Canadian Oil And Gas Stock Saturn Oil & Gas Inc. (TSX: SOIL) (OTCQX: OILSF) Makes TSX Top Gainer List On Acquisition News
Saturn Oil & Gas makes the TSX top gainer list today on acquisition news as energy prices dominate headlines. The stock is trading at 9.00 +0.97 (+12.16%) on volume of over 500,000 shares as of this report.
Oil prices retreated from five-month highs this morning but investors are still sensitive to headlines and see the energy play very much alive in the near future.
AdvertisementNews highlights- Acquisition adds ~7,000 bbl/d(1,5) of 100% light oil production, expanding Saturn's Southeast Saskatchewan core area into Manitoba and increasing our forecast 2026 exit production rate to 54,000 - 56,000 boe/d(1,6) Accretive $82.00/bbl(2)netbacks at current strip pricing, contributing to an estimated $192 million of run-rate net operating income (NOI)(2,5) Purchase price of $302 million represents 1.6x NOI(2,5) and 82% of PDP NPV10(4) value, aligning with Saturn's blueprint strategy Transaction is expected to be immediately accretive to operating netback, adjusted funds flow per share and free funds flow per share, while exit 2027 target leverage metrics remain unchanged at under one times Complementary development adds 323 gross (279 net) identified locations(3,7) to Saturn's drilling inventory, with incremental open hole multi-lateral potential not reflected in current reserves value
Saturn Oil & Gas announced that we have entered into a definitive arrangement agreement (the "Arrangement Agreement") with Corex Resources Ltd. ("Corex"), a privately held Calgary-based company, pursuant to which Saturn will acquire all of the issued and outstanding shares of Corex by way of a plan of arrangement under the Business Corporations Act (Alberta), for total consideration to Corex shareholders of $302 million (the "Acquisition").
The Acquisition consists of approximately 7,000 bbl/d(1,6) of 100% light oil-weighted, high-netback production in Southwest Manitoba ("SW MB"), immediately adjacent to our Southeast Saskatchewan ("SE SK") core area. In addition, the assets offer attractive future development locations, including potential open hole multi-lateral ("OHML") targets identified by the Saturn team that are not reflected in the current reserves booking. Consideration for the Acquisition will be comprised of both cash and equity, including approximately $252 million in cash and the issuance of Saturn common shares (the "Saturn Shares") to Corex shareholders, having a deemed value of $50 million based on the preceding 20-day volume-weighted average price. Saturn Shares issued to the Azimuth Energy Partners funds ("Azimuth"), Corex's majority shareholder, will be subject to a lock-up agreement providing for their staged release in three equal tranches over the 18 months following closing. The Acquisition is expected to close in December 2026 (the "Closing Date"), subject to the satisfaction or waiver of customary closing conditions.
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