Saturn Oil & Gas Inc. Accretive Viking Light Oil Acquisition /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/
- Strategic $260 million asset acquisition expands Saturn's proforma production by over 50% on closing to ~11,4001 boe/d to be funded by combination of term debt and a $65 million bought-deal subscription receipt financing
- Accretive transaction drives 2023 guidance for adjusted funds flow2 of $223 million equating to $3.98 per share
- Provides substantial free cash flow which can be directed to debt reduction and to fund top tier organic growth (25% from closing to the end of 2023), both of which are anticipated to drive enhanced shareholder returns
CALGARY, AB, May 31, 2022 /CNW/ - Saturn Oil & Gas Inc. ("Saturn" or the "Company") (TSXV: SOIL) (FSE: SMKA) is pleased to announce that it has entered into an arms-length definitive agreement to acquire synergistic assets in the Viking area of West-central Saskatchewan (the "Viking Acquisition") for approximately $260 million, funding details for which are outlined below. The Viking Acquisition is expected to close on or about July 6, 2022 (the "Closing Date") with an effective date of May 1, 2022.