions. The Canadian Sustainability Standards Board ("CSSB") has been established to review the ISSB Standards for their suitability for adoption in Canada. In March 2024, the CSSB published two exposure drafts: CSDS 1 - General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2 – Climate-related Disclosures, for public comment. Until such time as the CSA and CSSB make final decisions on sustainability standards for Canada, there is no requirement for public companies in Canada to adopt sustainability standards. The Company is awaiting further guidance from the CSA on their final rules.
If the Company is not able to meet future sustainability reporting requirements of regulators or current and future expectations of investors, insurance providers, or other stakeholders, its business and ability to attract and retain skilled employees, obtain regulatory permits, licenses, registrations, approvals, and authorizations from various governmental authorities, and raise capital may be adversely affected. The cost to comply with these standards, and others that may be developed or evolve over time, has not yet been quantified. The Company continues to monitor the evolving ESG regulations and its potential impact on the Company.
PRINCIPAL BUSINESS RISKS
The Company's business and results of operations are subject to a number of risks and uncertainties which include, but are not limited to, the following:
Crude Oil and Natural Gas Development
Exploration, development, production of oil and natural gas involves a wide variety of risks which include, but are not limited to, the uncertainty of finding oil and gas in commercial quantities, securing markets, commodity price fluctuations, exchange and interest rate exposure and changes to government regulations, including regulations relating to prices, taxes, royalties, and environmental protection. The oil and gas industry is intensely competitive and the Company competes with a large number of companies with greater resources.
The Company's ability to obtain reserves in the future will depend not only on its ability to develop its current properties, but also on its ability to acquire new prospects and producing properties. The acquisition, exploration and development of new properties also require that sufficient capital from outside sources will be available to the Company in a timely manner. The availability of equity or debt financing is affected by many factors, many of which are beyond the control of the Company.
Addition of Reserves and Resources
The Company's future crude oil and natural gas reserves, production, and cash flows to be derived therefrom are highly dependent on the Company successfully discovering and developing or acquiring new reserves and resources. The addition of new reserves and resources will depend not only on the Company's ability to explore and develop properties but also, in the case of reserves, on its ability to select and acquire suitable producing properties or prospects. There can be no assurance that the Company's exploration, development or acquisition efforts will result in the discovery and development of commercial accumulations of oil and natural gas.
Reserve Estimates
There are numerous uncertainties inherent in estimating quantities of reserves, including many factors beyond the control of the Company. Estimates of reserves depend in large part upon the reliability of available geological and engineering data and require certain assumptions to be made in order to assign reserve volumes. Geological and engineering data is used to determine the probability that a reservoir of oil and/or natural gas exists at a particular location, and whether, and to what extent, such hydrocarbons are recoverable from the reservoir. Accordingly, the ultimate reserves discovered by the Company may be significantly less than the total estimates.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
Exploration Risks
The exploration of the Company's properties may from time to time involve a high degree of risk that no production will be obtained or that the production obtained will be insufficient to recover drilling and completion costs. The costs of seismic operations and drilling, completing and operating wells are uncertain to a degree. Cost overruns can adversely affect the economics of the Company's exploration programs and projects. In addition, the Company's seismic operations and drilling plans may be curtailed, delayed or cancelled as a result of numerous factors, including, among others, equipment failures, weather or adverse climate conditions, shortages or delays in obtaining qualified personnel, shortages or delays in the delivery of or access to equipment, necessary governmental, regulatory or other third-party approvals and compliance with regulatory requirements.
Environmental Risks
Oil and gas exploration and production can involve environmental risks such as litigation, physical and regulatory risks. Physical risks include the pollution of the environment, climate change and destruction of natural habitat, as well as safety risks such as personal injury. The Company works hard to identify the potential environmental impacts of its new projects in the planning stage and during operations. The Company conducts its operations with high standards in order to protect the environment, its employees and consultants, and the general public. ROK maintains current insurance coverage for comprehensive and general liability as well as limited pollution liability. The amount and terms of this insurance are reviewed on an ongoing basis and adjusted as necessary to reflect current corporate requirements, as well as industry standards and government regulations. Without such insurance, and if the Company becomes subject to environmental liabilities, the payment of such liabilities could reduce or eliminate its available funds or could exceed the funds the Company has available and result in financial distress.
