RUBELLITE ENERGY CORP. REPORTS FOURTH QUARTER 2024 FINANCIAL AND OPERATING RESULTS, YEAR-END 2024 RESERVES, PROVIDES OPERATIONS UPDATE AND FIRST QUARTER AND FULL YEAR 2025 GUIDANCE

Canada NewsWire

CALGARY, AB, March 10, 2025

CALGARY, AB, March 10, 2025 /CNW/ - (TSX: RBY) -- Rubellite Energy Corp. ("Rubellite" or the "Company"), is pleased to report its fourth quarter 2024 financial and operating results and select information from the Company's independent year-end 2024 reserve report, evaluated by McDaniel and Associates Consultants Ltd. ("McDaniel"), provides an operations update and provides first quarter and full year 2025 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, 2024 will be 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.

FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS

   -- On October 31, 2024, the Company, Rubellite Energy Inc., and Perpetual 
      Energy Inc. ("Perpetual") completed the previously announced 
      recombination transaction by way of an arrangement under Section 193 of 
      the Business Corporations Act (Alberta) (the "Recombination 
      Transaction")(1). In accordance with the Recombination Transaction, (i) 
      holders of common shares of Rubellite Energy Inc. received one (1) common 
      share of the Company for every one (1) common share of Rubellite Energy 
      Inc. held, (ii) holders of common shares of Perpetual received one (1) 
      common share of the Company for every five (5) Perpetual common shares 
      held, and (iii) Perpetual's outstanding senior notes ($26.2 million in 
      face value) were converted into 11.6 million common shares of the Company 
      at a conversion price of $2.25 per share. At closing, shareholders of 
      Rubellite Energy Inc. held 67.6 million shares (72.7%), Perpetual 
      shareholders held 13.7 million shares (14.8%) and holders of Perpetual 
      senior notes held the remaining 12.5% of the Company. 
 
   -- Rubellite delivered record fourth quarter conventional heavy oil sales 
      production of 7,754 bbl/d that exceeded guidance and was 30% higher than 
      the third quarter of 2024 (Q3 2024 - 5,954 bbl/d) and 84% above the 
      fourth quarter of 2023 (Q4 2023 - 4,209 bbl/d). Fourth quarter total 
      sales production of 10,386 boe/d (77% heavy oil and NGL) was up 74% and 
      147% from the third quarter of 2024 and fourth quarter of 2023. 
      Production growth relative to the third quarter of 2024 was driven by the 
      successful drilling program at Figure Lake, the full quarter impact of 
      the acquisition of Buffalo Mission Energy Corp. (the "BMEC Acquisition") 
      which closed on August 2, 2024, and two months of operations at East 
      Edson following the closing of the Recombination Transaction, which added 
      an average of 2,627 boe/d of sales volumes (14.1 MMcf/d of conventional 
      natural gas and 275 bbl/d of NGL). During the fourth quarter, there were 
      seventeen (14.25 net) wells brought on production from the heavy oil 
      drilling program at both Figure Lake and Frog Lake. 
 
   -- Rubellite delivered 2024 exit rate sales production for the month of 
      December of 12,027 boe/d (8,083 bbl/d heavy oil), exceeding previous 
      production guidance ranges of 11,300 to 11,800 boe/d of total sales 
      (7,500 to 7,900 bbl/d heavy oil). 
 
   -- Exploration and development capital expenditures(2) totaled $34.4 million 
      for the fourth quarter bringing expenditures to $101.7 million in 2024. 
      Fourth quarter spending included costs to drill, complete, equip and 
      tie-in nine (9.0 net) multi-lateral horizontal development / step-out 
      delineation wells at Figure Lake, five (3.0 net) multi-lateral horizontal 
      development wells at Frog Lake and one (1.0 net) exploratory horizontal 
      four-leg multi-lateral well at Calling Lake / Nixon. Included in fourth 
      quarter development capital spending was $1.8 million for the Figure Lake 
      gas conservation project, bringing total gas plant and pipeline 
      expenditures to $7.2 million in 2024. 
 
