CALGARY, Alberta, Jan. 09, 2020 (GLOBE NEWSWIRE) -- Saturn Oil & Gas Inc. (“Saturn” or the “Company”) (TSX.V: SOIL) (FSE: SMK) today announced a strong production rate exiting 2019 as a result of its successful Q4 2019 capital program, and upcoming Q1 2020 drilling program.
Successful Q4 2019 Capital Program
During the last half of December, Saturn brought on production four (4.0 net) extended-reach horizontal (“ERH”) Viking light oil wells, which led to a strong 2019 exit rate. Based on field estimates, Saturn exited the year with production over 1,200 bbls/d, exceeding its previous 1,000 bbls/d forecast and contributing to a December monthly average of just under 800 bbls/d. During the execution of its Q4 2019 drilling program, Saturn continued to improve its capital efficiency and achieved average per well costs to drill, complete, equip and tie-in (“DCET”) of $970,000, over 5% lower than well costs originally budgeted by the Company.
"I am very pleased to share that Saturn exited 2019 with production of over 1,200 bbls/d, 20% higher than our previous projections while reducing per well DCET costs by more than 5%," said John Jeffrey, CEO of Saturn. “We are excited to execute our Q1 2020 drilling program, which has been designed to expand on the positive results we achieved with our Q4 drilling, as we further develop and delineate our solid light oil-weighted asset base. We plan to continue acquiring assets in our region, increase their value through development and generate additional cash flow for further growth.”
Q1 2020 Drilling Program Outlook
Saturn is also pleased to announce its anticipated first quarter 2020 drilling program, which will include the DCET of four (4.0 net) ERH Viking light oil wells designed to build on the successful results realized by the Company in Q4 2019. The Q1 2020 program is budgeted at approximately $4.0 million and is expected to be fully funded with cash flow from operations generated by Saturn during the period. The Company anticipates the four well drilling program to commence in early-February, with all wells anticipated to be completed and brought on production by early March.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. (TSX.V: SOIL) (FSE: SMK) is a public energy Company focused on the acquisition and development of undervalued, low-risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. De-risked assets and calculated execution will allow Saturn to achieve growth in reserves and production through retained earnings. Saturn's portfolio will become its key to growth and provide long-term stability to shareholders.
Investor & Media Contact:
Saturn Oil & Gas
John Jeffrey, MBA - Chief Executive Officer & Chairman
Tel: +1 (587) 392-7902
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Forward-Looking Information and Statements
Certain statements contained in this release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this release includes, but is not limited to: expected cash flow provided by continuing operations; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Saturn disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The forward-looking information contained herein is expressly qualified by this cautionary statement.