Business
Saturn Oil & Gas Inc. Announces Closing of Acquisition and Private Placement
Calgary, Alberta--(Newsfile Corp. - February 28, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Closing of Acquisition and Private PlacementCalgary, Alberta--(Newsfile Corp. - February 28, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (\"Saturn or the \"Company\") is pleased to announce it has successfully completed the previously announced strategic acquisition (the \"Strategic Acquisition\") and intends to complete a non-brokered private placement for gross proceeds of $2,190,000 (the \"Non-Brokered Private Placement\").Strategic AcquisitionThe Strategic Acquisition closed today, with an effective date of January 1, 2022, for a net cash purchase price of $7.9 million. The assets consist of approximately 240 bbl/d of high netback light oil production and has a strong synergistic fit, including:Located in Saturn's core Viking business unit;An excellent licensee liability rating (LLR) > 3.0;Reduces the Company's overall royalty rates and operating costs per boe; andEstimated 2022 operating netback on acquired production of $60.50/bbl2 for a PDP Recycle Ratio of 3.2x.1(1) Assuming US$75 WTI oil price for 2022\"In addition to the superior netback oil production, the Strategic Acquisition contributes numerous high quality drilling development wells and abundant exploration locations for Saturn's long-term growth,\" commented Justin Kaufmann, Senior Vice-President, Exploration. \"The Strategic Acquisition puts Saturn in a better position to take advantage of the Viking asset during a period of high commodity prices while continuing to grow the Oxbow Asset with the drill bit.\"Concurrent Non-Brokered Private PlacementConcurrent with its previously announced upsized bought deal prospectus financing, Saturn intends to complete a Non-Brokered Private Placement of units (\"Units\") by issuing an aggregate of 730,000 Units at a price of $3.00 per Unit for aggregate gross proceeds of $2,190,000. Each Unit will consist of one common share (a \"Share\") and one common share purchase warrant of the Company (a \"Warrant\"). Each Warrant will be exercisable to acquire one Share for 36 months following the Closing Date, at an exercise price of $4.00, subject to adjustment in certain events. The Company will make reasonable efforts to list the Warrants on the TSX Venture Exchange (\"TSXV\"). The Non-Brokered Private Placement will facilitate participation of strategic existing shareholders from...