A look inside ROK Resources’ dynamic diversification in oil, gas, and lithium
Headquartered in both Saskatchewan and Alberta, Canada, independent oil and gas company ROK Resources (TSXV:ROK) is focused on sustainable exploration and development in the Western Canadian Sedimentary Basin. Its diverse asset base in both Southeast Saskatchewan and Alberta is weighted to light crude with opportunities for natural gas development in the Kaybob area of Alberta. The management teams’ depth of expertise in multiple geological areas of conventional oil and gas, coupled with combined career histories that total decades in oil exploration and production, significantly enhance ROK’s operational success.
ROK’s strategy is guided by sustainability and responsible economic growth, aligning with its mission to maintain a diverse and ecological asset portfolio. Operating in an honest, safe, and conscious manner, the company places a strong emphasis on prioritizing its employees, Indigenous communities, shareholders, and other stakeholders.
Growth trajectory
Bryden Wright, President and Chief Operating Officer, provides an overview of ROK’s operations and history. “In 2018, myself, Cam Taylor and Jared Lukomski, who have been my business partners since 2006, founded ROK. Prior to that, we had successfully established and sold four private extraction and production (E&P) companies in Southeast Saskatchewan. In 2020, we made a significant stride by listing ROK on the TSX Venture Exchange. Following this strategic move, we have pursued a series of acquisitions and divestitures, enabling us to grow from zero to 4000 barrels of oil equivalent per day (Boepd). Among these barrels, 64 percent consist of light oil and natural gas liquids (NGLs), with the remaining 36 percent comprising natural gas. Today, we own assets in Saskatchewan and Alberta, and are primarily committed to light oil development in Southeast Saskatchewan,” he recounts.
In an increasingly diverse and competitive oil industry, ROK has honed its unique selling proposition to stand out from the crowd. “For nearly two decades, Cam, Jared and I have been working together in the basin, which has enabled us to build a strong network of trusted field employees, operators, and consultants. To facilitate our operations, the ROK head office is in Regina, Saskatchewan, less than three hours away from our core operating and growth areas. We further distinguish ourselves by being among a select few companies specializing in acquiring and merging smaller, family-owned or independent businesses, having successfully completed multiple transactions since our inception. Moreover, our track record of building and selling E&P companies is exceptional, and we aim to continue our growth trajectory towards an ultimate liquidity event within the next two-to-five years,” Bryden adds.
Prospective opportunities
Sustainable exploration is the epicenter of ROK’s business operations. Bryden offers insights into the organization’s ongoing exploration activities. “At present, we are concentrating our exploration efforts for new prospects across the Williston Basin, where we have built our expertise over the past 18 years. Additionally, we have a drilling program scheduled for the second half of 2024, within which we plan to include two light oil exploration prospects in Saskatchewan,” he informs.
Recently, ROK established a fruitful strategic partnership with EMP Metals Corp., which Bryden tells us more about. “A few years back, a local company started leasing lithium mineral rights in subsurface brine in Saskatchewan. Recognizing an opportunity in unleased lands close to our oilfield operations, we seized it by forming a partnership with EMP Metals to acquire lithium mineral rights and begin exploration. ROK holds a 25 percent stake in this joint venture, which is called Hub City Lithium, with EMP Metals owning the remaining 75 percent. ROK acts as the technical team through a management agreement.
“Over the past three years, Hub City Lithium has secured over 200,000 acres of prospective land and drilled and tested multiple vertical wells in the Duperow Formation, which has been confirmed to have the highest lithium brine concentration ever recorded in Canada at 259 milligrams per liter. Likewise, we have completed a preliminary economic assessment on our Viewfield Lithium Brine project through this partnership,” he enlightens.
Delving into the specifics of the Viewfield Lithium Brine project, Bryden lists the driving factors pushing ROK to undertake this endeavor and what it hopes to achieve. “As the world transitions towards electrification, we believe that lithium demand will continue to increase in the years to come. As a result, we seized the opportunity to acquire a high-quality, low-cost lithium resource in our current operating area, leveraging the decades of fluid-lifting experience that our team has accumulated. Moreover, large oil and gas companies, such as Equinor, ExxonMobil, and Occidental Petroleum, have recently made sizeable investments in the lithium sector. This trend further boosts our confidence in the lithium brine opportunity in Saskatchewan,” he states.
Feasibility studies
The company will remain busy for the remainder of 2024 with both lithium and oil and gas operations. Starting with lithium, Bryden declares, “We have just completed a three-month pilot project as part of a collaboration with Koch Technology Solutions, during which we tested its proprietary direct lithium extraction technology on-site. In the third quarter of 2024, Hub City Lithium will drill three wells, one of which is a one-mile horizontal well targeting the lithium-rich brine in the upper Duperow Formation. Following the drilling, we will test a high-concentration zone to gather pressure, flow rate, and concentration data that will be used in future reservoir modeling. Additionally, we are conducting a front-end engineering design study, which may be employed in a definitive feasibility study at a later stage.
Optimizing operations
“On the oil and gas front, our drilling program commenced in late May 2024, and we are planning to drill between six and eight wells throughout the remainder of the year. In addition, we have allocated funds for a series of well reactivations and optimizations. More specifically, this means that we will be installing casing compressors on several southeast Saskatchewan oil properties. So far, we have successfully completed around a dozen of these installations, and we are very happy with the resulting production increases,” he emphasizes.
When it comes to its supply network, ROK prioritizes several key factors to foster positive and long-standing working relationships, namely mutual respect, honesty and communication. As Bryden points out, “These qualities are no different than those most people seek in personal relationships. We firmly believe in being sincere and forthright with each of our vendors and service providers, and we expect the same level of integrity in return.”
Before concluding our conversation, Bryden lays out his vision for the business in five years’ time. “I could see us continuing to operate and expand our oil and gas business. Better yet, we might have sold our current venture and started another company similar to ROK within five years. Indeed, given our history, I doubt anyone would be surprised to see us running another company five years from now,” he ends.
By committing to environmentally responsible operations, forging strategic partnerships, and fostering a culture of innovation, ROK is well-positioned to further strengthen its expertise in conventional resources while supporting the communities in which it operates. With clear goals of sustainability and value creation, the company’s future looks promising.