CALGARY, AB, Aug. 10, 2026 /CNW/ -- Rubellite Energy Corp. ("Rubellite" or the "Company"), is pleased to report its second quarter 2026 financial and operating results and provide an operations and 2026 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, 2026, 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.

QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS

Operational Highlights

   -- Total sales production: Despite very challenging spring weather 
      conditions, Rubellite averaged total sales production of 13,406 boe/d in 
      the second quarter of 2026 (67% heavy oil and natural gas liquids 
      ("NGL")), exceeding the top end of the quarterly guidance range of 13,300 
      to 13,400 boe/d. Relative to the 13,843 boe/d (66% heavy oil and NGL) 
      produced in the first quarter of 2026, the 3% decrease reflected natural 
      declines in the West Central area and lower heavy oil sales production. 
   -- Heavy oil sales production: Averaged 8,534 bbl/d in the second quarter of 
      2026, just outside of the quarterly guidance range of 8,550 to 8,650 
      bbl/d. Relative to the 8,641 bbl/d of sales production in the first 
      quarter of 2026, the 1% decrease reflected downtime related to the 
      challenging conditions in the field and the recess in drilling operations 
      at Frog Lake from February 9, 2026 to April 19, 2026 to allow the 
      drilling rig, which operated continuously for several years, to undergo 
      servicing and recertification. During the quarter, there were 9 (8.5 net) 
      heavy oil wells added to sales at Figure Lake and Frog Lake, with an 
      additional 9 (8.0 net) wells awaiting tie-ins, or recovery of drilling 
      fluids and not yet contributing to sales. 
   -- Exploration and development spending(1): Spent $41.0 million in the 
      second quarter, within the guided range of $39.0 to $41.0 million. Second 
      quarter spending included the drilling and completion of 9 (9.0 net) 
      primary open hole multi-lateral ("OHML") Clearwater development wells and 
      2 (2.0 net) polymer pilot producer-injector pair at Figure Lake; 1 (0.5 
      net) OHML Waseca South development well, 2 (1.5 net) OHML Waseca North 
      development wells and 2 (1.5 net) GP wells at Frog Lake. 
   -- Land and geological and geophysical spending: Spent $2.5 million on land 
      to capture acreage in core areas and for exploration prospects and $0.2 
      million on geological and geophysical activities related to special core 
      testing to inform enhanced oil recovery pilot work and various data 
      seismic purchases. 
   -- Asset swap: On June 30, 2026, Rubellite completed an asset swap 
      transaction that doubled the Company's working interest in its Marten 
      Hills Clearwater assets from 30% to 60%, in exchange for certain non-core 
      undeveloped lands at Dawson and cash consideration of $0.8 million. The 
      incremental 30% working interest represents approximately 191 bbl/d of 
      heavy oil sales production based on second quarter 2026 average rates, 
      which will be reflected in the Company's production volumes beginning in 
      the third quarter of 2026. 
   -- Abandonment and reclamation: Spent $0.1 million on decommissioning, 
      abandonment and reclamation activities and received three reclamation 
      certificates from the Alberta Energy Regulator ("AER") in the quarter, 
      bringing the total to four in 2026. 

Financial Highlights

   -- Adjusted funds flow(1): $35.2 million ($0.38 per share) in the second 
      quarter of 2026, an increase of 6% from $33.4 million ($0.36 per share) 
      in the first quarter of 2026. 
   -- Cash costs(1): $23.5 million or $19.29/boe in the second quarter of 2026, 
      representing a 24% increase on a per boe basis as compared to the first 
      quarter of 2026 (Q1 2026 - $19.4 million or $15.56/boe) driven by 
      increases in net operating costs and transportation costs due to poor 
      lease and road conditions at both Figure Lake and Frog Lake. 
   -- Net income: $34.1 million ($0.36 per share) in the second quarter of 2026 
      primarily driven by an unrealized gain on risk management contracts, 
      reflecting a change in the mark-to-market values of these contracts due 
      to the fluctuation of forward commodity prices. 
   -- Net debt(1): $158.1 million at June 30, 2026, an increase of 10% from 
      $143.1 million at December 31, 2025. During the first half of 2026, 
      Rubellite's capital expenditures, including land and other spending, of 
      $76.5 million exceeded adjusted funds flow of $68.6 million. In addition, 
      other obligations were settled, including a $3.8 million reduction of the 
      other provision, $0.5 million of decommissioning expenditures, $0.8 
      million of cash-settled share based compensation payments and $0.8 
      million of cash consideration for the asset swap transaction. 
   -- Available liquidity(2): During the second quarter, the borrowing limit 
      was increased to $160.0 million from $140.0 million. As at June 30, 2026, 
      available liquidity was $62.9 million, based on the increased $160.0 
      million first-lien credit facility borrowing limit, less $95.7 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 
      Measures" in this news release. 
(2)  See "Liquidity, Capitalization and Financial Resources 
      - Capital Management" in the MD&A. 
 

OPERATIONS UPDATE

Figure Lake

Primary Development Update:

In the second quarter, Rubellite drilled and rig released 9 (9.0 net) primary OHML development wells targeting the Wabiskaw Member of the Clearwater Formation:

   -- 4 (4.0 net) at the 12-28-62-18W4 surface pad (the "12-28 Pad") 
 
   -- 4 (4.0 net) at the 14-22-63-18W4 surface pad (the "14-22 Pad") 
 
   -- 1 (1.0 net) at the 8-26-61-16W4 surface pad (the "8-26 Pad") 

Production results for primary wells drilled to date in 2026 averaged(1) IP30/60 rates of 195 bbl/d (8 wells)/224 bbl/d (5 wells), as compared to the 2025 McDaniel Tier 1 type curve(2) of IP30/60 of 201/193 bbl/d(2) .

The well (1.0 net) targeting the Sparky Formation drilled in the fourth quarter of 2025 was brought back on production after spring breakup and continues to deliver at encouraging rates with an IP90 of 230 bbl/d. Continuous production from the initial well and further development of the Sparky discovery pool will require construction of a permanent all season access road. The Sparky pool is located in a Key Wildlife Area as designated by the province with restrictions on field activity in place from January 15(th) to April 30(th) . Due to very wet conditions and to lower total costs and to limit impacts to the environment, the permanent road and further development is now planned for the second half of 2027. In the interim, the 8-26-64-18W4 discovery well will continue to be produced to the extent possible using the current temporary access.

Enhanced Oil Recovery ("EOR") Update:

Water injection commenced in March at the first Figure Lake waterflood pilot producer-injector pair drilled in the fourth quarter of 2025 on the 9-35-63-18W4 Pad (the "9-35 Pad"). Early indications are encouraging with inclining production rates and other positive indicators of pressure maintenance observed. A more definitive confirmation of the pilot producer's response to injection support is expected in the fourth quarter of 2026.

The second and third EOR pilots at Figure Lake are both located at the 8-26 Pad, where 8-leg OHML producers are paired with dedicated injectors. The injection wells have initially been configured as producers for a short period to recover the oil-based mud used during drilling, and to create voidage in the reservoir for improved flood front conformance once converted for injection. It is expected that water injection will commence in both injectors in the third quarter of 2026, with polymer injection expected to follow in late 2026 in one of the two injectors.

In addition, two multi-lateral horizontal producer-to-injector conversions were advanced on two separate pads at Figure Lake. These producer-to-injector conversion pilots will evaluate the effectiveness of waterflood where primary-focused multi-lateral drilling development has already occurred.

Information from the multiple EOR pilot schemes is being continuously monitored and evaluated and will inform future development plans.

Frog Lake

Waseca Update - Open Hole Multi-lateral Horizontals: