CALGARY, Alberta, Jan. 09, 2020 (GLOBE NEWSWIRE) — Saturn Oil & Gas Inc. (“Saturn” or the “Company”) (TSX.V: SOIL) (FSE: SMK) today announced a strong production rate exiting 2019 as a result of its successful Q4 2019 capital program, and upcoming Q1 2020 drilling program.
Successful Q4 2019 Capital Program
During the last half of December, Saturn brought on production four (4.0 net) extended-reach horizontal (“ERH”) Viking light oil wells, which led to a strong 2019 exit rate. Based on field estimates, Saturn exited the year with production over 1,200 bbls/d, exceeding its previous 1,000 bbls/d forecast and contributing to a December monthly average of just under 800 bbls/d. During the execution of its Q4 2019 drilling program, Saturn continued to improve its capital efficiency and achieved average per well costs to drill, complete, equip and tie-in (“DCET”) of $970,000, over 5% lower than well costs originally budgeted by the Company.
“I am very pleased to share that Saturn exited 2019 with production of over 1,200 bbls/d, 20% higher than our previous projections while reducing per well DCET costs by more than 5%,” said John Jeffrey, CEO of Saturn. “We are excited to execute our Q1 2020 drilling program, which has been designed to expand on the positive results we achieved with our Q4 drilling, as we further develop and delineate our solid light oil-weighted asset base. We plan to continue acquiring assets in our region, increase their value through development and generate additional cash flow for further growth.”
Q1 2020 Drilling Program Outlook
Saturn is also pleased to announce its anticipated first quarter 2020 drilling program, which will include the DCET of four (4.0 net) ERH Viking light oil wells designed to build on the successful results realized by the Company in Q4 2019. The Q1 2020 program is budgeted at approximately $4.0 million and is expected to be fully funded with cash flow from operations generated by Saturn during the period. The Company anticipates the four well drilling program to commence in early-February, with all wells anticipated to be completed and brought on production by early March.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. (TSX.V: SOIL) (FSE: 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 and production through retained earnings. Saturn’s portfolio will become its key to growth and provide long-term stability to shareholders.