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Saturn Oil & Gas Inc. Announces Fully Funded 2022 Capital Program Which Underpins 15% Production Growth and Annual Guidance Highlighted by Organic Free Funds Flow that Supports 45% Reduction in Net Debt
Calgary, Alberta--(Newsfile Corp. - March 14, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Fully Funded 2022 Capital Program Which Underpins 15% Production Growth and Annual Guidance Highlighted by Organic Free Funds Flow that Supports 45% Reduction in Net DebtCalgary, Alberta--(Newsfile Corp. - March 14, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (\"Saturn\" or the \"Company\") is pleased to announce that the Company's Board of Directors has approved a 2022 capital expenditures budget totalling $50 million.\"As a result of the strategic acquisition and recently closed, upsized and oversubscribed equity issues, Saturn has increased its 2022 capital expenditure program,\" stated John Jeffrey, CEO of Saturn. \"Equally important, because of the debt consolidation, the Company is now permitted to give guidance to the expected financial impact of our upcoming growth-oriented capital budget which remains underpinned by substantial free funds flow that will also materially reduce outstanding indebtedness.\"2022 Capital Expenditure Program and Annual GuidanceSaturn's assets provide for a foundation of sustainability: base decline is low at less than 13%; production efficiencies are attractive at less than $15,000 per flowing barrel of oil; and high operating netbacks are more than $60/boe, at current oil prices. Furthermore, as Saturn owns extensive infrastructure and undeveloped land within its operational areas, the Company can direct over 85% of its capital expenditures towards growth projects, with the balance directed to facilities and undeveloped land. Company average production for Q4 2021 was 7,245 boe/d with 96% oil and NGL.Saturn remains dedicated to reducing its debt levels and expects to make $38.1 million in principal payments this year and to exit 2022 with a debt to 2022 EBITDA ratio of 0.5x. As a testament to Saturn's ESG commitment, it has allocated $13.3 million to abandonment and reclamation spending and other emission reduction capital projects, which are government funded under the Accelerated Site Closure Program.Saturn's 2022 Capital Expenditure Program is currently underway having contracted one drilling rig to be active throughout the year at the Oxbow Asset, excluding, breakup and maintenance periods. Over 85% of the 2022 drilling budget will be directed to the Oxbow Asset, with select drilling targets at the Viking Asset.A summary of budgeted field dev...