   -- Adjusted funds flow before transaction costs(2) in the fourth quarter was 
      $35.9 million ($0.41 per share) compared to the third quarter of $25.0 
      million or $0.37/share (Q4 2023 - $17.1 million or $0.27 per share). 
      Adjusted funds flow after transaction costs(2) for the three and twelve 
      months ended December 31, 2024 were $31.6 and $93.8 million (three and 
      twelve months ended December 31, 2024 - $16.9 and $54.2 million). 
 
   -- Cash costs(2) were $18.6 million or $19.45/boe in the fourth quarter of 
      2024 (Q3 2024 - $13.5 million or $24.72/boe; Q4 2023 - $7.9 million or 
      $20.49/boe). 
 
   -- Net income was $26.7 million in the fourth quarter of 2024 (Q4 2023 - 
      $9.5 million net income). 
 
   -- As at December 31, 2024, net debt(2) was $154.0 million, an increase from 
      $51.0 million as at December 31, 2023 as a result of the BMEC Acquisition 
      during the third quarter of 2024 and capital expenditures of $108.9 
      million in 2024 which exceeded adjusted funds flow of $93.8 million. The 
      Recombination Transaction did not have a material impact on net debt as 
      consideration was primarily from the issuance of Rubellite shares with 
      minimal net debt assumed. At December 31, 2024, net debt to Q4 2024 
      annualized adjusted funds flow before transaction costs(2) was 1.1 times. 
 
   -- Rubellite had available liquidity(2) at December 31, 2024 of $30.4 
      million, comprised of the $140.0 million borrowing limit of Rubellite's 
      first lien credit facility, less current bank borrowings of $108.5 
      million, outstanding letters of credit of $3.6 million offset by cash and 
      cash equivalents of $2.6 million. 
 
(1)  This news release contains certain information pertaining 
      to the Company before and after giving effect to the 
      Recombination Transaction. Any reference to information 
      prior to October 31, 2024 are references to Rubellite 
      Energy Inc. and any reference to information subsequent 
      to October 31, 2024 are references to the Company. 
      Accordingly, unless the context otherwise requires, 
      references to the Company subsequent to October 31, 
      2024 shall mean "Rubellite Energy Corp." and references 
      to the Corporation prior to October 31, 2024 shall 
      mean "Rubellite Energy Inc." 
(2)  Non-GAAP financial measure, non-GAAP ratio or supplementary 
      financial measure. See "Non-GAAP and Other Financial 
      Measures" in this news release. 
 
 

OPERATIONS UPDATE

In 2024, operational goals were focused on: (1) maximizing the Net Present Value ("NPV") of development locations at Figure Lake through advancements in well design; (2) de-risking the prospective location inventory at Figure Lake through confirmatory step-out drilling; (3) construction and commissioning of the solution gas gathering and natural gas sales infrastructure at Figure Lake; and (4) integration of the Frog Lake assets acquired through the BMEC Acquisition. Positive advancement of these objectives successfully converted the vast majority of Rubellite's 316 net heavy oil development locations(1) to high confidence locations, solidifying the foundation for Rubellite's longer term organic growth plan.

Operational goals for 2025 include: (1) advancement of enhanced oil recovery opportunities at Figure Lake; (2) ongoing improvement of well designs and development costs across the portfolio; and (3) testing and de-risking of secondary Mannville Stack sands at Frog Lake.

Greater Figure Lake (Figure Lake and Edwand)

Production from the Greater Figure Lake area averaged 5,228 bbl/d (100% heavy oil) in December 2024 and 4,953 bbl/d (100% heavy oil) for the fourth quarter.

In the fourth quarter of 2024, Rubellite operated two rigs to drill and rig release a total of nine (9.0 net) horizontal wells in the Greater Figure Lake area, all targeting the Clearwater formation, bringing the total number of wells drilled in the year to thirty-four (34.0 net) wells. Average results from the 2024 capital program across the Greater Figure Lake field continue to meet or exceed expectations, solidifying confidence in the geologic model and affirming the 243.0 net drilling inventory locations, including 65.6 net proven undeveloped and 30.6 probable undeveloped(1) identified. Under a one-rig program drilling 18 wells per year, the location count at Figure Lake represents over 13 years of economic inventory.

Well Design Pilot

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