Summary of quarterly report The first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the Company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90% year-over-year, which has provided the Company with the flexibility to allocate additional development capital across some of the most economic plays in North America. Given the significant delivering in the first half of the year, the Company will utilize a portion of its spare debt capacity but will continue to target a D:CF level of 0.5. ROK will focus the next 12-18 months on organic production growth and will continue to evaluate strategic, tuck-in acquisitions in core operating areas. Consistent with previous disclosure, the Company's capital program remains weighted to the second half of 2023, with a focus on Southeastern Saskatchewan light oil growth. The capital budget remains unchanged at approximately $30 million and the Company continues to target a 4,500 boepd exit rate at December 31, 2023.
In summary, the Company is pleased to provide the following guidance for the remainder of 2023:
- Capital budget unchanged at $30 million
- 9 to 11 gross drilling locations targeting highly economic, light oil plays in Southeast Saskatchewan
- Exit 2023 production target of 4,500 boepd
- Exit 2023 net debt of $16-$17 million, before inclusion of any mark-to-market fair value of hedges