Saturn Oil & Gas Inc. Announces its First Development of Cardium Wells at Brazeau and Continued Successful Development in Southeast Saskatchewan
Saturn Oil & Gas Inc. announced its successful development in Central Alberta at the Brazeau field for Cardium light oil and natural gas, with initial production results of nine wells exceeding expectations. The company continued its positive development in Southeast Saskatchewan, surpassing type curve IP30 production rates. Total capital costs for drilling nine wells in Q1 2024 were below budget. Saturn plans to release its first quarter financial results soon.
Saturn Oil & Gas Inc. achieved successful initial production results for nine wells in Central Alberta's Brazeau field, surpassing expectations.
The Company continued its positive development in Southeast Saskatchewan, exceeding type curve IP30 production rates in the first quarter of 2024.
Total capital costs for drilling nine wells in Q1 2024 were approximately 5% below budgeted expenditures, indicating efficient cost management.
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Calgary, Alberta--(Newsfile Corp. - May 1, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) ("Saturn" or the "Company") is pleased to announce the initial production results for its most recently drilled nine gross (9.0 net) wells, including the Company's first development of the Brazeau field in Central Alberta for Cardium light oil and natural gas. In addition, Saturn continued its successful development of conventional horizontal wells in Southeast Saskatchewan, with outstanding average initial production rates.
The following table summarizes Saturn's Q1 2024 drilling results:
| Area of Development | Avg. IP30 per Location (boe/d) | Guidance Type Curve (boe/d) | Performance vs. Type Curve (%) | Avg. Capital Invested per Well ($MM) | Capital Efficiency ($ per boe/d) |
| SE Sask - Mississippian, Spearfish (5) | 105 | 79 | +33 | 1.18 | 11,240 |
| Central Alberta - Cardium (4) | 710 | 552 | +29 | 4.51 | 6,350 |
| Avg. Q1 2024 Wells (9) | 374 | 289 | +29 | 2.66 | 7,110 |
Total capital costs for drilling, completion, equip and tie-in of the nine wells brought onto production in Q1 2024 was
Central Alberta Drilling Update
During the first quarter the Company completed four gross (4.0 net) horizontal wells targeting Cardium light oil in the Brazeau area with an average initial 30-day ("IP30") average production per well of approximately 710 boe/d (
Southeast Saskatchewan Drilling Update
Saturn completed five gross (5.0 net) conventional horizontal wells with three Mississippian aged Frobisher and Tilston zone targets and two Spearfish zone targets in the first quarter of 2024, exceeding expected type curve IP30 average production rates by
Outlook
Saturn has followed up its success in previous years drilling in Southeast Saskatchewan to enhance its IP30 initial production rates and overall return on invested capital. Saturn has recently finished drilling one gross (1.0 net) Open Hole Multi-Lateral ("OHML") well in the Viewfield area of Southeast Saskatchewan with eight horizontal legs of up to two miles each. The OHML well is expected to be put onto production in May 2024.
Corporate production for April 2024, based on field estimates, is approximately 28,000 boe/d (
The Company plans to release its first quarter financial results on or about May 14, 2024. Saturn will host a webcast at 10:00 AM MDT (12:00 PM Noon EDT) on Wednesday, May 15, 2024, to review the first quarter 2024 financial results and provide additional colour on the Company's operational highlights.
Participants can access the live webcast via https://saturnoil.com/quarterly-results-webcast-registration/. A recorded archive of the webcast will be available afterwards on the Company's website.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Southeastern Saskatchewan, West Central Saskatchewan and Central Alberta that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn's goal is to increase reserves, production and cash flows at an attractive return on invested capital.
Saturn's shares are listed for trading on the TSX under ticker 'SOIL' on the Frankfurt Stock Exchange under symbol 'SMKA' and on the OTCQX under the ticker 'OILSF'.
Further information and a corporate presentation are available on Saturn's website at www.saturnoil.com.
Saturn Oil & Gas Investor & Media Contacts:
John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7900
www.saturnoil.com
Kevin Smith, MBA - VP Corporate Development
Tel: +1 (587) 392-7900
info@saturnoil.com
READER ADVISORY
BOE PRESENTATION
Boe means barrel of oil equivalent. All boe conversions in this news release are derived by converting gas to oil at the ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl: 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") under applicable securities legislation. Forward-looking statements typically contain words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "scheduled", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this press release may include, but is not limited to, the drilling of development wells and the business plan, timing of putting wells on production, the operational and capital guidance of the Company and the breakdown thereof, cost model and strategy of the Company.
The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn, including expectations and assumptions concerning: the timing of and success of future drilling, development and completion activities, type curve expectations, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, and the availability of capital, labour and services. In addition, assumptions have been made regarding and are implicit in, among other things, our capital expenditure and drilling programs, drilling inventory and booked locations, production and revenue guidance and future growth and development plans. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.
Although Saturn believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Saturn can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraints in the availability of services, commodity price and exchange rate fluctuations, actions of OPEC and OPEC+ members, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn's Annual Information Form for the year ended December 31, 2023.
All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207552
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