Saturn Oil & Gas Inc. reports operating and financial developments as a Canadian light oil-weighted producer with operated assets in Saskatchewan and Alberta. Company news commonly covers production performance, adjusted funds flow, free funds flow, development capital budgets, drilling activity across multiple zones, and independent reserves evaluations prepared under Canadian oil and gas disclosure standards.
Saturn updates also address capital allocation, including debt repayment, share repurchases under its normal course issuer bid, and acquisitions intended to complement its existing asset base. Corporate news includes governance and structure matters, such as the completed vertical amalgamation of wholly owned subsidiaries into a single corporate entity, while trading references identify the shares on the TSX under SOIL and on the OTCQX under OILSF.
Saturn Oil & Gas announced the pricing of its US $650 million senior secured second lien notes due 2029, bearing an annual interest rate of 9.625%. The offering will close on June 14, 2024, subject to customary conditions. The company plans to use the proceeds to fund a portion of the cash purchase price of an acquisition in Southern Saskatchewan, repay existing debt, and for general corporate purposes. If the acquisition isn't completed by August 14, 2024, the proceeds will be subject to mandatory redemption. The notes are not registered under U.S. or Canadian securities laws and are offered only to qualified institutional buyers and certain non-U.S. persons.
Saturn Oil & Gas announced a proposed private offering of US$625 million in senior secured second lien notes due 2029. The proceeds will fund the acquisition of oil and gas properties from Veren Partnership, repay the company's senior secured term loan, and cover general corporate purposes. If the offering completes before the acquisition, the proceeds will be held in escrow. The notes are not registered under the Securities Act and will be sold to qualified institutional buyers and non-U.S. persons outside the United States.
Saturn Oil & Gas held its Annual General and Special Meeting on May 28, 2024, where 63.34% of total common shares were voted. All proposals were approved, including the election of eight directors and appointing KPMG LLP as auditor.
Key voting results include John Jeffrey with 94.59% approval, Ivan Bergerman with 65.26%, and Murray Payne with 96.11%. A special resolution to move the 's jurisdiction from Saskatchewan to Alberta was also approved with 94.94% in favor.
Saturn Oil & Gas Inc. has published its Q1 2024 financial and operational results, showing significant growth compared to Q1 2023. Their quarterly production averaged 26,394 boe/d, up from 17,783 boe/d last year. Adjusted EBITDA rose to $88.2 million from $69.9 million, while adjusted funds flow increased to $68.2 million from $54.5 million. Capital expenditures reached $34 million, drilling nine gross wells. Despite achieving these results, the company faced challenges such as severe cold weather and lower global oil prices, impacting revenues. Saturn also completed a $50 million equity financing and directed $76.1 million toward debt repayment, ending the quarter with $386.4 million in net debt. Additionally, Saturn announced the acquisition of oil-weighted assets in Southern Saskatchewan for $525 million, which will add 13,000 boe/d of production. This acquisition will be funded through debt commitments and a bought-deal financing.
Saturn Oil & Gas Inc. announced its successful development in Central Alberta at the Brazeau field for Cardium light oil and natural gas, with initial production results of nine wells exceeding expectations. The company continued its positive development in Southeast Saskatchewan, surpassing type curve IP30 production rates. Total capital costs for drilling nine wells in Q1 2024 were below budget. Saturn plans to release its first quarter financial results soon.
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