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Saturn Oil & Gas Inc. Announces Transformational Light Oil Asset Acquisition of 6,700 boe/d to Become One of the Leading Producers and Land Holders in Southeast Saskatchewan
  Saturn expects to be debt-free in 24 months based on production forecasts, capital bu...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Transformational Light Oil Asset Acquisition of 6,700 boe/d to Become One of the Leading Producers and Land Holders in Southeast Saskatchewan Saturn expects to be debt-free in 24 months based on production forecasts, capital budget, hedging levels and current forward pricing Mission is to continue to be an acquirer of accretive assets in Western CanadaAcquisition builds on Saturn's existing environmental, social and governance (\"ESG\") performance, while supplying responsibly-produced ethical Canadian crude oil to service global market demandCalgary, Alberta--(Newsfile Corp. - May 13, 2021) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMK) (\"Saturn\" or the \"Company\") is pleased to announce that it has entered into an arms-length definitive agreement to acquire assets in the Oxbow area of Southeast Saskatchewan (the \"Oxbow Assets\" or the \"Acquisition\") for approximately $93 million, funding for which is outlined below. Pursuant to the Acquisition, Saturn will acquire approximately 6,700 boe/d (~95% light oil and liquids)1 with over 450 net sections of land, largely positioned across one of the most economic oil plays in North America. The Acquisition enhances Saturn's financial and operational strength through the addition of a high-quality and very low decline (12%) light oil asset base that is projected to generate robust free cash flow at current prices. The Oxbow Assets produce primarily from the Frobisher and Midale formations and feature a sizeable inventory of targets for workover, development and optimization. The Oxbow Assets are expected to generate $65-70 million in net operating income over the next 12 months2.\"This Acquisition is in our 'backyard' in southeast Saskatchewan, furthering Saturn's strategy of building a scalable portfolio of free cash flow generating assets that offer attractive opportunities to allocate capital for both near and longer-term development, while increasing our exposure to some of Canada's most highly economic plays,\" said John Jeffrey, Chairman and CEO of Saturn. \"We believe the Oxbow assets - purchased from a very experienced oil operator - provide significant upside value with near-term recompletion and optimization opportunities, as well as long-term growth from a deep inventory of booked and un-booked drilling locations on the properti...