SPARTAN DELTA The Transaction positions Spartan as an intermediate exploration and development company whose growth strategy is focused on the acquisition and development of underexploited and undercapitalized assets that offer material upside and sustainable free cash flow within the current commodity price environment.
Asset Outperformance Supported by Strong Hedge Book
Based on field receipts, Spartan's current production is estimated at approximately 26,000 boe/d1, primarily from the Ferrier and Willesden Green areas, compared to approximately 25,000 boe/d (30% oil and natural gas liquids) estimated at the time of closing the Transaction five weeks ago. This production outperformance was achieved without capital investment and demonstrates the success of Spartan's recent production optimization and integration activities, the high caliber of staff retained through the Transaction, as well as the predictable and stable nature of its asset base. Continued growth will be pursued through the ongoing development of existing assets with exposure to the
To protect project economics and cash flows, while mitigating ongoing volatility in commodity markets, Spartan has strategically hedged approximately 60% of its natural gas volumes for the latter half of 2020 and approximately 45% of forecast natural gas volumes for 2021 at attractive price levels.
Fostering Key Stakeholder Relationships
As a critical component of its strategy, Spartan is targeting industry leadership across environmental, social and governance ('ESG') best practices and will uphold a corporate culture that embodies the responsible and ethical stewardship of assets and investor capital. Consistent with this philosophy, Spartan and the O'Chiese First Nation community are working together to set the stage for a long and mutually beneficial relationship based on trust and mutual respect. The O'Chiese First Nation currently has a five percent working interest in Spartan's operated Nees Opawganu'ck deep cut plant and is a joint venture partner in the development of oil and gas resources situated on O'Chiese First Nation lands. Spartan will seek to engage O'Chiese First Nation businesses and business partners for its field operations, further supporting a collaborative environment that can benefit both parties.
Upon closing of the Transaction, Spartan seamlessly integrated the acquired assets, systems, processes and most importantly, people, despite the social distancing challenges presented by COVID-19. With the addition of over 100 new, permanent employees and contractors across its head office and field operations, Spartan is pleased to have assembled a talented group of professionals who bring valuable skills, expertise, and knowledge of the acquired assets, further strengthening the Company's rapidly evolving position in the industry.
Second Quarter 2020 Results
The Company also confirms its second quarter 2020 financial and operating results for the period ended
About
Contact:
Email: rmchardy@SpartanDeltaCorp.com
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'objective', 'ongoing', 'may', 'will', 'project', 'should', 'believe', 'plans', 'intends' and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning: the growth strategy and business plan of the Company; development plans for the Company's assets and the completion of additional acquisitions; expected production and cash flow; the Company's ESG initiatives and the timing of the Company's second quarter 2020 results announcement.
The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including expectations and assumptions concerning the business plan of the Company, expected production, and benefits and synergies arising from the Transaction. Although Spartan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Spartan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations in commodity prices, changes in industry regulations and political landscape both domestically and abroad, foreign exchange or interest rates, stock market volatility, impacts of the current coronavirus (COVID-19) pandemic and the retention of key management and employees. Please refer to the Company's most recent Annual Information Form and Management Discussion and Analysis for additional risk factors relating to Spartan, which can be accessed either on Spartan's website at www.spartandeltacorp.com or under the Company's profile on www.sedar.com. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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