Saturn Oil & Gas Inc. is pleased to announce the initial production results for its most recently drilled nine gross (9.0 net) wells, including the Company’s first development of the Brazeau field in Central Alberta for Cardium light oil and natural gas. In addition, Saturn continued its successful development of conventional horizontal wells in Southeast Saskatchewan, with outstanding average initial production rates.
Central Alberta Drilling Update
During the first quarter the Company completed four gross (4.0 net) horizontal wells targeting Cardium light oil in the Brazeau area with an average initial 30-day (“IP30”) average production per well of approximately 710 boe/d (50% light oil and NGLs), representing our best Cardium development wells to date. The standout well of the group was the Brazeau 100/03-17-045- 11W5 well, and is the Company’s best performing well drilled since inception, with an IP30 rate of 723 boe/d (50% light oil and NGLs). Saturn has 121 gross (101 net) de-risked additional booked and unbooked horizontal drilling locations in the Brazeau area of Central Alberta.
Southeast Saskatchewan Drilling Update
Saturn completed five gross (5.0 net) conventional horizontal wells with three Mississippian aged Frobisher and Tilston zone targets and two Spearfish zone targets in the first quarter of 2024, exceeding expected type curve IP30 average production rates by 33%. The highlight of the group was the Glen Ewen 101/03-01-004-02W2 (“Glen Ewen 03-01”) Frobisher well which had IP30 production of 195.6 boe/d, with 95% light oil, which de-risks up to three gross (3.0 net) new drilling locations in the area. In 2023 Saturn field shot, processed and interpreted its first proprietary 3D seismic data in Southeast Saskatchewan which helped identify the Weir Hill 103/14-18-006-04W2 (“Weir Hill 14-18”) location. Weir Hill 14-18 was drilled as a dual lateral well, had an IP30 rate of 154.4 bbl/d of 100% light oil, and its success yielded up to three gross (3.0 net) new development locations in the area. Saturn has 429 gross (381 net) additional booked and unbooked conventional drilling locations in Southeast Saskatchewan.
Outlook
Saturn has followed up its success in previous years drilling in Southeast Saskatchewan to enhance its IP30 initial production rates and overall return on invested capital. Saturn has recently finished drilling one gross (1.0 net) Open Hole Multi-Lateral (“OHML”) well in the Viewfield area of Southeast Saskatchewan with eight horizontal legs of up to two miles each. The OHML well is expected to be put onto production in May 2024.
Corporate production for April 2024, based on field estimates, is approximately 28,000 boe/d (77% light oil and NGLs).
The Company plans to release its first quarter financial results on or about May 14, 2024. Saturn will host a webcast at 10:00 AM MDT (12:00 PM Noon EDT) on Wednesday, May 15, 2024, to review the first quarter 2024 financial results and provide additional colour on the Company’s operational highlights.
Participants can access the live webcast via https://saturnoil.com/quarterly-results-webcast-registration/. A recorded
archive of the webcast will be available afterwards on the Company’s website.