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Rubellite Energy Inc. Reports Fourth Quarter and Full Year 2023 Financial and Operating Results and Year-end 2023 Reserves and provides Operations Update and First Quarter and Full Year 2024 Guidance

Press Release

Calgary, Alberta – March 14, 2024 (TSX:RBY) – Rubellite Energy Inc. (“Rubellite”, or the “Company”), a pure play Clearwater oil exploration and development company, is pleased to report fourth quarter and full year 2023 financial and operating results, select information from the Company’s independent year-end 2023 reserve report, evaluated by McDaniel and Associates Consultants Ltd. (“McDaniel”), provides an operations update for the first quarter of 2024 and provides first quarter and full year 2024 guidance. A copy of Rubellite’s audited financial statements, Management’s Discussion and Analysis (“MD&A”) and Annual Information form for the year ended December 31, 2023 will be available on the Company’s website at and Sedar+ at

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.


  • Achieved fourth quarter conventional heavy crude oil sales production of 4,209 bbl/d, representing a 93% year-over-year increase and an 33% increase from Q3 2023, driven by positive drilling results and its previously announced asset acquisition completed in November 2023. 2023 sales production of 3,302 bbl/d exceeded guidance and increased 98% relative to 2022.
  • Generated adjusted funds flow(1) of $17.1 million ($0.27 per share) in the fourth quarter of 2023, an 82% increase over the comparative period, driven by production increases, and a 9% increase from Q3 2023 on higher production, partially offset by lower Western Canadian Select (“WCS”) pricing.
  • Posted strong Finding and Development (“F&D”) costs of $20.38/boe on a total proved plus probable producing and $18.03/boe on a total proved plus probable basis, with a recycle ratio of 2.6x and 2.9x, respectively, based on Rubellite’s 2023 operating netback.
  • Invested $25.1 million in development capital expenditures(1), excluding land purchases, to drill eleven (11.0 net) multi-lateral horizontal wells at Figure Lake, with eight (8.0 net) wells which progressively contributed to sales production during the fourth quarter. One (1.0 net) additional well at Figure Lake was spud on December 15, 2023 and was rig released on January 6, 2024 with a majority of the capital being spent during the fourth quarter of 2023.
  • Land purchases in the quarter were $1.2 million, bringing total land expenditures for 2023 to $4.0 million. In 2023, Rubellite added 28.0 net sections of land, and fulfilled its four well drilling commitment on the 20.0 net sections acquired under a Land Acquisition and Drilling Agreement with the Buffalo Lake Métis Settlement (“BLMS”). Including the 215 net sections of land acquired in the November 2023 asset acquisition and net of expiries, the Company held 471.1 net sections of land in the Clearwater formation at December 31, 2023.
  • Acquisition spending of $33.2 million, net of customary closing adjustments to acquire approximately 800 bbl/d of heavy crude oil production which contributed 436 bbl/d to fourth quarter 2023 production attributed to fifteen (15.0 net) wells, 107 net sections of Clearwater lands as well as 108 net sections of undeveloped lands in the Nixon area in the Northern Clearwater area.
  • Proceeds on disposition of $8.0 million related to the closing of a 1.5% non-convertible royalty sale which converts to a 1.0% royalty after payout.
  • Generated net income of $9.5 million ($0.15/share) in the fourth quarter of 2023.
  • Net debt(1) was $51.0 million at December 31, 2023, with a net debt to Q4 2023 annualized adjusted funds flow(1) ratio of 0.8 times.
  • Rubellite had available liquidity(1) at December 31, 2023 of $27.3 million, comprised of the then $57.0 million borrowing limit on the Credit Facility, less current borrowings of $29.3 million and outstanding letters of credit of $0.4 million.
  • Non-GAAP financial measure, non-GAAP ratio or supplementary financial measure. See “Non-GAAP and Other Financial Measures” in this news release.


A total of eleven (11.0 net) wells were rig released in Rubellite’s two-rig, fourth quarter development drilling program at Figure Lake and were a combination of seven (7.0 net) development wells and four (4.0 net) step-out wells. These wells began to contribute materially to the ramp up of oil sales production volumes throughout December, peaking in January 2024 as new multi-lateral wells from the two-rig Q4/23 drilling program were rig released and achieved full recovery of oil-based drilling mud (“OBM”). OBM is not recorded as sales production as the OBM is recovered and re-used in future drilling operations to the maximum extent possible or, when no longer re-usable it is sold, and in both cases credited back to drilling capital.

During the fourth quarter, development drilling operations were focused on three pads including: finishing the last two of eight wells on the pad at 15-24-63-18W4 (the “15-24 Pad”); drilling four (4.0 net) horizontal multi-lateral wells at a new development pad at 9-3-63-18W4 (the “9-3 Pad”); and drilling one (1.0 net) horizontal multi-lateral development well on a new development pad to the north at 14-22-63-18W4 (the “14-22 Pad”).

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