CALGARY,
AB, Jan. 6, 2025 /CNW/ - Spartan Delta
Corp. ("Spartan" or the "Company") (TSX:
SDE) is pleased to provide an operations update following the
successful completion of its 2024 drilling program.
OPERATIONS UPDATE
Spartan continues to execute on its corporate strategy by
significantly growing oil and liquids production and acreage in the
West Shale Basin Duvernay (the "Duvernay"), focusing on improving well
costs and productivity, while leveraging its technical expertise in
the Deep Basin to optimize operations, growing production as it
continues to develop liquids-rich targets. In the fourth quarter of
2024, Spartan averaged estimated production of approximately 38,523
BOE/d (35% liquids), exceeding forecasted production. Spartan's
crude oil and condensate production increased approximately 72%
when compared to the fourth quarter of 2023. The Company's
portfolio of assets provides shareholders exposure to oil, liquids,
and natural gas production and is poised to offer repeatable and
economic results presenting the opportunity to generate significant
shareholder returns.
Spartan anticipates providing additional details regarding its
preliminary 2025 operating budget and guidance on or before the
release of its annual results for 2024.
DUVERNAY
To date in the Duvernay,
Spartan has successfully drilled 4.0 (3.4 net) wells, including a
vertical stratigraphic well, and has completed and brought
on-stream 4.0 (3.4 net) wells including an existing drilled, but
uncompleted well ("DUC"), all in the Willesden Green
Duvernay ("Willesden Green"). Spartan is encouraged by the
Duvernay as initial results have
outperformed internal expectations.
In the fourth quarter, Spartan completed and brought on-stream
2.0 (1.4 net) wells from a licensed eight well pad at
05-18-042-03W5:
- 03-26-042-04W5 Spartan completed and brought the well
on-stream in November at a lateral length of 3,560 meters (11,680
feet). Initial production results are exceeding internal
expectations, averaging 30-day peak sales production of
approximately 1,166 BOE/d and 90% liquids (1,019 BBL/d of 48° API
crude oil, 28 BBL/d of NGLs, and 0.7 MMcf/d of natural gas).
- 09-05-042-03W5 Spartan completed and brought the well
on-stream in November at a lateral length of 3,720 meters (12,200
feet). Initial production results are exceeding internal
expectations, averaging 30-day peak sales production of
approximately 1,029 BOE/d and 87% liquids (865 BBL/d of 48° API
crude oil, 31 BBL/d of NGLs, and 0.8 MMcf/d of natural gas).
In the fourth quarter, Spartan acquired approximately 11,400 net
acres in the Duvernay. To date,
Spartan has accumulated approximately 250,000 net acres and
believes the majority of its acreage is in the tier one oil and
condensate rich Duvernay fairway
with initial production results validating this thesis as
production rates and flowing pressures are stronger than the
nearest offsetting wells completed by the previous operators.
DEEP BASIN
In the fourth quarter, Spartan drilled, completed and brought
on-stream 1.0 (1.0 net) well targeting the Wilrich formation.
- 13-31-044-10W5 with a lateral length of 2,902 meters
(9,521 feet), averaged 30-day peak sales production of
approximately 2,263 BOE/d and 37% liquids (216 BBL/d condensate,
625 BBL/d of NGLs, and 8.5 MMcf/d of natural gas).
Additionally, in the fourth quarter, Spartan resumed production
of 1.0 (1.0 net) Wilrich well with initial test rates of
approximately 24.0 MMcf/d, but intermittently shut-in production
due to the depressed price of natural gas in the summer.
- 01-36-044-11W5 with a lateral length of 2,808 meters
(9,213 feet), averaged 30-day peak sales production of
approximately 4,049 BOE/d and 23% liquids (84 BBL/d condensate, 843
BBL/d of NGLs, and 18.7 MMcf/d of natural gas).
Spartan continues to monitor natural gas prices and will
intermittently curtail natural gas production and delay new natural
gas production if deemed necessary or accelerate drilling as a
result of the contango forward curve.
ABOUT SPARTAN DELTA CORP.
Spartan is committed to creating value for its shareholders,
focused on sustainability both in operations and financial
performance. The Company's culture is centered on generating Free
Funds Flow through responsible oil and gas exploration and
development. The Company has established a portfolio of
high-quality production and development opportunities in the Deep
Basin and the Duvernay. Spartan
will continue to focus on the execution of the Company's organic
drilling program in the Deep Basin, delivering operational
synergies in a respectful and responsible manner to the environment
and communities it operates in. The Company is well positioned to
continue pursuing optimization in the Deep Basin, participate in
the consolidation of the Deep Basin fairway, and continue growing
and developing its Duvernay asset
by leveraging Spartan's balance sheet and Free Funds Flow.
Spartan's corporate presentation as of January 6, 2025, can be accessed on the Company's
website at www.spartandeltacorp.com.
OTHER MEASUREMENTS
All dollar figures included herein are presented in Canadian
dollars, unless otherwise noted.
This press release contains various references to the
abbreviation "BOE" which means barrels of oil equivalent.
