Source: ROK Resources.
Market Herald logo

Find out more about this capital raise

Be the first with the news that moves the market
  • ROK (ROK) has secured a commitment for a C$75M credit facility with a Canadian chartered bank
  • The senior secured credit facility is in connection with ROK’s strategic asset acquisition in southeast Saskatchewan, announced on December 19, 2022
  • The company expects to realize savings of approximately 30 per cent in lower combined interest expenses
  • ROK explores for petroleum and natural gas in Saskatchewan and Alberta
  • ROK Resources (ROK) is up by 6.02 per cent, trading at $0.44 per share

ROK (ROK) has secured a commitment for a C$75M credit facility with a Canadian chartered bank.

The senior secured credit facility is in connection with ROK’s strategic asset acquisition in southeast Saskatchewan, announced on December 19, 2022.

The asset spans 48,720 acres of land, which contain over 65 booked drilling locations. It is currently producing ~1,500 boe/d and is expected to provide $10 to $12M of incremental annualized net operating income.

ROK will pay $26.5M and divest its non-core southwest Saskatchewan assets to the seller.

Besides the asset acquisition, ROK will use the funds to pay out its existing $42M debt facility held by Anvil Channel Energy Solutions.

The C$75M credit facility is comprised of:

  • A revolving credit facility of $22.5M with an expected initial interest rate of 8.15 per cent, contingent on the debt-to-cash flow
  • A non-revolving term loan of $52.5 million, amortized over no less than two years, with an interest rate of Canadian Bankers’ Acceptance Rate plus 6.25 per cent

ROK expects to realize savings of approximately 30 per cent in lower combined interest expenses.

The facility is subject to a definitive agreement and customary closing conditions, as well as the closing of the asset acquisition, which is planned on or before January 24, 2023.

ROK explores for petroleum and natural gas in Saskatchewan and Alberta.

ROK Resources (ROK) is up by 6.02 per cent, trading at $0.44 per share as of 11:56 am ET.


More From The Market Herald

" Centaurus Energy (TSXV:CTA) closes acquisition and transfers assets to Gasener

Centaurus Energy (CTA) has closed an agreement with Argentinian hydrocarbon trading company, Gasener SRL, to acquire Madalena Energy Argentina S.R.L.

" Saturn Oil & Gas shakes up Canadian oil patch with $525m acquisition

It may be early in 2023, but things are already heating up in Canada’s oil & gas industry.

" Braxia Scientific (CSE:BRAX) announces $1.9M financing transactions

Braxia Scientific Corp. (BRAX) announced an offering of units and concurrent private placement for gross proceeds of $1.9 million.

" CareRx (TSX:CRRX) closes bought deal offering and first tranche of concurrent private placement

CareRx Corporation (CRRX) has closed a bought deal offering and the first tranche of a private placement for gross proceeds of $12.1 million.