Saturn Oil & Gas announces accretive core-area Saskatchewan asset acquisition

On May 6, 2024, Saturn Oil & Gas Inc. (“Saturn“) announced that it entered into a definitive purchase agreement for the strategic acquisition of two oil-weighted asset packages in southern Saskatchewan that are contiguous with its existing Saskatchewan asset base, for a total net cash consideration of approximately US$525 million.

The acquisition will be funded through a US$625 million debt commitment provided by Goldman Sachs, subject to customary conditions, which will replace Saturn’s existing senior secured term loan facility as well as a bought-deal subscription receipt financing for aggregate gross proceeds of approximately US$100 million.

The acquisition is comprised of two distinct asset packages that directly offset existing core properties, which include Battrum area assets located in Southwest Saskatchewan and Flat Lake area assets located in Southeast Saskatchewan.

Saturn has also entered into an agreement with National Bank of Canada pursuant to which it has committed to arrange a US$150 million reserves-based loan, subject to customary closing conditions. The reserves-based loan, further increases Saturn’s liquidity, and is expected to remain undrawn at the closing date.

The closing date of the acquisition is expected on or about June 14, 2024 with an effective date of January 1, 2024, which is subject to customary approvals and closing conditions.

Further information can be found on Canada Newswire’s website.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities.