Rock Energy Inc. Provides 2014 Operations Update and Revised 2015 Guidance

CALGARY, ALBERTA--(Marketwired - Jan. 26, 2015) - Rock Energy Inc. (TSX:RE) ("Rock") is pleased to provide a 2014 operations update and revised 2015 guidance. Rock is a Calgary-based crude oil exploration, development and production company.

OPERATIONS UPDATE

During the fourth quarter of 2014 the Company drilled a total of 27 (27.0 net) wells including 16 (16.0 net) Onward Viking Horizontal wells, 8 (8.0 net) Mantario wells, 1 (1.0 net) exploration well and 2 (2.0 net) dry and abandoned wells for an average success rate of 93%.

For the full year of 2014 the Company drilled a total of 75 (75.0 net) wells including 39 (39.0 net) Onward Viking Horizontal wells, 21 (21.0 net) Mantario wells, 7 (7.0 net) Mannville wells, 2 (2.0 net) exploration wells and 6 (6.0 net) dry and abandoned wells for an average success rate of 92%.

Production during the fourth quarter averaged approximately 5,350 boepd (97% oil), and for the full year production is expected to average approximately 5,000 boepd. Mantario production in the fourth quarter averaged over 3,500 boepd. Onward Viking production during the fourth quarter was over 900 boepd from 47 of the 53 wells drilled into the play. Currently the Company is producing over 5,350 boepd including over 1,200 bopd of light oil from the Viking at Onward.

During the fourth quarter, the Company also made significant progress in the completion of the battery and injection facilities at the Mantario EOR project, and shot a 33 section 3D seismic program over our lands in the Onward area.

UPDATED GUIDANCE

On November 5, 2014 Rock provided initial guidance for 2015 which included a capital spending program of $90 million generating average production of 5,400 boepd, assuming WTI would average $81.25 US/bbl for the year. Given the current level of crude oil prices, Rock has reduced its capital spending in 2015 to $25 million.

Strategically, Rock's 2015 business plan is directed at activities that confirm proof of concept, capture new opportunities and preserve our existing inventory. This disciplined approach is targeted to maintain a financially strong organization with a long term view to value creation. No further capital is planned to be spent on development drilling until commodity prices improve.

Rock is focused on spending the minimum amount of capital to complete the essential projects related to the Mantario EOR scheme so that reservoir pressure can be maintained and the polymer injection can begin. This will ensure the maximum recovery factor, lowest decline rate, and the receipt of the EOR royalty incentive. It is expected that the polymer injection will begin in March of 2015. Drilling of the Viking wells at Onward and the exploration wells have been deferred. At the present time Rock has no drilling rigs operating.