CALGARY, AB — September 8, 2026 — Leads & Copy — Rubellite Energy Corp. has sold its 50% non-operated working interest in the East Edson natural gas assets in West Central Alberta for $67.0 million. The transaction, which closed on September 8, 2026, was satisfied by the purchaser through the delivery of 2.083 million freely tradeable common shares of Topaz Energy Corp. (TSX: TPZ).
The sale of the East Edson Assets transitions Rubellite back to a pure play heavy oil company, sharpening its focus on the development of its Clearwater and Mannville stack assets. According to Sue Riddell Rose, President and CEO of Rubellite, the Topaz shares received as consideration provide immediate, highly liquid value and meaningful dividend income. This move preserves shareholder exposure to a potential natural gas price recovery through a diversified portfolio, rather than a single, non-operated deep basin asset.
The disposition is expected to materially strengthen Rubellite’s balance sheet, enhancing financial flexibility to accelerate organic growth plans, advance waterflood development, pursue consolidation opportunities in its core Clearwater and Mannville stack fairways, and explore other avenues for shareholder value growth.
Transaction highlights include the receipt of Topaz shares valued at a deemed price of $32.1588 per share. Rubellite retained the net operating income from the East Edson Assets through August 31, 2026, and will receive the September 2026 quarterly dividend on the Topaz shares, amounting to approximately $0.7 million. This sale increases the Company’s oil weighting to over 90% of production, up from approximately 70%, and is projected to improve the Company’s forecast 2027 operating netback by approximately 27%.
The transaction also establishes Rubellite in operatorship of greater than 98% of its production, enhancing control over field operations and capital allocation decisions. Approximately $12 to $15 million per year in forecast sustaining capital expenditures at East Edson will be eliminated, increasing forecast free funds flow over the company’s five-year plan at current strip prices. The Topaz shares are anticipated to generate approximately $2.9 million annually in dividend income while held.
Rubellite’s pro forma leverage ratio is reduced to approximately 0.7 times net debt to annualized adjusted funds flow, net of the market value of the Topaz shares. This strengthens the balance sheet and enhances liquidity and financial flexibility for future growth and acquisition opportunities.
Strategically, the disposition re-establishes Rubellite’s pure play heavy oil, multi-lateral horizontal development business plan in the Clearwater and Mannville stack plays. It increases financial flexibility and liquidity by making the value of the Topaz shares accessible for funding organic growth, waterflood advancement, future acquisitions, and other value-enhancing opportunities.
The company anticipates improved operating netback, free funds flow, and corporate production growth rate, positioning Rubellite for potential trading multiple expansion as a pure play heavy oil producer with a strengthened balance sheet and reduced risk profile. Rubellite’s natural gas price exposure shifts from a single, non-operated asset to a diversified portfolio managed through an equity position in a publicly traded corporation, preserving potential incremental value recovery while providing flexibility to align with its outlook for future commodity prices.
The East Edson Assets comprised Rubellite’s 50% non-operated working interest in approximately 29,000 net acres in the East Edson area of West Central Alberta, producing approximately 3,700 boe/d, with approximately 89% natural gas. Rubellite’s borrowing base under its first lien credit facility has been reconfirmed at $160 million.
Rubellite has updated its 2026 guidance to reflect the sale of the East Edson Assets and incremental capital spending for waterflood expansion at Marten Hills. Full year 2026 sales production is now forecast between 12,000 and 12,600 boe/d, with an increased oil and NGL production mix of 73%. Exploration and development spending is projected between $125 and $135 million.
Rubellite Energy Corp is a Canadian energy company headquartered in Calgary, Alberta, engaged in the exploration, development, production, and marketing of its asset portfolio, including heavy crude oil from the Clearwater and Mannville Stack Formations.
Source: Rubellite Energy Corp
