Saturn Oil & Gas Announces 50.7 Million BOE of Reserves, a 668% Increase Year Over Year

Source: 4/12/2022, Location: North America

Saturn Oil & Gas Inc. is pleased to announce the results of the independent reserves evaluation of the Company’s crude oil and natural gas assets, dated March 23, 2022 and effective December 31, 2021, in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and in accordance with the Canadian Oil and Gas Evaluation Handbook (the “Reserve Report”).

Reserves Evaluation Highlights
The Reserve Report, prepared by Ryder Scott Company-Canada (“Ryder Scott”), evaluated the Company’s assets in Southeast Saskatchewan (the “Oxbow Asset”) and in West Central Saskatchewan (the “Viking Asset”) and is highlighted by:
• 50.7 million BOE of Total Proved + Probable (“TP+P”) reserves, representing a 668% year over year increase
• 351 booked drilling locations, 85% located in the Oxbow Asset
• High oil weighting, reserves comprise 96% light & medium oil and natural gas liquids (“NGL”)
• Long reserve life index (“RLI”) of 8.7 years Proved Developed Producing (“PDP”) and 19.2 years TP+P1
• Net asset value per fully diluted share:
-- Proved Developed Producing of $4.49
-- Total Proved of $6.76
-- Total Proved + Probable of $10.79

Summary of Gross Oil and Gas Reserves and Net Present Value of Revenue
The following tables are a summary of the Company’s estimated corporate reserves (Company share gross volumes) and net present values (“NPV”) of future net revenue, before tax, based on forecast price and costs as contained in the Reserve Report2. The Reserve report encompasses 100% of the Company’s oil and gas properties at December 31, 2021 and was prepared in accordance with NI 51-101 by Ryder Scott:

Net Asset Value
The following table sets out a calculation of NAV based on the estimated before-tax estimated net present value of future net revenue discounted at 10% ("NPV10 BT") associated with the PDP, TP and TP+P reserves, as evaluated in the Reserve Report, including deductions for future development costs, abandonment and reclamation obligations:

Reconciliation of Reserves
The following table provides a summary of the reconciliation of the changes in the Company’s gross reserves as at December 31, 2021 against reserves at December 31, 2020, based on forecast prices and costs assumptions in effect at the applicable reserve evaluation date:

Future Development Costs
The following table provides a summary of the estimated Future Development Costs (“FDC”) required to bring Saturn’s Total Proved and Total Proved + Probable undeveloped reserves to production, as reflected in the Reserve Report, which costs have been deducted in Ryder Scott’s estimation of future net revenue associated with such reserves:

Price Forecast
The following table summarizes the commodity price forecasts and foreign exchange rate assumptions of three consultant’s average forecasts1 as of January 1, 2022 as applied in the Reserve Report, for the next five years.

Year End Disclosures
The 2021 financial information in this news release is unaudited and accordingly, such financial information is subject to change based on the results of the Company's year-end audit, schedule to be released on April 28, 2022.

Additional reserve information as required under NI 51-101 will be included in the Company’s annual information form which will be filed on SEDAR on or before May 2, 2022.

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