Rubellite Energy Corp. Reports Third Quarter 2025 Financial and Operating Results with Enhanced 2025 Guidance
Press Release
Calgary, Alberta – November 5, 2025 (TSX:RBY) – Rubellite Energy Corp. (“Rubellite” or the “Company”), is pleased to report its third quarter 2025 financial and operating results and provide an operations and guidance update.
Select financial and operational information is outlined below and should be read in conjunction with Rubellite’s unaudited condensed interim consolidated financial statements and related Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2025, which are 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 Measures” in this news release and in the MD&A for further information on the definition, calculation and reconciliation of these 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.
THIRD QUARTER 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Sales Production Volumes
⦁ Conventional heavy oil sales production averaged 8,338 bbl/d, a 40% increase from the third quarter of 2024 (Q3 2024 – 5,954 bbl/d).
⦁ Total sales production averaged 12,122 boe/d (71% heavy oil and natural gas liquids (“NGL”)), a 104% increase from the third quarter of 2024 (Q3 2024 – 5,954 boe/d (100% heavy oil)).
⦁ Rubellite brought 11 gross (9.0 net) heavy oil wells on production at Figure Lake and Frog Lake during the quarter.
⦁ The Company’s West Central 2025 drilling program commenced in July, adding 2 gross (1.0 net) liquids-rich conventional natural gas wells at East Edson to sales production late in the third quarter.
⦁ Natural gas sales through the Figure Lake gas plant, operational since January 23, 2025, averaged 2.9 MMcf/d and 4 bbl/d of associated NGL.
Capital Expenditures
⦁ Exploration and development capital expenditures(1) totaled $33.7 million to drill, complete, equip and tie-in 5 gross (5.0 net) multi-lateral horizontal development wells at Figure Lake, 7 gross (5.5 net) multi-lateral horizontal development wells at Frog Lake and 2 gross (1.0 net) liquids-rich conventional natural gas wells at East Edson.
⦁ Exploration and development spending in the third quarter included $1.5 million to expand the Figure Lake gas plant and gas gathering system, increasing capacity from 3.0 MMcf/d to 6.4 MMcf/d.
⦁ Land and other spending totaled $1.5 million and included $0.2 million for seismic purchases (Q3 2024 – $2.9 million). In addition to land purchases during the quarter, the Company sold undeveloped land for proceeds of $5.5 million which served to fund other capital activities and reduce net debt. Subsequent to the end of the third quarter, Rubellite closed the sale of additional undeveloped land for $2.3 million.
⦁ Decommissioning, abandonment and reclamation spending totalled $0.4 million during the third quarter of 2025 (Q3 2024 – $0.2 million). Financial Performance
⦁ Adjusted funds flow(1) was $35.7 million ($0.38 per share), up 55% (9% per share) from the third quarter of 2024 (Q3 2024 – $23.0 million or $0.35 per share).
⦁ Cash costs(1) were $18.6 million or $16.66/boe, down 33% on a per boe basis from the third quarter of 2024 (Q3 2024 – $13.5 million or $24.72/boe).
⦁ Net income for the quarter was $5.6 million ($0.06 per share) compared to $15.0 million net income ($0.23 per share) in the third quarter of 2024.
Balance Sheet and Liquidity
⦁ As at September 30, 2025, net debt(1) was $138.4 million, a 10% reduction from $154.0 million as at December 31, 2024, driven by $17.4 million of positive free funds flow(1) during the first nine months of 2025 combined with $5.5 million of proceeds from the sale of undeveloped land which was used to reduce net debt and other balance sheet obligations.
⦁ Rubellite had available liquidity(2) at September 30, 2025 of $48.0 million, comprised of the $140.0 million borrowing limit of Rubellite’s first lien credit facility, less current bank borrowings of $90.6 million and outstanding letters of credit of $1.4 million.
(1) Non-GAAP financial measure, non-GAAP ratio or supplementary financial measure. See “Non-GAAP and Other Financial Measures” in this news release.
(2) See “Liquidity, Capitalization and Financial Resources – Capital Management” in the Q3 2025 MD&A.
OPERATIONS UPDATE
Greater Figure Lake (Figure Lake and Edwand)
Heavy oil sales production from the Greater Figure Lake area averaged 5,110 bbl/d for the third quarter (Q2 2025 – 5,544 bbl/d). Additionally, gas sales contributed 2.9 MMcf/d plus associated natural gas liquids of 4 bbl/d which brought total sales production at Figure Lake for the third quarter to 5,601 boe/d (91% oil and liquids) (Q2 2025 – 6,064 bbl/d; 92% oil and liquids). Rubellite completed the expansion of the Figure Lake 1-13 Gas Plant to manage additional associated gas volumes in late August, establishing total throughput capacity of approximately 6.4 MMcf/d.
During the third quarter of 2025, Rubellite drilled and rig released 4 gross (4.0 net) development horizontal wells from the 9-35-63-18W4 pad (the “9-35 Pad”), all targeting the Wabiskaw Member of the Clearwater Formation, with 33 meter inter-leg spacing and 15,000m open hole length per the Figure Lake well design adopted in the latter half of 2024. Results from the 2025 development capital program to date across the Greater Figure Lake field continue to outperform expectations, with an average(1) IP30 of 259 bbl/d (9 wells) and IP60 of 239 bbl/d (8 wells), as compared to the McDaniel Tier 1 Type Curve(2) rates for 33 meter inter-leg spacing of 177 bbl/d (IP30) and 169 bbl/d(2) (IP60).
