Saturn Oil & Gas Inc. Provides Corporate Update and Confirms Response to COVID-19
- Mar 25 2020
CALGARY, ALBERTA – March 25, 2020 - Saturn Oil & Gas Inc. ("Saturn" or the "Company") (TSX.V: SOIL) (FSE: SMK) today provides a corporate update in response to recent market volatility caused by the COVID-19 pandemic and the continued oil price weakness.
Saturn is pleased to confirm that in the interests of managing risk through an uncertain environment, the Company has secured a fixed price hedge on production of 400 barrels (“bbl”) of oil per day at CAD $65.40 per bbl through February, 2021. With this hedge, Saturn has increased its financial flexibility by securing a fixed price on approximately 50% of its current production volumes.
Consistent with many industry peers, the Company also confirms its intention to shift Saturn’s 2020 capital allocation strategy from organic drilling opportunities to potential accretive acquisition targets. After evaluating numerous land, asset and corporate opportunities, Saturn believes that pursuing acquisition targets offers superior rates of return in the current commodity price environment versus drilling. The potential acquisitions being assessed would enable the Company to leverage its existing infrastructure, capacity and expertise, and would be designed to position Saturn for continued responsible growth in a more favourable commodity price environment.
"In this uncertain time when people and families are facing numerous challenges due to the continued spread of COVID-19, Saturn is doing what we can to support the health and well-being of our employees, partners and shareholders to safely manage through these unchartered waters," said John Jeffrey, CEO of Saturn. "One of Saturn's strengths is our flexibility to respond rapidly to changes in the broader market and to pursue those strategies offering the best potential rates of return for our shareholders. As a result, we have locked in attractive pricing on approximately one half of our current production for the next twelve months, and have turned our focus to portfolio-building for the future rather than risk eroding value by drilling into such a weak pricing environment."
The safety and security of Saturn’s employees and service providers remains a top priority for the Company and all required and recommended practices both in the field and the office are being followed to help curb the spread of the Coronavirus. The Company remains on track to publish and file its audited annual 2019 financial statements and related MD&A by April 29, 2020.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. (TSX.V: SOIL) (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 and production through retained earnings. Saturn's portfolio will become its key to growth and provide long-term stability to shareholders.
Investor & Media Contact:
Saturn Oil & Gas
John Jeffrey, MBA - Chief Executive Officer & Chairman
Tel: +1 (587) 392-7902
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.
Forward-Looking Information and Statements
Certain statements contained in this release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this release includes, but is not limited to: potential outcomes from the appointment of Jim Payne to the Company's board of directors.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required by law, Saturn disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The forward-looking information contained herein is expressly qualified by this cautionary statement.