Rubellite Energy Corp. released robust financial and operational results for the second quarter of 2025, marked by significant growth in heavy oil production and a notable improvement in cash flow. Conventional heavy oil production reached 8,637 barrels per day, up 4% from the previous quarter and 92% year-on-year. Total production stood at 12,425 barrels of oil equivalent per day, of which 72% came from heavy oil and natural gas liquids.
Investments and capital management
Exploration and development spending totalled $17.5mn in the second quarter of 2025, allocated to the drilling, completion, and tie-in of eleven new horizontal multi-lateral wells at Figure Lake and Frog Lake. An additional $0.5mn was dedicated to the Figure Lake gas conservation project and the expansion of the gas gathering network. Land investments and other expenditures reached $5.4mn.
Adjusted cash flow for the quarter amounted to $27.4mn, representing an increase of 81% compared to the same period in 2024. Cash costs, including operating, transportation, administrative and finance expenses, amounted to $15.2mn, reflecting a 19% decrease per barrel of oil equivalent. Net income totalled $11.8mn. As of June 30, 2025, Rubellite Energy Corp.’s net debt stood at $104.5mn, down 8% from the end of the previous year.
Operational developments at Figure Lake and Frog Lake
The Figure Lake area accounted for 5,544 barrels per day of heavy oil, with continued growth supported by new wells and the expansion of the gas processing plant. Drilling results delivered initial production rates above the benchmarks set by McDaniel & Associates Consultants Ltd. Two new delineation wells also confirmed the productivity of new reservoirs in the area.
At Frog Lake, production increased by 5% to reach 2,539 barrels per day. The use of oil-based mud (OBM) drilling fluids helped optimise yields and reduce maintenance costs, while validating new exploration targets in the General Petroleum formation.
Production outlook and financial discipline
For the second half of 2025, Rubellite plans to invest between $39.7mn and $47mn in its drilling and development programmes, bringing total 2025 investments to between $73.5mn and $80.8mn. The expected average annual production of heavy oil remains between 8,200 and 8,400 barrels per day, while total production, including natural gas and liquids, is set to reach between 12,200 and 12,400 barrels of oil equivalent per day.
Improvement in the wellhead price differential for heavy oil and the reduction of operating costs to $4.80-$5.35 per barrel of oil equivalent strengthen the company’s financial position. Rubellite continues to reduce its net debt and comply with regulatory obligations for abandonment and site restoration, with an annual spending target of around $1.25mn.
Rubellite Energy Corp. maintains a disciplined investment strategy focused on generating free cash flow and prudent portfolio management amid volatile oil prices.
