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Be the first with the news that moves the market- Saturn Oil & Gas (SOIL) has acquired Ridgeback Resources for approximately $516 million in cash and shares
- With the acquisition, approximately 40 per cent of Saturn’s production will be in Alberta
- The acquisition will expand Saturn’s pro forma production by approximately 140 per cent to ~30,000 boe/d2 of sustainable, light oil-focused, high netback production
- Saturn Oil & Gas Inc. is a Canadian energy company focused on the development of high-quality, light oil-weighted assets
- Saturn Oil & Gas Inc. opened trading at C$2.55 per share
Saturn Oil & Gas (SOIL) has successfully completed the previously announced acquisition of Ridgeback Resources for approximately $516 million.
The Ridgeback acquisition adds:
- approximately 17,000 boe/d of additional oil and natural gas production (approximately 140 per cent increase); and
- target run-rate production of over 30,000 boe/d (82 per cent crude oil and NGLs).
John Jeffrey, CEO of Saturn, commented on the news.
“With the closing of the Ridgeback acquisition, Saturn has diversified its light oil-focused production base with a deep and sustainable portfolio of development opportunities,” said “We now have a total inventory of over 940 (gross) booked drilling locations to sustain Saturn’s production for over a decade.”
Payment for the acquisition consisted of $475 million in cash, and 19,406,167 common shares.
With the acquisition, approximately 40 per cent of Saturn’s production will be in Alberta, offering play diversification of highly economic, light oil-focused drilling. Each of the Alberta areas has high working interests: Cardium (68 per cent), Deer Mountain (100 per cent) and Kaybob (100 per cent), and have an infrastructure in place to drive low operating costs and realize high cash netbacks. The acquisition also offers a new core area for the company with an entry into the Alberta Cardium play, one of North America’s largest oil pools, with over 300 de-risked development drilling locations and approximately 8,700 boe/d of light oil-focused production.
About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. is a Canadian energy company focused on the development of high-quality, light oil-weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities.
Saturn Oil & Gas Inc. (SOIL) opened trading at C$2.55 per share.
