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Saturn Oil & Gas Inc. Announces Successful Drilling Results at Oxbow Asset and Increases 2022 Guidance
Calgary, Alberta--(Newsfile Corp. - May 16, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FS...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Successful Drilling Results at Oxbow Asset and Increases 2022 GuidanceCalgary, Alberta--(Newsfile Corp. - May 16, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (\"Saturn or the \"Company\") is pleased to provide follow-on results from its light oil development program for the Oxbow Asset and announces the board of directors of the Company (the \"Board\") has increased the capital expenditures budget for 2022, along with revising upward operational and financial guidance for the year.Oxbow Asset Drilling UpdateThe Company drilled 12 horizontal wells in Q4 2021 and Q1 2022, targeting the Frobisher and Tilston formations at the Oxbow Asset in Southeast Saskatchewan, where it achieved a 100% success rate and strong aggregate initial flow rates. Eight of these wells now have 30 days of production data available that has increased the Company's estimate of the average expected ultimate recovery of crude oil for these wells.One notable driver for the increased expected oil recovery was the post drilling operations performed for the Glen Ewen 102/14-26 well that was initially producing 5 bbl/d of crude oil with a 98% water cut. The water producing zone in the lateral leg was isolated and shut off increasing oil production to over 70 bbl/d for the subsequent 20 days. March 22, 2022 Update May 16, 2022 Update Change Number of Wells Evaluated 6 8 33% Average Initial Production over first 30 days (\"IP30\") 96.3 bbls/d 93.2 bbls/d -3% Combined Expected Ultimate Recovery (\"EUR\")(1) 250,000 436,800 75% EUR per well(1) 41,667 bbls 54,600 bbls 31% Implied Development Cost per Bbl(1) $23.00 $18.30 -20% Combined Rate of Return(2) >150% >250% Notes:(1) See non-GAAP Financial Measures and Ratios(2) Rate of Return is calculated using futures oil pricing at the time of analysis of March 22, 2022 and May 11, 2022, respectively.\"With more time to observe the first group of wells drilled and the completion of additional operational efficiency activities in the Oxbow Asset, we are seeing lower production declines. Subsequently, we are seeing the production profiles will be longer than first estimated,\" commented Justin Kaufmann, Senior Vice-President, Exploration. \"We forecast the first eight wells drilled in the Oxbow Asset will reach payout in August of 2022 which is consistent with our expectatio...