Spartan Delta Corp T.SDE

Petrinex March 2022

[fauxtomato]

Production volume in m3, March looks good: lots of gas which isn't a bad thing.

Sum of Volume	Column Labels
Row Labels	2020-12	2021-01	2021-02	2021-03	2021-04	2021-05	2021-06	2021-07	2021-08	2021-09	2021-10	2021-11	2021-12	2022-01	2022-02	2022-03
COND	45	25	43	60	35	64	628	490	468	487	500	355	61	494	149	182
GAS	120,291	122,773	127,087	162,694	169,814	169,808	160,455	165,410	171,537	216,584	253,131	261,588	260,212	262,780	234,669	278,427
OIL	1,605	1,687	1,447	9,948	10,183	9,986	9,389	9,477	8,923	54,315	51,792	52,537	59,829	56,894	49,808	55,788
Grand Total	121,941	124,486	128,577	172,702	180,031	179,858	170,472	175,377	180,928	271,385	305,423	314,480	320,103	320,168	284,625	334,397

[fattykens]

Thank you for posting that. So they are past the upper limit of their 2022 guidance and they still have a lot of capex for the year left. When I spoke with IR a few weeks ago they said they were putting out a new 3 year plan. I wonder if they will be revising guidance in the first quarter? It really looks like they may exit 2022 north of 78,000 bpd with 18,000-19,000 of that oil/conde. Is this

[TerribleEng]

That's what I estimated back in Feb. I think the average is going to be close to 75K with an exist of 78-79. Risk will be oil servicing inflation, and the threat of higher capex or less wells drilled.  Their guidance makes no sense. Spend X amount in 2022 which is higher than 2021 annualized which saw material growth, and more than competiting producers need for sustaining capital... but

[fauxtomato]

I agree that SDE shot themself in the foot with guiding too conservatively. I'll give them a pass as the outperformance seems mostly related to the Gold Creek wells and they haven't controlled that acreage for very long, those numbers should be revised higher with Q1: would be great to get specific well results or aggregate results by business unit. I think production will moderate in the

[fattykens]

This is from the company two weeks ago. "In terms of free funds flow allocation, Spartan’s first priority is paying off debt. Once Spartan’s debt target is achieved we will consider return of capital options and accretive “tuck-in” acquisitions within our core areas." I dont know what their debt target is but hopefully we will get some clarity shortly. FK

[TerribleEng]

When I talked with them in Q1, they were looking at holding debt/ebitda of 1.0 at mid-cycle pricing. They will be way past that be the end of Q2.