Spartan Delta Corp. Provides First Quarter 2021 Operational Update
Calgary, Alberta – April 15, 2021 – Spartan Delta Corp. (“Spartan” or the “Company”) (TSXV:SDE) is pleased to provide an update on the Company’s operations following the successful completion of its winter drilling program in its West Central Alberta core area. For the first quarter of 2021, based on field estimates, Spartan’s average production was approximately 31,500 BOE/d (135.6 mmcf/d natural gas, 600 bbls/d crude oil, 1,300 bbls/d condensate, and 7,000 bbls/d NGLs) including 14 days of production from the recently acquired assets; reflecting a 21% growth in production quarter-over-quarter. Current production, including production from the recently acquired assets is approximately 41,800 BOE/d (175.8 mmcf/d natural gas, 2,000 bbls/d crude oil, 1,500 bbls/d condensate, and 9,000 bbls/d NGLs).
- Spartan’s 8-well winter drilling program, consisting of 7 Spirit River wells and 1 Cardium well, exceeded expectations including several wells on planned restricted flow
- Average production
o IP30 of 1,626 BOE/d (6.9 mmcf/d natural gas, 103 bbls/d condensate, and 373 bbls/d NGLs) from all 8 wells in the program
o IP60 of 1,748 BOE/d (7.6 mmcf/d natural gas, 88 bbls/d condensate, and 393 bbls/d NGLs) from the 6 wells onstream more than 60 days
o IP90 of 1,575 BOE/d (6.8 mmcf/d natural gas, 84 bbls/d condensate, and 358 bbls/d NGLs) from the 2 wells onstream more than 90 days
- Average capital expenditure (DCET) for the winter drilling program was $3.8 million per well, which was 6% under internal estimates. Lower costs are attributable to faster drilling and efficiencies achieved through drilling from existing pads
- Average payout of the 8-well program is expected to be within 6.5 months of onstream dates at current commodity pricing
- Forecasted 12-month capital efficiency of the 8-well program is expected to be approximately $4,000 per BOE/d
- Drill cost per lateral meter and completion cost per ton of sand were reduced by 27% and 39% respectively from the previous operator’s 2019 drilling program
Additional Drilling Activity in 2021
As part of the Company’s 2021 capital budget of $101 million, Spartan plans to drill an additional 13 wells in the second half of 2021. The second half 2021 drilling program is comprised of 9 wells in West Central Alberta targeting the Spirit River and Cardium zones and 4 wells in the recently acquired Alberta Montney acreage at Gold Creek. Where possible, these wells will be drilled from existing pads, minimizing environmental impact while utilizing Spartan’s extensive infrastructure network to lower capital and operating costs.
In-line with Spartan’s objective to diversify commodity exposure while simultaneously pursuing top-tier economic returns, wells targeting the liquids-rich Cardium and oil-weighted Montney at Gold Creek are expected to add oil and condensate production to the revenue stream of the Company into 2022.
About Spartan Delta Corp.
Spartan is a differentiated energy company whose ESG-focused culture is centered on generating sustainable free funds flow through oil and gas exploration and development. Building on its existing high-quality, low-decline operated production in the heart of the West Central Alberta deep basin and Alberta oil-weighted Montney, Spartan intends to continue acquiring undervalued, diversified assets that can be restructured, optimized and rebranded, financially or operationally, yielding accretion to shareholder value. With excess infrastructure capacity, the Company is well positioned to continue pursuing immediate production optimization and responsible future growth. Further detail is available in Spartan’s March corporate presentation, which can be accessed on its website at www.spartandeltacorp.com.
For additional information please contact:
President and Chief Executive Officer
Richard F. McHardy
Spartan Delta Corp.
500, 207 – 9th Avenue SW
Calgary, Alberta T2P 1K3