• Q1/25 capital program realized well outperformance averaging 20% above internal type curves, driving estimated average volumes over 41,600 boe/d
• Opportunistically retired ~US$15 million of senior notes by allocating ~C$21 million to open market repurchases at prices below par
• Continued share buybacks with ~3.4 million shares repurchased to date in 2025, bringing total repurchases to 7.9 million shares since the program's launch in August 2024, or ~4% of outstanding 
• Recognized by The Financial Times as the fastest growing energy company across all of the Americas

Saturn Oil & Gas, a light oil-weighted producer focused on unlocking value through the development of their assets in Saskatchewan and Alberta, provides an update on their Q1/25 capital program along with a corporate update highlighted by ongoing debt reduction and continued share repurchases.

"I'm proud to showcase Saturn's ongoing operational efficiency with an average 20% well outperformance while our spending remains on budget, providing valuable flexibility in a tumultuous market, and positioning us to reallocate capital as may be needed without impacting our production guidance," said John Jeffrey, Chief Executive Officer of Saturn. "Through the recent volatility, we have captured opportunities to reduce our debt and strengthen our balance sheet by retiring US$15 million of our senior notes through open market purchases below par. In addition, we have continued to invest in Saturn's future with ongoing share buybacks, designed to further enhance our per share metrics and position the Company for long-term resilience and value creation for all stakeholders."

Q1/25 CAPITAL PROGRAM SNAPSHOT

During the first quarter of 2025, Saturn executed a safe and efficient capital expenditure program, investing approximately $73 million to drill 33 gross (24.4 net) wells, with four rigs running in Saskatchewan and one in Alberta. A total of 26 (22.3 net) wells were drilled in southeast Saskatchewan, six (1.2 net) wells in West Saskatchewan and one (1.0 net) well in Alberta. By the end of the period, all wells had been successfully completed, equipped and tied-in, with IP30 rates available on the majority of wells brought on production. On average, these IP30 rates were well above our internally forecasted type curve, contributing to our strong Q1/25 average production volumes estimated at over 41,600 boe/d, exceeding the upper end of our quarterly guidance range of 39,500 to 40,500 boe/d. Building on the Company's track record of effective and efficient capital deployment to date, Saturn realized continued outperformance of new wells during the quarter, exceeding internal type curve estimates by an average of 20% across the program.

Conventional / Mississippian Development Highlights

Saturn's 11-04 Frobisher Mississippian well at Browning in southeast Saskatchewan realized a record initial production rate after 30 days ("IP30") of approximately 340 barrels per day ("bbls/d") based on a sample set of approximately 100 wells. The 11-04 well ranked in the top ten list of Saskatchewan daily and monthly oil volumes for February 2025 as published by an independent investment dealer. Given the strong performance of this well, Saturn is targeting to drill an additional offsetting location in the next 12 months.

Also in the Frobisher, Saturn completed the first re-entry done by the Company in three years at Queensdale, which came on production at twice our internal type curve expectations. Historically, the economics of such projects could not compete for capital relative to new drills, however, with the recent introduction of the Low Productivity and Reactivation Oil Well Program ("LPRP") by the Government of Saskatchewan, the economics for well re-entries are more compelling. The LPRP is an incentive program designed to encourage new capital investments in existing low-producing and inactive horizontal oil wells. In light of our success on this first re-entry, along with the incentives provided by the LPRP, Saturn intends to pursue additional low-cost re-entry projects in Saskatchewan through 2025 and beyond.

We drilled our first Midale location since 2023 at 05-28 during the quarter, which came on production approximately 50% above our internal type curve. New reprocessed seismic over the Carnduff area facilitated selection of the location, and we have more than 60 incremental net booked locations in this region. Saturn intends to continue using seismic to select further locations, which we believe will contribute increased value to our booked inventory.

