Project Highlights From Canada's Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. SOIL, a Saskatchewan-based light oil and gas producer, reportedly made big breakthroughs in 2021. 

The company has increased its oil and gas production by 4,750% in the past 18 months.  

Saturn made its first big move in June 2021 when it acquired the Oxbow Asset in Southeast Saskatchewan, including 290,000 acres of mineral rights and 6,400 boe/d of light oil weighted production. 

By Q4 2021 Saturn was in the field developing the new Oxbow Asset with an ambitious 12 well drilling program. Saturn drilled the top-performing well drilled in the province of Saskatchewan in Q4 2021, with an average production of 220 boe/d in the first 30 days.   

Most recently, Saturn has completed another blockbuster acquisition, this time in West-central Saskatchewan, the Viking Acquisition, which is adding 90,000 acres of mineral rights and 4,000 boe/d of light oil weighted production.  The company plans on closing the Viking Acquisition on July 6, 2022 which should bring pro forma production to approximately 11,400 boe/d, 97% oil and Natural Gas Liquids.  

Saturn joins heavyweights like Cenovus Energy Inc. CVE and Canadian Natural Resources CNQ through its emphasis on Canadian soil for oil and gas exploration. As a newcomer, it highlights its environmental, social and governance (ESG)-focused culture as a central differentiator.

Bites By Numbers:

Saturn Oil & Gas reports the following metrics and highlights for its project. 

• Saturn expects to become a top 10 oil producer in Saskatchewan with the expected close of the Viking Acquisition, July 6, 2022
• One of the lowest valuations in Canada's oil patch with a 2023 enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) multiple of approximately one times, according to Beacon Securities Limited
• Approximately 50% of future cash flows targeted for rapid debt repayment and 50% budgeted for growth development projects
• Production guidance for 15% annual organic growth and 69% reduction in net debt by year end of 2023

Earlier this month the company additionally announced closing a Bought Deal Offering worth $75 million and proposed $3 million Non-brokered Offering. Saturn says it intends to use the net proceeds of the Non-Brokered Offering to accelerate and expand capital expenditures in today's high oil price environment, for working capital and general corporate purposes.

• Of the 550+ wells drilled in Saskatchewan with over 500 hours of production data.

• Source: Beacon Securities Limited, “Equity Financing Closed; Target Bumped Up”, Buy Recommendation, 12 month target price $9.00, June 13, 2022.

• Based on Q4 2023 forecast production of 14,250 boe/d vs. Q4 2022 forecast production of 12,400 boe/d.

• Net debt pro forma the closing of the Viking Acquisition forecasted at approximately $223 million vs. forecasted 2023 year end net debt of approximately $75 million. 

For more on the Saturn project, click here. 

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Image provided by Saturn Oil & Gas Inc.