- Saturn Oil & Gas Inc. (SOIL) has provided an update regarding its recent drill work at the Oxbow and Viking projects, and annual general meeting results
- At Oxbox, 15 wells have been completed with an average initial 30-day production of approximately 71.2 barrels per day
- The implied capital gain is around $14,230 worth of barrels per day at 10 more will be drilled this year
- 21 Viking wells have been drilled since June, the first four of which have an average production rate that is 21 per cent higher than expected
- Saturn also announced the results of voting for new directors
- Saturn Oil & Gas Inc. (SOIL) is up 1.16 per cent, trading at $2.62 per share as of 2:04 p.m. ET
Saturn Oil & Gas (SOIL) has provided an update regarding its recent drill work at the Oxbow and Viking projects and AGM results.
Saturn stated it has completed drilling horizontal wells at Oxbox, with 15 wells with an average initial 30-day production of approximately 71.2 barrels per day. The average capital cost of each well has been within the budgeted $1 million per location.
The implied capital gain is around $14,230 worth of barrels per day. Saturn expects to drill an additional 10 Oxbow horizontal wells for the rest of this year.
The company has identified existing horizontal wells at the Oxbow asset as candidates for re-drill operations. Re-drill operations involve entering an existing wellbore and drilling out a new horizontal leg into a prospective light oil formation not previously accessed by the original drilling operation.
Additionally, Saturn shared it continues to have great success with its Viking horizontal drill program, having drilled and completed 21 Viking wells since June. The initial four wells have an average initial 30-day production rate that is 21 per cent above Saturn’s expectations. The average capital cost per Viking location was $1.4 million.
The capital cost and initial 30-day production rates were higher than projected due to extending the wellbores leading to additional completion costs. The realized average capital gain was valued at $17,045 worth of barrels per day. The company plans to drill nine more Viking wells this year.
Saturn also announced the results of voting for new directors at its annual meeting of shareholders. Winning nominees include John Jeffrey, Ivan Bergerman, Murray James Payne, Chris Ryan, Grant Mackenzie, and Thomas Gutschalg.
Saturn Oil & Gas Inc. (SOIL) is up 1.16 per cent, trading at $2.62 per share as of 2:04 p.m. ET.