- Saturn Oil & Gas (SOIL) has completed a strategic acquisition and announced a non-brokered private placement
- The company has acquired oil & gas assets in West-central Saskatchewan for a net cash purchase price of $7.9 million
- Saturn also announced a non-brokered private placement of units for aggregate gross proceeds of $2,190,000
- The company will issue a total of 730,000 units priced at $3.00 per unit
- The placement is expected to close on or about March 10, 2022
- Saturn Oil & Gas Inc., a Canadian energy company, opened trading at C$2.98 per share
Saturn Oil & Gas (SOIL) has completed a strategic acquisition and announced a non-brokered private placement for gross proceeds of $2,190,000.
The company has acquired oil & gas assets in West-central Saskatchewan for a net cash purchase price of $7.9 million. The assets consist of approximately 240 bbl/d of high netback light oil production.
“In addition to the superior netback oil production, the acquisition contributes numerous high quality drilling development wells and abundant exploration locations for Saturn’s long-term growth,” commented Justin Kaufmann, Senior Vice-President, Exploration.
“The acquisition puts Saturn in a better position to take advantage of the Viking asset during a period of high commodity prices while continuing to grow the Oxbow Asset with the drill bit.”
Saturn also announced a non-brokered private placement of units for aggregate gross proceeds of $2,190,000.
The company will issue a total of 730,000 units priced at $3.00 per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will be exercisable for one share at an exercise price of $4.00 for 36 months following the closing date.
“The proceeds of current equity financings will allow for a much-expanded capital expenditure budget for 2022 and allow the company to accelerate its production growth in the current high oil price environment,” stated John Jeffrey, CEO of Saturn.
“We expect that the incremental growth in the company’s cash flow will far exceed the dilution of the financings and will be to the long-term benefit of all shareholders.”
Net proceeds of the private placement will be used to expand capital expenditures, for working capital and general corporate purposes.
The placement is expected to close on or about March 10, 2022.
Saturn Oil & Gas Inc. is a Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil-weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities.
Saturn Oil & Gas Inc. (SOIL) opened trading at C$2.98 per share.