Climate Change Risks
Our exploration and production facilities and other operations and activities emit greenhouse gasses ("GHG") which may require us to comply with federal and/or provincial GHG emissions legislation. Climate change policy is evolving at regional, national and international levels, and political and economic events may significantly affect the scope and timing of climate change measures that are ultimately put in place to prevent climate change or mitigate our effects. The direct or indirect costs of compliance with GHG-related regulations may have a material adverse effect on the business, financial condition, results of operations and prospects of the Company. Some of ROK's facilities may ultimately be subject to future regional, provincial and/or federal climate change regulations to manage GHG emissions. In addition, climate change has been linked to long-term shifts in climate patterns and extreme weather conditions both of which pose the risk of causing operational difficulties.
Key Personnel
The Company's success depends in large part on the ability of its executive management team to deal effectively with complex risks and relationships and execute the Company's business plan. The members of the management team contribute to the Company's ability to obtain, generate and manage opportunities. There can be no assurance that the Company's present key personnel and directors will remain with the Company. The departure of any such key person or director may materially affect the Company's business, financial condition, results of operations, and the value of the Class B Shares.
Public Market Risk
There can be no assurance that an active trading market in the Company's securities will be sustained. The market price for the Company's securities could be subject to wide fluctuations. Factors such as commodity prices, government regulation, interest rates, share price movements of the Company's peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the securities of the Company. The stock market from time to time has experienced extreme price and volume fluctuations, which may be unrelated to the operating performance of particular companies.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
Dividends
To date, the Company has not paid regular dividends on its outstanding securities and does not anticipate paying any dividends in the foreseeable future. With the exception of lender approval, there are no restrictions in the Company's articles or elsewhere which would prevent the Company from paying dividends. It is not contemplated that any dividends will be paid on the Class B Shares in the immediate future as it is anticipated that all available funds will be invested to finance the growth of the Company's business. The directors of the Company will determine if, and when, dividends will be declared and paid in the future from funds properly applicable to the payment of dividends based on the Company's earnings, financial position and other conditions at the relevant time. All of the Class B Shares are entitled to an equal share in any dividends declared and paid.
Failure to Maintain Listing of the Class B Shares
The Class B Shares are currently listed for trading on the facilities of the TSXV. The failure of the Company to meet the applicable listing or other requirements of the TSXV in the future may result in the Class B Shares ceasing to be listed for trading on the TSXV, which would have a material adverse effect on the value of the Class B Shares. There can be no assurance that the Class B Shares will continue to be listed for trading on the TSXV.
Structure of the Company
From time to time, the Company may take steps to organize its affairs in a manner that minimizes taxes and other expenses payable with respect to the operation of the Company and its subsidiaries. If the manner in which the Company structures its affairs is successfully challenged by a taxation or other authority, the Company and the holders of Class B Shares may be adversely affected.
Management's Report on Internal Control over Financial Reporting
In connection with National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings ("NI 52-109") adopted by each of the securities commissions across Canada, the Chief Executive Officer and Chief Financial Officer of the Company are required to file a Venture Issuer Basic Certificate with respect to the financial information contained in the unaudited interim consolidated financial statements and the audited annual consolidated financial statements and respective accompanying Management's Discussion and Analysis. The Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52- 109.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This MD&A offers an assessment of the Company's future plans and operations as of the date hereof and may contain forward-looking information. All statements other than statements of historical fact are forward-looking statements. Such information is generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "may", "plan", "will", "project", "should", "believe" and similar expressions. Statements relating to "reserves" or "resources" are also forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the resources and reserves described can be profitably produced in the future. All such statements involve known and unknown risks, uncertainties, and assumptions.
Management believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking information included in this MD&A should not be unduly relied upon as the plans, assumptions, intentions, or expectations upon which it is based may not occur. Actual results or events may vary from the forward-looking information.
In particular, this MD&A may contain forward-looking information pertaining to the following:
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
- the potential of the Company's assets,
- the Company's growth strategy and opportunities,
- performance characteristics of the Company's oil properties and estimated capital commitments and probability of success,
- crude oil production and recovery estimates and targets,
- forecasted Operating Income in future periods,
- the existence and size of the oil reserves and resources,
- capital expenditure programs and estimates, including the timing of activity,
- plans for, and results of, exploration and development activities,
- projections of market prices and costs,
- the supply and demand for oil,
- expectations regarding forecasted Net Debt balances in the future and Company expectations for servicing existing debt,
- expectations regarding the ability to raise equity and debt capital on acceptable terms, including the ability to negotiate and complete any agreements contemplated,
- the timing for receipt of regulatory approvals, and
- treatment of the Company under governmental regulatory regimes and tax laws.
