Rubellite Surges on Record Production, Eyes Future with EOR Tech

CALGARY, AB – March 10, 2026 – Rubellite Energy Corp. today announced record-setting annual production and robust financial results for 2025, demonstrating significant growth and operational efficiency despite a volatile commodity market. The Calgary-based company surpassed its own guidance, grew its heavy oil output by nearly 50%, and made significant strides in strengthening its balance sheet, all while laying the groundwork for future value creation through advanced oil recovery technologies.

In a detailed year-end report, Rubellite revealed that its total average sales production soared by an impressive 97% in 2025, reaching a record 12,494 barrels of oil equivalent per day (boe/d). This growth was propelled by a highly successful drilling program in its core Eastern Alberta heavy oil assets.

Operational Excellence Fuels Financial Strength

Rubellite's operational momentum translated directly into a stronger financial position. The company's adjusted funds flow for 2025 jumped 52% to $142.1 million, a key metric indicating its ability to generate cash from its core business. This financial success was not just a product of higher volumes; it was also driven by a sharp focus on cost control. Rubellite reported a 20% year-over-year reduction in its cash costs on a per-barrel basis, bringing them down to $17.24/boe.

This combination of higher production and lower costs generated $11.6 million in positive free funds flow, which the company used to fortify its balance sheet. Net debt was reduced by 7% to $143.1 million by the end of 2025, a prudent move that enhances financial stability and provides flexibility for future investments. The company's 2025 capital program, which involved drilling 53 wells, was fully funded by its cash flow.

The engine of this growth was the company's heavy oil assets in the Clearwater and Mannville Stack formations, particularly at Figure Lake and Frog Lake. Annual heavy oil production hit a record 8,402 barrels per day, a 48% increase from 2024. New wells brought online in these areas consistently met or exceeded performance expectations, with some wells at Figure Lake showing initial production rates above the established type curves used for forecasting.

Navigating a Shifting Market

Rubellite’s performance is particularly noteworthy given the backdrop of a challenging and fluctuating energy price environment. While the company benefited from strong operational execution, its year-end reserves valuation reflects the broader market's uncertainty. The net present value of its total proved plus probable reserves (discounted at 10%) saw a 10% decrease to $651.5 million compared to the previous year.

According to the company's independent reserve evaluator, McDaniel and Associates, this decline was primarily driven by a reduction in consultant commodity price forecasts for future years. This highlights the sensitivity of long-term asset valuations to market sentiment, even when on-the-ground performance is strong. Varying forecasts from energy agencies and analysts for WTI crude, WCS heavy oil, and AECO natural gas prices in 2026 and beyond underscore the volatility that producers must navigate.

Despite these headwinds, Rubellite managed to replace 100% of its 2025 production with new reserves. This was achieved entirely through organic growth from its successful drilling program, a testament to the quality of its asset base and technical execution. The company’s ability to fund its ambitious growth plans from internal cash flow while simultaneously paying down debt signals a resilient business model built to withstand market cycles.

A Tale of Two Assets: Heavy Oil Shines

A deeper look into the reserves report reveals a nuanced story. The overall reserve replacement figures were impacted by a negative technical revision in the company’s natural gas assets at its East Edson joint venture. This revision contributed to what the company noted were “higher than normal cost of reserve additions” for the year on a corporate basis.

However, this was offset by significant positive developments in its core heavy oil properties. The drilling programs at Figure Lake and Frog Lake combined to add 6.1 million boe of proved plus probable reserves. Performance from new wells was so strong that McDaniel increased its type curve expectations for future wells in the Figure Lake area, a clear endorsement of the asset’s quality and Rubellite’s operational strategy. Furthermore, the company successfully added new reserves in secondary zones like the GP and Sparky formations, demonstrating the multi-layered potential of its land holdings.

This contrast underscores the strength and focus of Rubellite’s heavy oil strategy, which is delivering reliable growth and positive revisions that counterbalance challenges in other parts of its portfolio.

Beyond the Drill Bit: The Pivot to Enhanced Recovery

Looking ahead, Rubellite is not just focused on drilling new wells but also on maximizing recovery from its existing assets. The company is aggressively pursuing several Enhanced Oil Recovery (EOR) pilot projects, signaling a strategic pivot toward long-term, sustainable value creation. Capital spending in the first quarter of 2026 is being directed toward advancing these initiatives.

At Figure Lake, the company is testing multiple EOR schemes, including a waterflood pilot, a novel gas re-injection pilot, and a planned polymer flood pilot. Water injection began in a new pilot in early March, and the company is also converting two existing mature wells into water injectors to test the technology in areas that have already seen primary production. These EOR techniques are designed to increase the ultimate amount of oil recovered from a reservoir, extending the life of the fields and adding value beyond what primary drilling can achieve.

For the first quarter of 2026, Rubellite has guided for continued growth, with total production forecast to average between 13,300 and 13,400 boe/d. The company plans to spend $30 to $32 million on exploration and development, continuing its multi-well pad drilling at Figure Lake while funding its strategic EOR projects and other exploration activities. This balanced approach of exploiting near-term opportunities while investing in long-term technological solutions positions Rubellite to continue its growth trajectory.