Business
Saturn Oil & Gas Inc. Confirms 43.3 Million BOE of Reserves in New Oxbow Asset Evaluation and Announces New Director to the Board
Calgary, Alberta--(Newsfile Corp. - September 21, 2021) - Saturn Oil & Gas Inc. (TSXV: SOI...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Confirms 43.3 Million BOE of Reserves in New Oxbow Asset Evaluation and Announces New Director to the BoardCalgary, Alberta--(Newsfile Corp. - September 21, 2021) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMK) (\"Saturn\" or the \"Company\") is pleased to announce the completion of the final independent reserves evaluation of its newly acquired Oxbow Asset, effective April 1, 2021, in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and in accordance with the Canadian Oil and Gas Evaluation Handbook (the \"Oxbow Report\") as well as the appointment of Glenn Hamilton to the Saturn Board of Directors.Oxbow Reserves EvaluationThe Oxbow Report, prepared by Ryder Scott Company-Canada, evaluated assets in Southeast Saskatchewan (the \"Oxbow Asset\") that Saturn acquired in June 2021 for net cash consideration of $76.8 million, after closing adjustments. The net present value of net future revenues, (net of royalties, operating costs, and capital expenditures, including asset retirement obligations) before income tax, discounted at 10% (\"NPV 10%\") of the total proved plus probable reserves is estimated at $435.7 million, or $0.87 per outstanding share (basic).Oxbow reserves comprise 95% light and medium oil, and natural gas liquids;Total Proved Reserves make up 70% of the Total Proved plus Probable Reserves;Oxbow Report identified 242 booked drilling locations with certified reserves; andSaturn has identified an additional 100+ un-booked horizontal drilling locations on the Oxbow Asset.Summary of Gross Oil and Gas Reserves and Net Present Value of Revenue:Before Income Taxes as of April 1, 2021 - Forecast Prices and CostsReservesMMboeCash Acquisition Cost1$ / boeNPV 10%2($ million)NPV per BOE2$ / boeProved Developed Producing24.1$3.19$243.7$10.11Total Proved30.4$2.53$298.0$9.80Proved Plus Probable43.3$1.77$435.7$10.06 Cash Acquisition Cost calculated as cash consideration of acquisition divided by the reserves (boe) of the categoryOxbow Report used Ryder Scott Company price forecast effective March 31, 2021\"We are encouraged that the independently prepared Oxbow Report confirms Saturn's initial evaluation of the large reserves in place and long-life production of the Oxbow Asset,\" commented Justin Kaufmann, Senior Vice President Exploration. \"Saturn's f...