CALGARY, AB – Spartan Delta Corp. (“Spartan” or the “Company“) (TSXV: SDE) is pleased to announce strategic asset acquisitions in the Gold Creek and Simonette areas. Total consideration for the acquisitions is approximately $10.1 million in cash, subject to certain closing adjustments. In addition, Spartan is also pleased to provide an update on the Company’s operations.
The acquired assets include 33,500 net acres of Montney rights, 100 net Montney locations, 300 BOE/d (51% crude oil, 5% NGLs, and 44% natural gas) of production behind pipe and associated 100% owned and operated facilities.
- 12,000 net acres contiguous with Spartan’s current land base in Gold Creek
- 40 net extended reach horizontals locations identified
- Two locations are expected to be drilled on the acquired lands in the second half of 2021 as part of Spartan’s four well program in Gold Creek
- Development will feed into Spartan’s existing 100% working interest gathering system and processing facilities
- 300 BOE/d (51% crude oil, 5% NGLs, and 44% natural gas) of production upon reactivation of shut-in wells that will flow into Spartan’s jointly owned Simonette 13-11 Gas Plant
- 21,500 net acres contiguous with Spartan’s current Montney land base in Simonette with potential for economic development drilling as early as 2022 upon success with redesigning the legacy completion design
- 60 net extended reach Montney horizontal locations identified
- 7,500 net acres of Duvernay rights, including one producing Duvernay horizontal
The acquisitions bring Spartan’s total position in the Alberta Montney fairway to 132,000 net acres, further establishing the Company’s competitive position in the Montney and allowing Spartan to utilize its existing infrastructure footprint to optimize operating margins and enhance capital efficiencies.
- Spartan’s winter drilling program continues to outperform; six of eight wells have achieved payout and corporate production is consistent at ~40,000 BOE/d (5% crude oil, 4% condensate, 21% NGLs and 70% natural gas)
- The first of Spartan’s nine well program in the West Central Deep Basin for the second half of the year commenced drilling last week
- Spartan also expects to spud the first of its four well program in the Gold Creek area of the Alberta Montney later this week
Further detail is available in Spartan’s June corporate presentation, which can be accessed on its website at www.spartandeltacorp.com.