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Saturn Oil & Gas Inc. Receives Additional ASCP Funding, Initiates Land Reclamation Program and Provides an Operational Update
Calgary, Alberta--(Newsfile Corp. - December 7, 2021) - Saturn Oil & Gas Inc. (TSXV: SOIL)...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Receives Additional ASCP Funding, Initiates Land Reclamation Program and Provides an Operational UpdateCalgary, Alberta--(Newsfile Corp. - December 7, 2021) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (\"Saturn\" or the \"Company\") is pleased to announce that the Company has been awarded an additional $2.1 million of Accelerated Site Closure Program (\"ASCP\") funding from the Saskatchewan provincial government. In total, Saturn has been awarded $13.6 million of ASCP funding. Land Reclamation ProgramAs part of Saturn's commitment to ESG leadership, the Company is prioritizing a Land Reclamation Program to remediate legacy inactive wells, including:$20 million budget over next three years to site remediation;400 wells and facilities to be remediated by year end 2024; and200+ well reclamations scheduled in 2022.The Land Reclamation Program is set to begin in December 2021 with expectations of abandoning approximately 15 wells by year end 2021. The ASCP funding allows the Land Reclamation Program to be executed through 2022 without requiring any cash flow from Saturn's operations, which is currently directed to growth projects and debt reduction. In addition, Saturn made a deposit in June 2021 to the Saskatchewan government of $21 million for future abandonment and reclamation obligations.In conjunction with its Land Reclamation Program, Saturn has been actively working-over and repairing inactive wells and has returned over 20 inactive wells back into production in 2021. The combination of Saturn's target for completing 400 additional reactivations and the 400 wells included in the Land Reclamation Program, is expected to reduce the Company's total inactive well count by over 50% in the next three years.Operational UpdateThe Company has completed the drilling of its first two wells at the Oxbow Asset in SE Saskatchewan: 1) a dual legged horizontal well with half-mile laterals and, 2) a single leg, half-mile horizontal well, all targeting the light oil bearing Frobisher formation. Good reservoir quality was encountered throughout the three lateral legs and the wells are expected to be put into production in the first week of December. The rig is currently moving to the third drilling location, a multi-well pad for the drilling of three Extended Reach Horizontal wells, each with one-mile lateral legs ...