The purpose of providing any financial outlook in this MD&A is to illustrate how the business of the Company might develop without the benefit of specific historical financial information. Readers are cautioned that this information may not be appropriate for other purposes.
The forward-looking information herein is based on certain assumptions and analysis by the management of the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors that it believes are appropriate and reasonable under the circumstances. The forward-looking information herein is based on a number of assumptions, including but not limited to:
- the availability on acceptable terms of funds for capital expenditures,
- the availability in a cost-efficient manner of equipment and qualified personnel when required,
- the stability of the regulatory framework governing taxes and environmental matters in any jurisdiction in which the Company may conduct its business in the future,
- continuing strong demand for oil,
- the ability to market production of oil successfully to customers,
- future production levels and oil prices,
- the applicability of technologies for recovery and production of oil reserves,
- the existence and recoverability of any oil reserves,
- geological and engineering estimates in respect of resources and reserves in which the Company has an interest,
- the geography of the areas in which the Company has an interest, and
- the impact of increasing competition on the Company.
The actual results, performance and achievements of the Company could differ materially from those anticipated in these forward-looking statements as a result of the risks and uncertainties set forth elsewhere in the MD&A and the following risks and uncertainties:
- global financial conditions,
- general economic, market and business conditions,
- volatility in market prices, the stock market, foreign exchange and interest rates,
- risks inherent in oil and gas operations, exploration, development and production,
- the failure by counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties,
- risks related to the timing of completion of the Company's projects and plans,
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
- uncertainties associated with estimating oil and natural gas reserves and resources,
- competition for, among other things, capital, acquisitions of resources, and skilled personnel,
- the ability to hold existing leases through drilling or lease extensions or otherwise,
- incorrect assessments of the value of acquisitions,
- claims made in respect of the Company's properties or assets,
- geological, technical, drilling and processing problems, including the availability of equipment and access to properties,
- environmental risks and hazards,
- the inaccuracy of third parties' reviews, reports and projections,
- rising costs of labour and equipment,
the failure to engage or retain key personnel, - changes in income tax laws or changes in tax laws and incentive programs, and
- other factors discussed under “Principal Business Risks” in this MD&A.
Readers are cautioned that the foregoing lists of assumptions, risks and uncertainties are not exhaustive. Forward-looking information contained in this MD&A is expressly qualified by this cautionary statement. The forward-looking information speaks only as of the date of this MD&A, and the Company does not undertake any obligation to publicly update or revise any forward-looking information except as required by applicable securities laws.
KEY FINANCIAL RESULTS
The following table summarizes the Company's key financial results over the past three years:
| Annual Financial Results ($000s) | Year 2025 | Year 2024 | Year 2023 |
|---|---|---|---|
| Total revenue | 68,175 | 85,190 | 87,227 |
| Net loss | (10,795) | (636) | (10,987) |
| Net loss per share: | |||
| Basic | (0.05) | (0.00) | (0.05) |
| Diluted | (0.05) | (0.00) | (0.05) |
| Working capital (deficit) | 2,384 | (4,420) | 246 |
| Total assets | 125,791 | 156,644 | 165,067 |
| Total non-current liabilities | 24,991 | 39,006 | 45,976 |
The changes in year-over-year results are primarily the result of the reduced production and weaker commodity prices throughout 2025. Volatility in commodity prices has dampened the resulting operating income in 2024 and 2025, with overall net loss being impacted further by impairment losses in 2023, 2024 and 2025. However, reduced net financing expenses contributed to improved corporate results in each year.
SELECTED QUARTERLY INFORMATION
The following table sets out selected unaudited quarterly financial information of the Company and is derived from unaudited quarterly financial data prepared by management in accordance with IFRS.
