Calgary, Alberta – Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (OTCQX: OILSF) (“Saturn” or the “Company“) is pleased to provide results from its 2022 capital expenditure program and operational highlights. The 2022 capital program totaled approximately $89.1 million with 80% of expenditures directed to horizontal drilling in Saturn’s two operational areas, the Oxbow Asset in Southeast Saskatchewan, and the Viking Asset in West-central Saskatchewan. The balance of capital expenditures was invested in facilities improvements, workover & optimization projects and acquiring land. Highlights of the 2022 capital program include:
- 57 gross (55.4 net) horizontal wells drilled which all have been placed into production of light oil for total capital expenditure of approximately $71.1 million, consisting of:
- 25 gross (24.4 net) wells were drilled in the Oxbow Asset, including five gross wells (4.7 net) that were re-drilled new horizontal legs of existing well bores, of which the final two wells were brought on production in December;
- 32 gross (31.0 net) wells were drilled in the Viking Asset with initial production for 30 days (IP30) averaging 93.7 bbl/d per well, which is approximately 38% above Saturn’s forecasted type curve for Viking wells, of which the final three well pad was completed and brought on production in January 2023; and
- Q4 2022 production is estimated at 12,514 boe/d, which is in line with guidance forecasted production announced with the Viking acquisition in May 2022, with December 2022 production estimated at 13,128 boe/d.
“2022 had the most active and impactful capital expenditure program in Saturn’s history. We are very pleased with overall results of the drilling program, outperforming our forecasted type curves and expanding our geological model to capture additional light oil resources for future development,” commented Justin Kaufmann, Saturn’s Chief Development Officer. “As we kick off the 2023 drilling campaign, we look forward to following up on our successes of 2022 and capitalizing on the lessons learned in developing Saturn’s rapidly expanded land base and drilling inventory.”
The following table summarizes Saturn’s 2022 drilling results:
|Gross Locations||Average IP30 per Location||Guidance Type Curve||Actual vs. Type Curve||Total Capital||Capital Efficiency|
|Oxbow New Horizontal Wells||20||63.3 bbls/d||69 bbls/d||-8%||$21.7M||$17,150/bbl/d|
|Viking New Horizontal Wells||32||93.7 bbls/d||68 bbls/d||+38%||$46.2M||$15,400/bbl/d|
|Oxbow Re-Drills||5||47.3 bbls/d||42 bbls/d||+12%||$3.2M||$13,330/bbl/d|
|Total/Average||57||79.0 bbls/d||66.1 bbls/d||+16%||$71.1M||$15,800/bbl/d|
Oxbow Operations Update
The 2022 drilling program in Southeast Saskatchewan was focused on developing existing light oil pools where Saturn has identified pool extensions and opportunities top enhance light oil recoveries. Drilling costs per Oxbow location averaged approximately $1.1 million which was in-line with initial budgeting from early 2022, despite a general increasing industry cost environment for materials and services. Production optimization efforts in 2022 resulted in the addition of 656 bbl/d of light oil production with an average cost of $4,237/bbl. The Oxbow drilling was highlighted with six wells that had IP30 production of over 100 bbl/d of light oil. The 2023 drilling program in Oxbow is currently underway with two wells now completed targeting Frobisher light oil, following up on successful wells drilled in 2022 in the Weirhill and Gainsborough areas.
Viking Operations Update
Saturn had particular success in developing light oil production at the Company’s Viking Asset with average IP30 production per new horizontal well at approximately 38% above forecasted type curves. Drilling costs per Viking location averaged approximately $1.4 million as a result of longer lateral lengths well designs, increased completion stages and increased completion costs. The combined 30 day average production of the 31 net wells drilled in the Viking Asset in 2022 amount to approximately 2,900 bbl/d of light oil production. Saturn closed on two acquisitions in the Viking Asset in 2022 including: the February Plato acquisition of 240 boe/d, and the July Viking acquisition of 4,000 boe/d. In aggregate, Saturn increased production 1,650% in the Viking Asset from approximately 294 boe/d in January 2022 to approximately 5,158 boe/d in December 2022. The 2023 drilling program in the Viking Asset is currently underway with the drilling of a three well pad offsetting strong performing wells drilled in 2022 in the Herschel area.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Southeastern Saskatchewan and West Central Saskatchewan that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn’s goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn’s shares are listed for trading on the TSX.V under ticker ‘SOIL’ on the Frankfurt Stock Exchange under symbol ‘SMKA’ and on the OTCQX under the ticker ‘OILSF’.
Further information and a corporate presentation is available on Saturn’s website at www.saturnoil.com.