In addition to development drilling in the third quarter, 1 gross (1.0 net) step-out delineation well was drilled in the Edwand region with 50m inter-leg spacing and ~10,000m open hole length, to test and confirm productivity from a new pool in the Wabiskaw Member. The step-out well achieved an IP30 and IP60 of 48 bbl/d and 36 bbl/d, respectively.
Development drilling is continuing through the fourth quarter from the 9-35 Pad, including one waterflood pilot pattern consisting of a single horizontal multi-lateral well with two sets of four legs each (8 legs in total), with ~165 meters between the four-leg sets. Each 4-leg set will be drilled with 33 meter inter-leg spacing, and the waterflood producer well will have a planned total open hole length for the 8 legs of approximately 8,500 meters. A separate single leg water injection well will be drilled along the center line between the two 4-leg sets, and water injection is expected to commence in early 2026.
The Company advanced its novel natural gas-based re-injection pilot at Figure Lake for enhanced oil recovery, with an experimental well now configured at the 01-13-063-18W4 pad (the “1-13 Pad”), on the same site as the Figure Lake 1-13 Gas Plant. A total of ~25 MMcf of natural gas was injected into an existing open-hole multi-lateral well in order to confirm injectivity. Natural gas is being flowed back at controlled rates in advance of a second injection test, after which the well will be reconfigured for heavy oil production. Results from the waterflood pilot and natural gas-based re-injection experiment will inform future development patterns and enhanced oil recovery techniques to be implemented across the Greater Figure Lake area.
Rubellite also commenced testing larger diameter (200mm) boreholes at the 9-35 Pad to determine if incremental economic returns associated with improved inflow and productivity can be realized relative to the robust economics established for the existing 159mm boreholes drilled to date at Figure Lake. A total of 3 gross (3.0 net) wells with the 200mm borehole diameter will be drilled by year end.
A Sparky exploration well at Figure Lake is planned for the fourth quarter of 2025. If successful, there are approximately 15.0 net follow-up Sparky locations which would be incremental to the existing Clearwater development inventory.
During the third quarter, the Company was successful in acquiring 4.0 net sections of land. With the additional acreage, and adjusted to reflect both 2025 step-out and development drilling activity, Rubellite has an inventory of 260.2 net development locations(3) identified in the Wabiskaw, including 88.2 net proven and probable undeveloped(2)(3) booked locations. Under a one-rig program, which would provide for the drilling of 18 wells per year at Figure Lake, the Clearwater location count at Figure Lake represents ~14 years of low-risk development drilling inventory.
Frog Lake
Production at the Frog Lake property averaged 2,697 bbl/d (100% heavy oil) for the third quarter of 2025, a 6% increase from the second quarter of 2025 (Q2 2025 2,539 bbl/d).
During the third quarter, 1 gross (1.0 net) Waseca North well, 4 gross (3.0 net) Waseca South wells, and 2 gross (1.5 net) exploratory General Petroleum (“GP”) wells were drilled, for a total of 7 gross (5.5 net) wells.
Rubellite switched its drilling operations at Frog Lake in December 2024 to utilize OBM. The OBM trial at Frog Lake has confirmed the benefits of using OBM fluid consistent with Rubellite’s operations at Figure Lake, where the use of OBM has modestly reduced the cost of the mud system net of recovered OBM suitable for re-use and the sales credit for OBM that is not fit for re-use. Additional benefits include improved hole cleaning and stability, accelerated time to stabilized reservoir production, reduced drill pipe wear, and reduced water handling and disposal costs as compared to conventional water-based mud systems. The Company is continuing to utilize OBM in its ongoing drilling operations at Frog Lake as it evaluates the effects on long term production performance in different formations across the Frog Lake field.
Results thus far from the 2025 capital drilling program targeting the Waseca North sand at Frog Lake (13 gross (9.5 net) wells) have achieved an average(1) IP30 and IP60 of 133 bbl/d (13 wells) and 113 bbl/d (13 wells) respectively, as compared to the McDaniel Waseca North Type Curve(2) IP30 and IP60 of 107 bbl/d and 104 bbl/d established by McDaniel at year-end 2024 using historical data obtained from wells drilled with water-based mud systems.
2 gross (2.0 net) of the 4 gross (3.0 net) South Waseca sand wells drilled in the third quarter, have achieved an average IP30 of 159 bbl/d as compared to the McDaniel South Type Curve(2) of 150 bbl/d, while the remaining wells are either still recovering load fluid or are within the 30 day initial production period.
In addition to continued drilling of the Waseca sand as the primary development zone at Frog Lake, the Company drilled 2 gross (1.5 net) exploratory wells in the third quarter of 2025, targeting the GP sand. One gross (0.5 net) was drilled using a single leg lined horizontal lateral design and one gross (1.0 net) was drilled with a lined “fish bone” design. Both wells were equipped with recycle strings to aid in the flow of solids and sand from the horizontal section of the wells, have fully recovered drilling fluids, are continuing to clean up, and are selling oil. Production performance to date is promising with the “fish-bone” design recording an IP30 of 134 bbl/d gross and current production of 150 bbl/d gross (field estimate). The single lined lateral well is currently producing at 75 bbl/d gross (field estimate). Learnings from these two wells will confirm type curve assumptions, inform mapping parameters, geological cutoffs, and the future well design for optimum economic development of both the GP and Sparky sands in the Mannville Stack at Frog Lake.
The rig at Frog Lake will remain active and focused on the drilling of Waseca South, Sparky, and GP sands for the remainder of 2025. Marten Hills
The Company commenced a “bottoms up” waterflood pilot at Marten Hills during the second quarter of 2025, with water injection initiated at its first injection well in April. Value is expected to be realized through reduced water handling costs, reduced production declines and enhanced reserve recoveries.
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