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Saturn Oil & Gas Inc. Announces Successful Drilling Results and AGM Voting
Calgary, Alberta--(Newsfile Corp. - September 19, 2022) - Saturn Oil & Gas Inc. (TSXV: SOI...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Successful Drilling Results and AGM VotingCalgary, Alberta--(Newsfile Corp. - September 19, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (\"Saturn\" or the \"Company\") is pleased to provide results to date from its 2022 drilling program, its new re-drill program to enhance production of existing low to non-producing horizontal wells, and the results of the annual general and special meeting of shareholders. The 2022 drilling program has been focused on Saturn's two operational areas, the Oxbow Asset in Southeast Saskatchewan, and the Viking Asset in West-central Saskatchewan, and includes:The first 23 horizontal wells drilled, adding incremental aggregate production of 1,615 bbls/d, based on initial 30 days of production (\"IP30\") data;An additional 16 horizontal wells, with less than 30 days of production data, have been drilled and recently put onto production, or are awaiting near term tie-in, for a total of 39 completed horizontal wells to date; andThe final 21 horizontal wells of the 2022 drilling program are expected to be completed by November 2022.Oxbow Drilling UpdateSaturn has completed drilling 16 Oxbow horizontal wells in 2022, with 15 wells having average IP30 production of approximately 71.2 bbls/d, which is in-line with Saturn's guidance type cure expectations. The average incurred capital cost of each Oxbow horizontal well has been within the budgeted $1.0 million per location. The implied capital efficiency of new production additions is at an attractive rate of approximately $14,230 /bbl/d. Saturn expects to drill an additional 10 Oxbow horizontal wells for the remainder of 2022 for a total of 26 new Oxbow wells for the year.Oxbow Re-Drill OpportunityThe Company has identified several existing horizontal wells at the Oxbow Asset, drilled in previous years, that have none or very little oil production, as candidates for re-drill operations. Re-drill operations involve entering an existing wellbore and drilling out a new horizontal leg into a prospective light oil formation, not previously accessed by the original drilling operation. With the cost savings of utilizing the vertical portion of an existing wellbore, a re-drill operation is expected to have approximately 60% of the costs of drilling a new horizontal well. Based on results to date, the four completed re-...