Saturn Oil & Gas Inc. has provided an operational update highlighting results from the Company's second-half 2019 drilling program, which exceeded expectations, as well as information regarding Saturn's participation in upcoming investor-focused European events and the issuance of stock options.
Viking Drilling Results
The Company is pleased to announce results from its second-half 2019 drilling program, with strong volumes achieved from four (4.0 net) extended-reach horizontal ("ERH") Viking light oil wells drilled in late August in the Prairiedale area, all completed and brought online in early September. The average per well cost to drill, complete, equip and tie-in was $980,000, 11% below the Company's budget expectations of $1.1 million per well. Combined, these four wells provided more than 450 barrels of oil per day (bbls/d) of incremental production during the month of September, enabling Saturn to achieve a peak production rate of 1,250 bbls/d and exit the month with production exceeding 1,000 bbls/d. Based on this production impact and factoring in natural declines associated with flush production, Saturn's current production volumes are estimated at 904 bbls/d, an increase of 630% compared to the same period in 2018. The Company elected not to complete the fifth well drilled in the program, which was plugged and abandoned.
"We are very pleased with the production profile of the new Viking wells, which were fully funded from operating cash flow and achieved costs 11% below our original budget," said John Jeffrey, CEO of Saturn. "These results reflect our team's excellent operational performance, which we achieved while maintaining our strong safety and environmental record. We look forward to showcasing all of Saturn's achievements to interested investors at three leading European events between now and the end of 2019."
Upcoming European Events
On November 8 and 9, 2019, the Saturn team will be available for meetings and presentations to institutional investors, private investors and industry representatives in Munich, Germany at the International Precious Metals & Raw Materials Fair, the biggest event of its kind within central Europe.
From November 25 to 27, 2019, John Jeffrey will undertake numerous one-on-one-meetings to introduce the Company to institutional investors, analysts and media representatives at the Deutsches Eigenkapitalforum hosted by Deutsche Börse AG in Frankfurt, Germany, one of the most important and significant capital market events in Europe.
Finally, on December 11 and 12, 2019, Saturn will participate in the 28th Munich Capital Market Conference (MKK) of GBC AG and present the story through one-on-one meetings with analysts and investors. This event is the largest investor conference in Southern Germany for small and mid-cap companies.
Saturn also announces that pursuant to the Company's Stock Option Plan (the "Plan"), it has granted to directors an aggregate total of 3,900,000 stock options at a price of $0.15 per common share. As per the Plan, the options granted are exercisable until October 15, 2024, and vest over a period of 18 months from the date of grant. Grant of the options are subject to the approval of the TSX Venture Exchange. All securities issued on exercise thereof are subject to a hold period expiring four months and one day from the date hereof.