CALGARY, ALBERTA–(Marketwired – Jan. 11, 2016) – Spartan Energy Corp. (“Spartan” or the “Company”) (TSX:SPE) is pleased to announce that it has updated its corporate presentation, available on its website at www.spartanenergy.ca. Spartan is also pleased to advise that it will be presenting at the upcoming TD Securities London Energy Conference on Tuesday, January 12, 2016.
Spartan’s field estimated production in December 2015 was approximately 9,100 boe/d, with fourth quarter production of approximately 9,000 boe/d. Due to the outperformance of our wells, we were able to meet our 2015 annual and exit production guidance despite deferring a portion of our capital program due to the low commodity price environment. We have recently activated two drilling rigs in southeast Saskatchewan, where our open-hole wells continue to deliver economic returns at oil prices below US$35 WTI. Spartan has in excess of 500 net open-hole development drilling locations, which represents in excess of 13 years of inventory at our 2015 drilling pace.
Based on internal modelling, Spartan is positioned to maintain our 2015 annual average production in 2016 within cash flow at US$40 WTI while maintaining a debt to cash flow ratio of 1.6 times. Our light oil production base offers significant torque to rising oil prices, with each US$5.00 increase in WTI price resulting in approximately $15 million in incremental cash flow or potential 5% to 6% growth in production per share. Please consult our updated corporate presentation for more detailed well economics and oil price sensitivities. We intend to release formal 2016 guidance in late January, with a focus on spending within cash flow, protecting our strong financial position and seeking out acquisition opportunities created by the prolonged commodity price weakness.