Where amounts are expressed on a BOE basis, natural gas volumes
have been converted to oil equivalence at six thousand cubic feet
(Mcf) per barrel (bbl). The term BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six
thousand cubic feet per barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead and is
significantly different than the value ratio based on the current
price of crude oil and natural gas. This conversion factor is an
industry accepted norm and is not based on either energy content or
current prices.
References to "oil" in this press release include light crude
oil and medium crude oil, combined. National Instrument 51-101 –
Standards of Disclosure for Oil and Gas Activities ("NI
51-101") includes condensate within the product type of
"natural gas liquids". References to "natural gas liquids" or
"NGLs" include pentane, butane, propane, and ethane. References to
"gas" or "natural gas" relates to conventional natural gas.
References to "liquids" includes crude oil, condensate and
NGLs.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
Certain statements contained within this press release
constitute forward-looking statements within the meaning of
applicable Canadian securities legislation. All statements other
than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "budget",
"plan", "endeavor", "continue", "estimate", "evaluate", "expect",
"forecast", "monitor", "may", "will", "can", "able", "potential",
"target", "intend", "consider", "focus", "identify", "use",
"utilize", "manage", "maintain", "remain", "result", "cultivate",
"could", "should", "believe" and similar expressions. Spartan
believes that the expectations reflected in such forward-looking
statements are reasonable as of the date hereof, but no assurance
can be given that such expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
Without limitation, this press release contains forward-looking
statements pertaining to: the business plan, objectives, cost
model and strategy of Spartan, continued optimization of its Deep
Basin asset, participation in the consolidation of the Deep Basin
fairway and advancing its Duvernay
strategy; the Company's drilling strategy in the Deep Basin;
expected drilling and completions in the Duvernay; Spartan's strategies to deliver
strong operational performance and to generate significant
shareholder returns; the ability of the Company to achieve drilling
success consistent with management's expectations; being well
positioned to take advantage of opportunities in the current
business environment; Spartan's ability to leverage its balance
sheet and Free Funds Flow to progress its Duvernay strategy, to continue pursuing
immediate production optimization and responsible future growth
with organic drilling, to continue to execute on building an
extensive position in the Duvernay; potential future intermittent
curtailment of natural gas production and delay or acceleration of
new natural gas production depending on natural gas prices; and the
timing of release of preliminary 2025 operating budget and
guidance.
The forward-looking statements and information are based on
certain key expectations and assumptions made by Spartan,
including, but not limited to, expectations and assumptions
concerning the business plan of Spartan, the timing of and success
of future drilling, development and completion activities, the
growth opportunities of Spartan's Duvernay acreage, the performance of existing
wells, the performance of new wells, the availability and
performance of facilities and pipelines, the geological
characteristics of Spartan's properties, the successful application
of drilling, completion and seismic technology, prevailing weather
conditions, prevailing legislation affecting the oil and gas
industry, prevailing commodity prices, price volatility, future
commodity prices, price differentials and the actual prices
received for the Company's products, anticipated fluctuations in
foreign exchange and interest rates, impact of inflation on costs,
royalty regimes and exchange rates, the application of regulatory
and licensing requirements, the availability of capital, labour and
services, the creditworthiness of industry partners, general
economic conditions, and the ability to source and complete
acquisitions.
Although Spartan believes that the expectations and assumptions
on which such forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the
forward-looking statements and information because Spartan can give
no assurance that they will prove to be correct. By its nature,
such forward-looking information is subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties include, but
are not limited to, fluctuations in commodity prices; changes in
industry regulations and legislation (including, but not limited
to, tariffs, tax laws, royalties, and environmental regulations);
changes in the political landscape both domestically and abroad,
wars (including Russia's military
actions in Ukraine and the
Israel-Hamas conflict in Gaza),
hostilities, civil insurrections, foreign exchange or interest
rates, increased operating and capital costs due to inflationary
pressures (actual and anticipated), risks associated with the oil
and gas industry in general, stock market and financial system
volatility, impacts of pandemics, the retention of key management
and employees, risks with respect to unplanned third-party pipeline
outages and risks relating to inclement and severe weather events
and natural disasters, including fire, drought, and flooding,
including in respect of safety, asset integrity and shutting-in
production.
Please refer to Spartan's management's discussion and analysis
for the period ended September 30,
2024, and annual information form for the year ended
December 31, 2023, for discussion of
additional risk factors relating to the Company, which can be
accessed either on Spartan's website at www.spartandeltacorp.com or
under Spartan's SEDAR+ profile on www.sedarplus.ca. Readers are
cautioned not to place undue reliance on this forward-looking
information, which is given as of the date hereof, and to not use
such forward-looking information for anything other than its
intended purpose. Spartan undertakes no obligation to update
publicly or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
References in this press release to peak rates, initial
production rates, test rates, average 30-day production and other
short-term production rates are useful in confirming the presence
of hydrocarbons, however such rates are not determinative of the
rates at which such wells will commence production and decline
thereafter and are not indicative of long-term performance or of
ultimate recovery. While encouraging, readers are cautioned not to
place reliance on such rates in calculating the aggregate
production of Spartan. The Company cautions that such results
should be considered preliminary.
SOURCE Spartan Delta Corp.
