Rubellite Energy Corp. Reports Fourth Quarter 2025 Financial and Operating Results, 2025 Year-End Reserves, and Provides Operations Update and First Quarter 2026 Guidance
Press Release
Calgary, Alberta – March 10, 2026 (TSX:RBY) – Rubellite Energy Corp. (“Rubellite” or the “Company”), is pleased to report its fourth quarter 2025 financial and operating results and select information from the Company’s independent year-end 2025 reserve report, evaluated by McDaniel and Associates Consultants Ltd. (“McDaniel”) and provide an operations update and guidance for the first quarter of 2026. A copy of Rubellite’s audited financial statements, Management Discussion and Analysis (“MD&A”) and Annual Information Form (“AIF”) for the year ended December 31, 2025 will be available on the Company’s website at www.rubelliteenergy.com and SEDAR+ at www.sedarplus.ca.
This news release contains certain specified financial measures that are not recognized by GAAP and used by management to evaluate the performance of the Company and its business. Since certain specified financial measures may not have a standardized meaning, securities regulations require that specified financial measures are clearly defined, qualified and, where required, reconciled with their nearest GAAP measure. See “Non-GAAP and Other Financial and Reserves Measures” in this news release and in the MD&A for further information on the definition, calculation and reconciliation of these measures and certain reserves measures. This news release also contains forward-looking information. See “Forward-Looking Information”. Readers are also referred to the other information under the “Advisories” section in this news release for additional information.
FOURTH QUARTER AND ANNUAL 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Sales Production Volumes
⦁ Heavy oil: Averaged 8,295 bbl/d in the fourth quarter of 2025, up 7% from 7,754 bbl/d in the fourth quarter of 2024. Achieved record annual heavy oil sales production of 8,402 bbl/d, up 48% from 5,685 bbl/d in 2024 and above guidance of 8,325 to 8,400 bbl/d.
⦁ Total sales production: Delivered record fourth quarter average sales production of 13,042 boe/d (67% heavy oil and natural gas liquids (“NGL”)), up 26% from 10,386 boe/d (77% heavy oil and NGL) in the fourth quarter of 2024, and record annual sales production of 12,494 boe/d (70% heavy oil and NGL), up 97% from 6,349 boe/d (91% heavy oil and NGL) in 2024 and exceeding guidance of 12,325 to 12,400 boe/d.
⦁ Heavy oil new wells: Brought 14 (12.5 net) heavy oil wells onstream at Figure Lake and Frog Lake in the fourth quarter, for a total of 46 (39.0 net) new heavy oil wells contributing to sales in 2025.
⦁ West Central natural gas new wells: Added 2 (1.0 net) liquids-rich conventional natural gas wells to production at East Edson at the end of the third quarter and 2 (1.0 net) additional wells late in the fourth quarter of 2025.
⦁ Figure Lake gas plant: With the initial facility start up in January and subsequent expansion in the second half of 2025, natural gas sales averaged 5.6 MMcf/d in the fourth quarter and 3.4 MMcf/d in 2025.
⦁ Exploration and development spending(1): Spent $34.8 million in the fourth quarter and $114.6 million for 2025, at the high end of the guided range of $110.0 to $115.0 million. Fourth quarter spending included the drilling, completion, equipping and tie-in of 6 (6.0 net) multi-lateral horizontal Clearwater development wells and 1 (1.0 net) multi-lateral horizontal Sparky well at Figure Lake; 4 (3.0 net) multi-lateral horizontal Waseca development wells and 3 (2.5 net) single leg horizontal wells in new zones at Frog Lake; and 2 (1.0 net) liquids-rich conventional natural gas wells at East Edson, bringing total 2025 drilling activity to 53 (43.8 net) wells.
⦁ Figure Lake gas plant: Spent $0.7 million in the fourth quarter and $4.1 million in 2025 to finish initial construction and expand the gas plant and gas gathering system at Figure Lake, bringing processing capacity to 6.4 MMcf/d by the fourth quarter of 2025.
⦁ Land: Spent $0.3 million in the fourth quarter, bringing total land costs to $10.5 million in 2025. In the fourth quarter, the Company sold 7 sections of undeveloped land, subject to a retained gross overriding royalty, for $2.3 million, bringing total proceeds from the disposition of non-producing acreage in 2025 to $7.8 million, which funded other capital activities.
⦁ Geological and geophysical costs: Spent $3.8 million in the fourth quarter and $4.9 million in 2025 to shoot new 3D seismic and acquire trade data to support the development of the Clearwater and other Mannville Stack prospects, including the evaluation of new zones.
⦁ Abandonment and Reclamation: Spent $0.6 million in the fourth quarter and $1.9 million in 2025 on decommissioning, abandonment and reclamation activities and received seven reclamation certificates from the Alberta Energy Regulator (“AER”) (2024 – one), with two additional reclamation certificates received subsequent to year-end.
⦁ Adjusted funds flow(1):
⦁ $33.2 million ($0.35 per share) in the fourth quarter of 2025, up 5% from $31.6 million ($0.36 per share) in the fourth quarter of 2024.
⦁ $142.1 million ($1.52 per share) in 2025, up 52% (12% per share) from 2024 driven by a 97% increase in sales volumes and 20% lower cash costs, partially offset by a 10% decrease in average realized prices.
⦁ Cash costs(1):
⦁ $18.5 million or $15.41/boe in the fourth quarter of 2025, 21% lower on a per boe basis than the fourth quarter of 2024 (Q4 2024 – $18.6 million or $19.45/boe).
⦁ $78.6 million or $17.24/boe in 2025, 20% lower on a per boe basis than 2024 (2024 – $50.4 million or $21.68/boe).
⦁ Net income:
⦁ $9.7 million ($0.10 per share) in fourth quarter of 2025 (Q4 2024 – $26.7 million net income or $0.31 per share).
⦁ $32.6 million ($0.35 per share) in 2025 (2024 – $50.0 million or $0.73 per share).
⦁ Net debt(1): $143.1 million at December 31, 2025, down 7% from $154.0 million at December 31, 2024, driven by $11.6 million of positive free funds flow(1) used to reduce net debt and other obligations.
⦁ Available liquidity(2): $46.0 million at December 31, 2025, based on a $140.0 million first-lien credit facility borrowing limit, less $92.6 million of bank borrowings and $1.4 million in letters of credit.
(1) Non-GAAP financial measure, non-GAAP ratio or supplementary financial measure. See “Non-GAAP and Other Financial and Reserves Measures” in this news release.
(2) See “Liquidity, Capitalization and Financial Resources – Capital Management” in the MD&A.
2025 GUIDANCE RECONCILIATION
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