RE:TSX

Rock Energy Inc.

Rock Energy Inc. is a growth-oriented western Canadian energy producer that is focused on building a portfolio of oil and natural gas producing assets with predictable, sustainable cash flow. The company's current assets are located along the Alberta-Saskatchewan border near the towns of Kindersley and Kerrobert. During Q1/14, Rock produced an average of 4,899 boe/d.

Expert Comments:

David Ricciardi, Mackie Research Capital (3/20/15)
"In 2014 Rock Energy Inc. drilled a total of 75 wells. . .for an average success rate of 92%. Thus far in Q1/15, the company has successfully drilled three horizontal wells at Mantario and three horizontal Viking wells at Onward. . .polymer injection commenced at Mantario on Mar. 11, 2015. . .effective Apr. 1, 2015, Rock Energy will receive the Saskatchewan enhanced oil recovery royalty (EOR) treatment of 1% until project payout and 10% thereafter. . .Rock Energy will focus on spending the minimum amount of capital to ensure the maximum recovery, lowest decline and the receipt of the EOR royalty incentive at Mantario."

Ken Lin, Paradigm Capital (3/20/15)
"Rock Energy Corp.'s daily production averaged 5,328 boe/d in Q4/14 and 4,991 boe/d for 2014, versus our estimates of 5,350 boe/d and 5,000 boe/d. . .in Q4/14, Rock Energy generated $0.35 cash flow per fully-diluted share, in-line with our estimate of $0.37. . .in Q1/15, the company completed its enhanced oil recovery scheme at Mantario/Laporte and has begun polymer injection, which will result in lower royalty rates, higher recovery factors and lower decline rates. . .Rock Energy stands out among other companies in the junior universe for its financial flexibility, discounted valuation, and exposure to the Viking oil play."

Thomas Matthews, Alta Corp Capital (3/20/15)
"Rock Energy Corp.'s H1/15 capital expenditure program ensured successful completion of the water/polymer flood enhanced oil recovery scheme. Polymer injection began on Mar. 11, 2015, and Rock has received the approvals necessary to trigger the 1% royalty holiday effective Apr. 1, 2015. . .the activation of the polymer flood should provide investors with confidence that the capital spent in 2014 now activates the royalty holiday going forward."

Trevor Reynolds, Acumen Capital Research (3/20/15)
"Rock Energy Inc.'s Q4/14 results were generally in-line with our estimates: production for the quarter of 5,328 boe/d and cash flow of $14.8M ($0.35 per share). . .reserves increased 27% on a total Proven basis and 15% Proven and Probable; reserves quality improved year-over-year with 70% now in the total Proven category and 40% Proved developed producing. . .looking beyond the first quarter and into 2016, the company appears to be in a relatively strong position with a steady high netback production base at Mantario and drilling upside at Onward. We maintain a Buy recommendation and a target price of $5.00 per share."

Darrell Bishop, Haywood Securities (3/20/15)
"Rock Energy Inc.'s increase in reserves reflects continued delineation and development of the company's Onward Viking pool as well as infill drilling at Mantario: Proven reserves up by 27% year-over-year to 8.7 MMboe. . .and Proven and Probable reserves up 15% year-over-year to 12.5 MMboe. . .Rock commenced polymer injection at the Mantario pool on March 11. . .anticipates commencement of the enhanced oil recovery royalty incentive on April 1. . .we believe oil prices will be significantly stronger than the current strip in H2/15 (approximately $60/bbl) and that this will bring investors back to stories like Rock."

Chad Ellison, Dundee Capital Markets (3/20/15)
"Rock Energy Inc.'s Q4/14 production of 5,328 boe/d was in-line with our 5,350 boe/d. . .Proven reserves were up 27% and Proven and Probable reserves were up 15%. The company generated all-in finding, developing and acquiring costs of $28.89 for a 1.3x cash recycle ratio, much improved from the 0.7x in 2013. . .polymer injection at Mantario began March 11, with the associated royalty break set to kick in April 1. . .we continue to favor Rock, given its low declines, materially improving cost structure driven by reduced royalties beginning in Q2/15, clean balance sheet and significant torque to oil prices."

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Investing Highlights
 
Strong Balance Sheet
 
Low base production decline rate
 
Generating cash flow per sale of $1.25 at WTI $60 US/bbl
catalyst Calendar
Rock Energy Inc. Content