On May 6, 2024, Saturn Oil & Gas Inc. announced the strategic acquisition of two oil-weighted asset packages in southern Saskatchewan for approximately $525 million. The acquisition, expected to close around June 14, 2024, includes the Battrum area assets in Southwest Saskatchewan and the Flat Lake area assets in Southeast Saskatchewan. These assets align with Saturn's strategy of acquiring top-quality oil-weighted assets with long-term development potential.

The acquisition will be funded through a US$625 million debt commitment from Goldman Sachs, which will replace Saturn's existing senior secured term loan. Additionally, Saturn secured a $150 million reserves-based loan from National Bank of Canada, further enhancing liquidity. The company also entered a bought-deal subscription receipt financing agreement to raise approximately $100 million.

The acquired assets are expected to produce about 13,000 boe/d, comprising 96% oil and NGLs. Saturn anticipates operational synergies, a low production decline rate, and significant development opportunities, including approximately 950 identified drilling locations. The assets have a positive Licensee Liability Report rating, enhancing Saturn's overall portfolio.

Echelon Capital Markets acted as financial advisor, with Goldman Sachs providing the debt commitment and National Bank Financial Markets arranging the new RBL. Dentons Canada LLP and Baker Botts LLP served as legal counsel for Saturn, while DLA Piper, LLP advised the underwriters and Goldman Sachs. Latham Watkins LLP and Torys LLP served as US and Canadian counsel to Goldman Sachs, respectively.

The acquisition highlights Saturn's commitment to strategic growth, operational efficiency, and shareholder value creation.