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REGINA, SK / ACCESSWIRE / August 14, 2020 / ROK Resources Inc. (“ROK” or the “Company“) (TSXV: ROK) is pleased to announce that further to its previously announced closing of a financing consisting of units of the Company (each a “Unit“) at a price of $0.065 per Unit for total gross proceeds of $500,000.02 (the “Offering“), it has reconstituted the Board of Directors to include some of the strategic investors from the Offering. In addition, the Company announces that it has accepted the resignation of Chris Reid as a director of the Company to make room for such new director appointments. The Board of Directors of the Company thanks Mr. Reid for all of his efforts and wishes him well in his new endeavours. The new directors are Mr. Kent McDougall and Mr. Jeffrey Howard Chisholm.
Mr. McDougall has over 30 years of experience in oil and gas marketing and commercial arrangements within the oil and gas business. He brings a deep knowledge of energy marketing, logistics and financing to the Company. Mr. McDougall is currently an owner and Chief Commercial Officer of Torq Energy Logistics Ltd., a multi-product logistics and midstream company which owns midstream infrastructure and provides marketing and transportation to customers across Western Canada. From August 2011 to September 2014, he worked at Goldman Sachs as Vice President, Energy Sales. During his time there he was responsible for developing client risk mitigation strategies and providing structured derivative products to a broad customer base. From September 2007 to August 2011, he worked at Credit Suisse as Director, Fixed Income, Energy Trading and Marketing. As the head of the Canadian commodities desk, Mr. McDougall led all aspects of client interaction including risk management, natural gas storage trading and financing and physical/financial trading. From 1986 to 2007, Mr. McDougall held a variety of positions at primary producers, commercial trading companies and financial institutions where he specialized in oil, natural gas liquids and gas physical and financial trading/marketing. He received a B.Comm. from the University of Calgary, Haskayne School of Business, in 1986.
Mr. Chisholm is a geoscientist with over 30 years of International exploration and development experience with Pan Orient Energy, Orion Securities, Bow Valley Energy, Canadian Occidental Petroleum (Nexen), PanCanadian Petroleum (Encana) and Niko Resources. Mr. Chisholm has been President, CEO and Director of Pan Orient Energy Corp. since July 2005. Pan Orient is a Canadian publicly listed (TSX-V: POE) junior oil and natural gas company which has properties located on-shore Thailand and the Canadian oil sands. In addition to his experience managing a publicly traded oil and gas company, Mr. Chisholm brings extensive experience in international business development and new venture evaluation to the Company.
In addition, and as part of the resignation of Mr. Chris Reid discussed above, Mr. Reid has agreed to convert the existing severance amount owing to him from the Company in order to exercise his existing 920,000 stock options. As a result, the Company no longer has any obligations or liabilities owing to Mr. Reid pursuant to the termination of his employment as the Chief Executive Officer of the Company in November 2019. The Company is excited to have Mr. Reid continue to be a significant shareholder of the Company. Mr. Reid also purchased Units in the Offering to add to his already sizeable position in the Company (amounting to over 4% on an undiluted basis) and continues to believe in the long term prospects of the Company and its new management team.
The Company previously announced the acquisition of properties located within the Glen Ewen area of Southeast Saskatchewan, targeting the Midale and Frobisher formations. The Company has resumed production into the 9-23-2-1W2 battery complex and begun selective repair and workover operations on adjacent wells with the objective of increasing production and lowering operating costs. An operations update highlighting the results and future plans for the area will be released later in August upon completion of these initial field operations.
The management team is currently evaluating additional undercapitalized assets and several illiquid companies for opportunities to create additional high netback operating areas with potential for significant growth in production, reserves and free cash flow. The goal is to create profitable operating areas with significant reserve growth potential during this relative low point in the commodity cycle and give the investors a low cost option on future oil and gas pricing gains.
ROK Resources Inc. (previously Petrodorado Energy Ltd.) is currently engaged in the exploration and development of petroleum and natural gas in Southeast Saskatchewan. Its head office is located in Regina, Saskatchewan, Canada and ROK’s common shares are traded on the TSX Venture Exchange under the trading symbol “ROK”.
For further information, please contact:
Cameron Taylor, President and CEO
Lynn Chapman, VP Finance and CFO
Phone: (306) 522-0011
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company’s objectives, goals or future plans. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK’s public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
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