Saturn Oil: A Rising Star in the Energy Sector

Saturn Oil & Gas Inc. (TSX: SOIL) (OTCQX: OILSF) (FSE: SMKA) has been making waves in the energy sector, with its strategic acquisitions and robust drilling programs driving record production and cash flow. The company's recent acquisition of Ridgeback Resources Inc. added approximately 13,000 boe/d of production, contributing to a 133% increase in average production volumes in the first quarter of 2023 compared to the same period in 2022. This acquisition, along with the South Saskatchewan assets, has positioned Saturn as a significant energy producer in Western Canada, with a strong foundation for future growth.



Saturn's acquisitions have not only boosted production but also enhanced its free funds flow. The company reported record quarterly adjusted funds flow of $67.0 million in Q2 2023, up from $14.5 million in the comparable 2022 period. This impressive growth is a testament to Saturn's strategic approach to acquisitions and its commitment to driving value for shareholders.



The company's drilling program has also played a crucial role in its success. Saturn invested $13.8 million in development capital expenditures in Q2 2023, drilling 7 (net 3.4) wells with a 100% success rate. This included 2 wells in Southeast Saskatchewan and 5 in West Central Saskatchewan, targeting light oil assets in some of the most economic plays in North America. The successful drilling program, coupled with the acquisitions, has driven Saturn's record quarterly average production of 25,988 boe/d, a significant increase from the previous year.



Saturn's acquisitions and drilling programs have not only driven production and cash flow growth but have also created synergies within the company. The Ridgeback acquisition, for example, added high-margin crude oil and liquids assets that fit well within Saturn's existing core asset base. This has set the foundation for strong future free funds flow generation.

As Saturn continues to execute on its growth strategy, investors should keep a close eye on this rising star in the energy sector. With its proven track record of acquisitions and successful drilling programs, Saturn is well-positioned to deliver robust production and cash flow growth in the coming years.