RUBELLITE ENERGY CORP. REPORTS FOURTH QUARTER 2025 FINANCIAL AND OPERATING RESULTS, 2025 YEAR-END RESERVES, AND PROVIDES OPERATIONS UPDATE AND FIRST QUARTER 2026 GUIDANCE

Key Takeaways:

• Record heavy oil production reached an annual average of 8,402 bbl/d in 2025.
• Overall production rose substantially to 12,494 boe/d, surpassing initial guidance.
• Capital spending of $114.6 million fueled drilling, facility expansions, and land acquisitions.
• Net debt decreased to $143.1 million, indicating a healthier balance sheet.
• First quarter 2026 guidance predicts continued growth, including production of up to 13,400 boe/d.

Production and Financial Highlights

Rubellite Energy Corp. reported strong results for both the fourth quarter and the entire 2025 fiscal year. Heavy oil production averaged 8,295 barrels per day (bbl/d) in Q4, marking a 7% increase from the previous year’s quarter, while annual heavy oil production rose to 8,402 bbl/d. This record-setting performance contributed to total annual sales averaging 12,494 barrels of oil equivalent per day (boe/d), surpassing the company’s initial guidance range of 12,325 to 12,400 boe/d.

Financially, Rubellite saw adjusted funds flow of $142.1 million in 2025. Net debt fell from $154.0 million at the end of 2024 to $143.1 million at the close of 2025, illustrating the company’s progress in debt management.

Capital Investment Successes

In 2025, Rubellite devoted $114.6 million to exploration and development, hitting the high end of its $110 million to $115 million target. This spending included the drilling of 53 (43.8 net) wells across multiple plays, expansions to a gas plant at Figure Lake, and strategic land and seismic acquisitions to identify future opportunities. Notably, the company also sold seven sections of undeveloped land with a retained royalty interest, using the $7.8 million in proceeds to fund further capital projects.

Operations Update and 2026 Guidance

Looking ahead, the company remains focused on enhanced recovery and production optimization. In the Frog Lake area, Rubellite tested single-leg and fishbone-style wells, while also experimenting with waterflood injection to improve productivity. At Figure Lake, both waterflood and natural gas injectivity pilots were initiated, with encouraging early results.

For the first quarter of 2026, Rubellite forecasts capital spending of $30 to $32 million, targeting continued improvements in well productivity and the development of new horizons like the Sparky and General Petroleum (GP) zones. It expects heavy oil production to remain robust, aiming for 8,300 to 8,400 bbl/d, while total company sales volumes could reach as high as 13,400 boe/d.

Year-End 2025 Reserves

Rubellite reported 53.1 million barrels of oil equivalent (MMboe) in total proved plus probable reserves as of December 31, 2025, marking steady resource growth. The company’s reserve evaluation, conducted by McDaniel and Associates, showed positive revisions in its heavy oil assets, including improved type curves for the Clearwater Formation. Rubellite’s net present value (discounted at 10%) for these reserves was estimated at $651.5 million, reflecting the substantial resource base supporting continued development.

Outlook

Rubellite intends to maintain its momentum by leveraging successful drilling strategies, low-cost operating initiatives, and ongoing pilot projects in waterflooding and gas injection. As the company enters 2026, the combination of record production, strategic capital allocation, and expanded reserves underlines its optimism for sustained growth, with the first quarter expected to reinforce Rubellite’s position as a key player in heavy oil and natural gas production.