SASKATOON, SASKATCHEWAN–(Marketwired – Sept. 29, 2017) – Saturn Oil + Gas Inc. (“Saturn” or the “Company”) (TSX VENTURE:SMI)(FRANKFURT:SMK) is pleased to announce that on September 27th, 2017 the Company received its Corporate Reserves Estimation and Economic Evaluation form Deloitte LLP (“Deloitte”) for its Lucky Hills Viking assets and Flaxcombe Success heavy oil assets. Saturn is pleased to announce 307 thousand net barrels in proved plus probable reserves (“2P”), a before tax undiscounted net present value of C$6.98 million.
Recent Corporate Overview
- In early 2017, Saturn acquired 640 acres of Viking land in the Lucky Hills area and 3,200 gross acres of Success heavy oil land in the Flaxcombe area. These acquisitions were a reflection of new management and new board of directors transitioning the corporate strategy of the Company.
- Saturn’s technical team has identified targets for horizontal development at Lucky Hills, as well as a re-completion and a horizontal target at Flaxcombe. The Company re-completed its first well at Flaxcombe in late August 2017 and will be re-completing a second well in late September. Additionally, the Company will spud its first Viking horizontal well at Lucky Hills in early October.
- Saturn has closed C$2.0 million in convertible notes, with proceeds allocated to executing the above-mentioned re-completion and horizontal well over the next month.
Highlights of Saturn’s Corporate Reserves Evaluation
As a result of recent developments discussed above, Saturn engaged Deloitte as its independent qualified reserves evaluator, to perform a corporate reserves evaluation effective August 31th, 2017 on its Lucky Hills and Flaxcombe assets (the “Evaluations”).
Highlights of the Evaluations:
- Total proved reserves (“1P”) volumes of 129 thousand net barrels of oil.
- Total 2P reserves volumes of 307 thousand net barrels of oil.
- Total 1P reserves undiscounted at C$2.11 million using Deloitte June 30th, 2017 price deck and forecasted costs.
- Total 2P reserves undiscounted at C$6.98 million using Deloitte June 30th, 2017 price deck and forecasted costs.
- As per Figure 1 below, Saturn has booked three (3) locations on a 1P basis and booked six (6) locations on a 2P basis at Lucky Hills.
- As per Figure 2 below, Saturn has booked one (1) location on a 1P basis and booked two (2) locations on a 2P basis at Flaxcombe. The assigned 2P reserves are for one (1) horizontal well and one (1) recompletion. Additionally, the recent recompletion of 121/01-13 well is booked as proved developed and producing (“PDP”).
- Saturn has now booked 1P reserves and 2P reserves on its Lucky Hills and Flaxcombe assets. In addition to these bookings, management believes there is additional un-booked prospective Viking potential on portions of its Flaxcombe assets.
- Corporate Reserves Evaluation from Deloitte was prepared in accordance with the COGE Handbook. At yearend, the Company will provide updated reserves in the form of a NI 51-101.
- Saturn’s land with 1P & 2P reserves are held with Westcore Energy Ltd., a 50% working interest partner.
To view Figures 1 and 2 please click on the following link: http://media3.marketwire.com/docs/SMI0929.pdf
- The Reserve Report contemplates 8 undeveloped 1P drilling locations.
- The Reserve Report contemplates 9 undeveloped 2P drilling locations.
- All reserve volumes above are reported on a company net basis.
- Drilling and completions cost per location contemplated in the Evaluations range from C$750,000 to C$1,000,000.
- The Evaluations forecast 2P estimate ultimate recoverable volumes of 41,800 barrels oil per undeveloped Viking location at Lucky Hills and 94,300 barrel oil per undeveloped Success horizontal at Flaxcombe.
- See “Advisories and Forward-Looking Information” below for a discussion regarding the risks and the level and uncertainty associated with reserves Evaluations.
About Saturn Oil + Gas Inc.
Saturn Oil + Gas Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) is a public energy Company focused on the acquisition and development of undervalued, low risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. De-risked assets and calculated execution will allow Saturn to achieve growth in reserves & production through retained earnings. Saturn’s portfolio will become its key to growth and provide long-term stability to shareholders.
SATURN OIL + GAS INC.
John Jeffrey, MBA – CEO & Chairman
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.