| Quarterly Results ($000s) | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
| Oil and natural gas sales | 14,417 | 16,137 | 16,641 | 20,980 |
| Oil and natural gas sales, net of royalties | 12,150 | 13,165 | 14,083 | 17,502 |
| Net income (loss) | (10,329) | (2,199) | 3,278 | (1,545) |
| Net income (loss) per share: | ||||
| Basic | (0.05) | (0.01) | 0.01 | (0.01) |
| Diluted | (0.05) | (0.01) | 0.01 | (0.01) |
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
| Quarterly Results ($000s) | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| Oil and natural gas sales | 21,168 | 21,439 | 21,742 | 20,931 |
| Oil and natural gas sales, net of royalties | 17,597 | 17,685 | 17,960 | 16,976 |
| Net income (loss) | (5,146) | 10,040 | 82 | (5,612) |
| Net income (loss) per share: | ||||
| Basic | (0.02) | 0.05 | 0.00 | (0.03) |
| Diluted | (0.02) | 0.05 | 0.00 | (0.03) |
Over the past eight quarters, fluctuations in production volumes and realized commodity prices have impacted the Company's petroleum and natural gas revenues and funds flow. Net income (loss) has fluctuated due to effects of operating results from producing assets, changing financing costs, general and administrative expenses, and other non-cash items such as gains on acquisitions and dispositions as well as share-based compensation expense and gains/losses on risk management contracts, realized and unrealized. Capital expenditures and production volumes have fluctuated over time as a result of the timing of acquisitions and the impact of market conditions on the Company's development capital expenditures.
Declines in commodity prices also contributed to lower overall sales revenue in Q4 2025 in comparison to Q3 2025. Q2 and Q3 2025 both benefited from improved oil and NGL prices, on average, but continued decreases in natural gas prices and lower overall production resulted in decreased sales revenue in each respective quarter over Q1 2025. Improvements in mark-to-market valuation in Q2 2025 on existing risk management contracts when compared to Q1 2025 as well as a realized gains on liquidated risk management contracts in Q2 2025 were the primary factor leading to improved net operating results for Q2 2025. Q3 and Q4 2025 saw mark-to-market losses contributing to the overall net loss in each quarter.
The continued decline of commodity prices and decreased daily production contributed to the reduced revenue in 2025. Reduced finance expenses throughout 2025 due to the elimination of the Term Loan that carried a high interest cost softened the effects of reduced revenue on the quarter's and annual results. 2024's overall operating results benefited from higher production rates, higher overall commodity prices in the market, slightly offset by higher royalties per boe and higher operating expense per boe due to cyclical annual expenses incurred in Q3 2024 and ongoing effects on operating costs due to the absorption of production assets acquired prior to 2024. Non-cash items such as unrealized losses on the mark-to-market change in fair value of the oil and gas price hedges (in contrast to unrealized losses recorded in 2024) contributed significantly to the 2025 bottom line. 2024 saw record annual production levels reached which decreased significantly in 2025. In addition overall realized commodity pricing remained depressed throughout 2025.
CONVERSION MEASURES AND SHORT-TERM PRODUCTION RATES
Production volumes and reserves are commonly expressed on a boe basis whereby natural gas volumes are converted at the ratio of 6 thousand cubic feet to 1 barrel of oil. Although the intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants, boe's may be misleading, particularly if 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 equivalency at the wellhead. In recent years, the value ratio based on the price of crude oil as compared to natural gas has been significantly higher than the energy equivalency of 6:1 and utilizing a conversion of natural gas volumes on a 6:1 basis may be misleading as an indication of value.
Short-term production rates can be influenced by flush production effects from fracture stimulations in horizontal wellbores and may not be indicative of longer-term production performance or ultimate recovery of reserves. Individual well performance may vary.
For the three months and years ended December 31, 2025 and 2024
Management's Discussion & Analysis
ROK
RESOURCES
ABBREVIATIONS USED
| bbl | barrel | AECO | Alberta Energy Company |
|---|---|---|---|
| bbl/d | barrels per day | GJ | gigajoule |
| boe | barrels of oil equivalent | Mcf | thousand cubic feet |
| boe/d | barrels of oil equivalent per day | Mcf/d | thousand cubic feet per day |
| bopd | barrels of oil per day | MMBtu | million British thermal units |
| Mbbls | thousand barrels | MMcf | million cubic feet |
| Mboe | thousand barrels of oil equivalent | MMcf/d | million cubic feet per day |
| MMboe | million barrels of oil equivalent | Bcf | billion cubic feet |
| NGL | natural gas liquids | WTI | West Texas Intermediate |
| m³ | cubic metres | Cdn | Canadian |
| e³m³ | thousand cubic metres | US | United States |
| CO₂ | Carbon dioxide | GHG | Greenhouse gas |
| EOR | Enhanced oil recovery | CCUS | Carbon capture, utilization & storage |
| Mg/l | milligrams per liter | DCET | Drill, complete, equip & tie |
For the three months and years ended December 31, 2025 and 2024