CALGARY, AB, Aug. 5, 2025 /CNW/ - (TSX: RBY) - Rubellite Energy Corp. ("Rubellite" or the "Company"), is pleased to report its second 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 consolidated interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three and six months ended June 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.

SECOND QUARTER 2025 HIGHLIGHTS

   -- Rubellite delivered record second quarter conventional heavy oil sales 
      production of 8,637 bbl/d that exceeded the high end of guidance and was 
      up 4% relative to the first quarter of 2025 (Q1 2025 - 8,339 bbl/d) and 
      92% relative to the second quarter of 2024 (Q2 2024 - 4,503 bbl/d). 
      Second quarter total sales production of 12,425 boe/d (72% heavy oil and 
      NGL) also exceeded the high end of guidance. Production growth quarter 
      over quarter was driven by the successful drilling programs at Figure 
      Lake and Frog Lake which brought eleven (10.0 net) new wells on 
      production during the second quarter of 2025. The Figure Lake gas plant 
      that commenced operations on January 23, 2025, added an average of 3.0 
      MMcf/d of solution gas sales plus associated liquids (17 boe/d) in the 
      second quarter of 2025. 
 
   -- Exploration and development capital expenditures(1) totaled $23.8 million 
      for the second quarter of 2025, to drill, complete, equip and tie-in five 
      (5.0 net) multi-lateral horizontal development wells at Figure Lake and 
      six (4.0 net) multi-lateral horizontal development wells at Frog Lake. 
      Included in second quarter development capital spending was $0.7 million 
      for the Figure Lake gas conservation project and the expansion of the gas 
      gathering system. 
 
   -- Land and other spending totaled $7.3 million in the second quarter of 
      2025 and included $0.5 million of spending on seismic purchases (Q2 2024 
      - nominal). An additional $0.1 million (Q2 2024 - nominal) was spent on 
      decommissioning, abandonment and reclamation activities. 
 
   -- Adjusted funds flow(1) in the second quarter of 2025 was $37.3 million 
      ($0.40 per share), up 81% (21% per share) from the second quarter of 2024 
      (Q2 2024 - $20.7 million or $0.33 per share). 
 
   -- Cash costs(1) were $20.7 million or $18.26/boe in the second quarter of 
      2025, down 19% on a per boe basis from the second quarter of 2024 (Q2 
      2024 - $9.3 million or $22.58/boe). 
 
   -- Net income was $16.1 million ($0.17 per share) in the second quarter of 
      2025 (Q2 2024 - $12.4 million net income and $0.20 per share). 
 
   -- As at June 30, 2025, net debt(1) was $142.4 million, down 8% with the 
      reduction of $11.7 million from $154.0 million as at December 31, 2024 
      driven by positive free funds flow(1) of $17.1 million in the first half 
      of 2025 which was used to reduce net debt and other balance sheet 
      obligations. 
 
   -- Rubellite had available liquidity(1) at June 30, 2025 of $32.4 million, 
      comprised of the $140.0 million borrowing limit of Rubellite's first lien 
      credit facility, less current bank borrowings of $106.2 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. 
 

OPERATIONS UPDATE

Greater Figure Lake (Figure Lake and Edwand)

Heavy oil sales production from the Greater Figure Lake area averaged 5,544 bbl/d for the second quarter as compared to 5,326 bbl/d for the first quarter of 2025, an increase of 4%. Solution gas sales contributed 3.0 MMcf/d plus associated natural gas liquids of 17 boe/d which brought total sales production at Figure Lake for the second quarter to 6,064 boe/d (92% oil and liquids). Rubellite is currently expanding the Figure Lake 1-13 Gas Plant to manage additional associated solution gas volumes and increase total throughput capacity to approximately 5.9 to 6.4 MMcf/d. Completion of the expansion is expected in August 2025.

During the second quarter of 2025, Rubellite drilled and rig released three (3.0 net) development horizontal wells in the Greater Figure Lake area, all targeting the Wabiskaw Member of the Clearwater Formation, with 33 meter inter-leg spacing and typical 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 have achieved an average(1) IP30 of 271 bbl/d (7 wells) and IP60 of 267 bbl/d (5 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, two (2.0 net) step-out delineation wells were drilled in the Greater Figure Lake area with 50m inter-leg spacing and 10,000m open hole length, to test and confirm productivity from two new pools in the Wabiskaw Member. The first well, 00/01-14-062-18W4 ("1-14 Well"), encountered the down dip limit of the first pool, yielding lower oil saturations and higher water cuts than averaged elsewhere in the field. The second well, 00/04-32-060-17W4 ("4-32 Well") has fully recovered load oil, and with early Initial Production (IP15) of 58 bbl/d is within the range of expected outcomes supporting further development of the pool in accordance with the geological model established for the field.

Rubellite is actively advancing several opportunities to increase the economic recovery factor for heavy oil at Figure Lake beyond the average anticipated primary recovery factor of approximately 4.0 to 5.5 percent of the original oil in place.

A waterflood pilot is currently planned for the fourth quarter of 2025 from a surface location at 9-35-63-18W4 (the "9-35 Pad"). The waterflood pilot pattern will consist of a single horizontal multi-lat well with two sets of four legs each (8 legs in total), with 150 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 10,000 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 is also advancing a 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. Results from the waterflood pilot and gas re-injection experiment will inform future development patterns and enhanced oil recovery techniques to be implemented across the Greater Figure Lake area.

Rubellite will also test larger diameter (200mm) boreholes at the 9-35 Pad in the third quarter of 2025 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.

3D seismic acquired in the first quarter of 2025, imaging the northern end of Figure Lake, has now been interpreted and a Sparky exploration well is planned to be drilled in the first quarter of 2026. Separate detailed mapping work has identified an Upper Clearwater prospect in the southern part of the greater Figure Lake area. If associated exploration wells are successful, there are approximately 15.0 net follow-up Sparky locations and up to 10.0 net follow-up Upper Clearwater locations, all of which would be incremental to the existing Clearwater development inventory and secondary targets inventory at Figure Lake.

Consistent production results continue to support the geologic model at Figure Lake and affirm the 243.0 net development drilling inventory locations(3) in the Wabiskaw, including 96.2 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 over 13 years of low-risk development drilling inventory.

Frog Lake

Production at the Frog Lake property grew 5% to average 2,539 bbl/d (100% heavy oil) for the second quarter, as compared to 2,423 bbl/d (100% heavy oil) for the first quarter of 2025.

Results from the 2025 capital drilling program to date at Frog Lake (all wells drilled using an oil-based mud ("OBM") drilling system and targeting the north Waseca sand) achieved an average(1) IP30 and IP60 of 140 bbl/d (9 wells) and 128 bbl/d (7 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.

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August 05, 2025 20:39 ET (00:39 GMT)