SASKATOON, Saskatchewan, April 06, 2018 (GLOBE NEWSWIRE) -- Saturn Oil & Gas Inc. (“Saturn” or the “Company”) (TSX.V:SMI) (FSE:SMK) is pleased to provide initial 30-day production (“IP30”) results for two of the three recently completed Viking horizontals in the Flaxcombe area. The Company would also like to announce that it has entered into a secured Financing Facility Agreement (the “Facility Agreement”) with UOG-BC Holdings Ltd., an affiliate of RC Morris & Company Special Opportunities Fund III Limited Partnership (the “Lender”). The Facility provides a total loan commitment of up to C$2.75 million.
Further to Saturn’s news release dated February 21, 2018. The Company drilled and completed three 100% working interest Viking horizontal wells in the Flaxcombe area. Two of Saturn’s recent wells (102/10-31-029-26W3/00 or “10-31” and 102/09-29-029-26W3/00 or “09-29”) were brought on production in late February 2018. The 10-31 well initial 30-day production (“IP30”) results were 91.2 barrels of 36° API light oil per day. The 09-29 well was the first horizontal well on the section and a step-out well for the Company. The 09-29 well IP30 results were 59.7 barrels of 36° API light oil per day. The 09-29 well continues to clean-up from completion and improve its production with current flow rates in excess of 100 barrels per day of total fluid with 50% water cuts. The Company’s third Viking horizontal that was drilled in the first quarter of 2018 was brought online in early March 2018 and the company will announce IP30 results as they come available.
The Company would like to provide an update on the first two Viking horizontal wells drilled in December 2017. The Viking horizontal wells have continued to exceeded expectations with initial 90-day production (“IP90”) results for 101/09-31 averaging 95.9 barrels of oil per day and 102/09-31 averaging 86.0 barrels of oil per day. Total cumulative production for these two wells has exceeded 13,800 barrels of light crude.
Pursuant to the Facility Agreement, the Lender will provide a total loan commitment of up to C$2.75 million, repayable within one year. Pursuant to the Facility Agreement, and subject to the prior approval of the TSX Venture Exchange, the Company will issue 859,375 share purchase warrants, exercisable at current market price, within 30 days of closing. The warrants shall be exercisable by the Lender for one year from the date of issuance.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. (TSX.V:SMI) (FSE:SMK) is a public energy Company focused on the acquisition and development of undervalued, low risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. De-risked assets and calculated execution will allow Saturn to achieve growth in reserves & production through retained earnings. Saturn's portfolio will become its key to growth and provide long-term stability to shareholders.
To learn more, please contact the Company at 1 (306) 955-9946 or visit: www.saturnoil.com
On Behalf of the Board of Directors,
SATURN OIL & GAS INC.
John Jeffrey, MBA – CEO & Chairman
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.