Business
Saturn Oil & Gas Inc. Announces Sale of Non-Core Deer Mountain Property
Calgary, Alberta--(Newsfile Corp. - April 1, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: ...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Sale of Non-Core Deer Mountain PropertyCalgary, Alberta--(Newsfile Corp. - April 1, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) (\"Saturn\" or the \"Company\") is pleased to announce the Company has entered into a definitive agreement with a private operator to sell its non-core Deer Mountain property in North Alberta (the \"Deer Mountain Block\") for cash of $27 million, less customary closing adjustments. The Deer Mountain Block had production of approximately 800 boe/d(1) (93% oil and NGLs) in March 2024, based on field estimates. The sale of the Deer Mountain Block is expected to close on or about May 1, 2024, subject to customary closing considerations.Saturn is streamlining its development portfolio to drive enhanced operational efficiencies and accelerate net debt(2) reduction, further strengthening Saturn's balance sheet. The sale of the Deer Mountain Block does not impact Saturn's 2024 development capital expenditure budget.\"The Deer Mountain Block did not meet our expected investment return threshold to develop with new drilling in either of Saturn's 2023 or 2024 capital budgets,\" commented Justin Kaufmann, Chief Development Officer. \"The Deer Mountain Block was acquired as part of the February 2023 acquisition of Ridgeback Resources Inc. for which Saturn paid approximately 1.7x the 12-month forecasted net operating income (\"NOI\") of the aggregate properties. The sale proceeds for the Deer Mountain Block are approximately 3.0x its forecasted 12-month NOI. Since the acquisition of the Deer Mountain Block, up to the expected closing date of its sale, Saturn estimates it will have received a total of $20 million of NOI from this property.\"The proceeds from the sale of the Deer Mountain Block will be used to reduce the Company's Net Debt(2).Revised Guidance  Guidance RangeFull Year2024 WTI oil price 2024 average(3) $US75 Annual Average Production(2)Boe/d26,000 - 27,000 Adjusted EBITDA(2), before derivatives$MM388 - 403 Adjusted EBITDA(2), net derivatives$MM346 - 362 Adjusted Funds Flow(2)$MM290 - 306 Adjusted Funds Flow Per Share(2)$/sh1.82 - 1.92 Development capital expenditures(2)$MM146 Decommissioning expenditures$MM12 Free Funds Flow(2)$MM134 - 150 Free Funds Flow Per Share(2)$/sh.0.85 - 0.94 F...