Torquay Waterflood Update

As part of our commitment to long-term sustainability, Saturn continued to invest in our waterflood projects during the quarter. Three Torquay producers were converted to injectors, supporting our Torquay waterflood as well as future pre-pressurized Bakken locations. In addition, we identified the opportunity to increase injection and production in the Oungre and Torquay fields by separating produced water from each formation, since combining the fluids creates an unusable emulsion. We completed the infrastructure build in Q1/25 to separate the produced water, allowing it to be utilized for re-injection versus disposal which enhances economics and reduces environmental impact. With produced water now available for flooding the Oungre, we have introduced approximately 3,000 bbl/d of injection and were able to suspend a source water well that is expected to save an estimated $250,000 per year in operating costs. Success on this pilot could eliminate the need to drill source water wells to maintain pressure support in the Oungre, reducing future capital requirements.

CORPORATE UPDATE

Debt Reduction with Senior Notes Repurchase

As part of the Company's ongoing efforts to optimize our capital structure, Saturn opportunistically purchased for retirement US$15 million of our outstanding 9.625% senior notes maturing on June 15, 2029 at prices below par. By retiring debt at a discount to par value, the Company reduces total liabilities in a more cost-effective manner than exercising our optional repayment feature or repaying at maturity, while also lowering future interest obligations, which enhances our financial flexibility. This retirement of Senior Notes, coupled with our 2.5% quarterly principal repayment in March, further accelerates our debt reduction strategy resulting in a current principal balance outstanding on our Senior Notes of US$586 million. We intend to remain opportunistic on this initiative over the near term, which we believe will further enhance Saturn's balance sheet resilience and underpin long-term shareholder value. Saturn's Senior Notes are not subject to any financial covenants, and although we have a requirement to hedge 50% of oil and liquids production, that hedge requirement pauses if WTI prices fall below US$50/bbl.

Robust Risk Mitigation Insulates Against Volatility

Saturn's internal hedge strategy is to maintain 50 to 60% of PDP barrels hedged over 12 months, and approximately 30 to 40% hedged up to 18 months out. We also have hedges on the Canadian MSW and WCS benchmark price differentials to WTI, which adds further pricing protection. Using currency swaps, Saturn locked-in the FX rate on the principal and interest payments of our US denominated Senior Notes through mid-2027 at $1.3394 CAD to $1.00 USD ($0.7466 USD to $1.00 CAD). Over and above the hedges in place at year end 2024, the Company secured collars on 5,000 bbl/d of oil through the balance of 2025 at a floor price of C$100/bbl and a ceiling of C$110/bbl, along with additional natural gas hedges for 2025, 2026 and into Q1 2027, at prices ranging from $2.00/GJ to $3.35/GJ. Should the WTI benchmark oil price fall to US$50/bbl, Saturn's hedge book provides significant protection, having a cash value of over $160 million at that level.

Continued Share Buybacks and Insider Purchases

Saturn remains committed to delivering shareholder value through disciplined capital allocation. Since launching our Normal Course Issuer Bid ("NCIB") program in August 2024, we have executed daily purchases at the maximum of approximately 46,000 shares per day. Approximately 3.4 million shares have been repurchased and returned to treasury to date in 2025, bringing total repurchases to 7.9 million shares since the program's launch in August 2024, or approximately 4% of the common shares outstanding at that date.

Further confidence in the Company's long-term value proposition is demonstrated by Saturn executives and Board members reinforcing their alignment with shareholders by purchasing over 525,000 common shares in the open market from January to April 2025, bringing insider buying since November of 2024 to approximately $1.8 million, or just under 950,000 shares. This personal investment by insiders, combined with our corporate buyback program, underscores leadership's belief that Saturn's operational strength and growth trajectory remain fundamentally disconnected from the current market price.

Fastest Growing Company Award

Saturn is honored to have been recognized by the Financial Times as the fastest-growing energy company across North, South, and Central America, and fifth fastest-growing company across all industries among 300 top-performing businesses. This ranking, determined by compound annual growth rate in revenue between 2020 and 2023, highlights the success of Saturn's blueprint for sustainable growth. The full list of awardees can be accessed here: Financial Times Americas' Fastest Growing Companies.

Energy Industry Directory: Saturn Oil & Gas