Spartan Delta Corp. Announces Impressive 2024 Year-End Results and Reserves

Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) has reported its financial and operating results for the fourth quarter and year ended December 31, 2024, as well as highlights of the Company's year-end reserves evaluation. The Company's strategic shift towards the Duvernay region has significantly impacted its long-term production growth and cash flow generation.

Financial and Operating Highlights

Spartan reported production of 38,166 BOE/d (33% liquids) in 2024, with oil and gas sales of $301.6 million and Adjusted Funds Flow of $164.6 million ($0.93 per share, diluted), 3% higher than 2024 guidance. The Company successfully executed a capital program of $161.9 million in 2024.

In the West Shale Basin Duvernay, Spartan brought on-stream 3.4 net wells at an average IP30 rate of 1,132 BOE/d (87% liquids). In the Deep Basin, the Company continued to focus on the liquids-rich Cardium and Wilrich formations, drilling 14.0 net wells and completing and bringing on-stream 14.8 net wells.

Spartan achieved a 255% increase in crude oil production and a 16% increase in condensate production compared to the fourth quarter of 2023. Additionally, the Company achieved a 78% increase in crude oil production and a 21% increase in condensate production compared to the third quarter of 2024.

Fourth quarter 2024 oil and gas sales totaled $83.5 million, generating Adjusted Funds Flow of $50.5 million ($0.28 per share, diluted), an increase of 61% from the third quarter of 2024. Spartan generated Free Funds Flow of $2.7 million in 2024, $10.7 million in the fourth quarter, and exited 2024 with Net Debt of $148.1 million. The Company's Net Debt adjusted for the bought deal equity financing is approximately $50.3 million.

Reserves Evaluation

Spartan established a dominant position of greater than 250,000 net acres in the Duvernay, with Duvernay production exceeding 5,000 BOE/d (77% liquids) in December 2024. As a result of reduced capital in the Deep Basin and the reallocation to the more capital-intensive, albeit oilier Duvernay, proved developed producing reserves (PDP) decreased by a modest 1%, while total proved reserves (TP) increased by 7%, and total proved plus probable reserves (TPP) increased by 7% in 2024.

Oil and condensate PDP reserves increased by 33%, TP reserves increased by 69%, and TPP reserves increased by 51% in 2024. The increase in oil and condensate reserves reflects the Company's initial success in the Duvernay. The Company's before-tax net present value (NPV) reserves, discounted at 10 percent, increased across all categories.

Spartan's reallocation of capital from the Deep Basin to the Duvernay has significantly impacted its overall reserve base and production profile. The Company's focus on the Duvernay has resulted in a substantial increase in oil and condensate reserves, reflecting its initial success in the region. Spartan's strategic shift has enabled the Company to generate significant Free Funds Flow and maintain a strong balance sheet, positioning it for continued growth and success in the future.