Spartan Delta Corp. (“Spartan” or the “Company“) is pleased to provide an operations update following the successful completion of its 2024 drilling program.
OPERATIONS UPDATE
Spartan continues to execute on its corporate strategy by significantly growing oil and liquids production and acreage in the West Shale Basin Duvernay (the “Duvernay“), focusing on improving well costs and productivity, while leveraging its technical expertise in the Deep Basin to optimize operations, growing production as it continues to develop liquids-rich targets. In the fourth quarter of 2024, Spartan averaged estimated production of approximately 38,523 BOE/d (35% liquids), exceeding forecasted production. Spartan’s crude oil and condensate production increased approximately 72% when compared to the fourth quarter of 2023. The Company’s portfolio of assets provides shareholders exposure to oil, liquids, and natural gas production and is poised to offer repeatable and economic results presenting the opportunity to generate significant shareholder returns.
Spartan anticipates providing additional details regarding its preliminary 2025 operating budget and guidance on or before the release of its annual results for 2024.
DUVERNAY
To date in the Duvernay, Spartan has successfully drilled 4.0 (3.4 net) wells, including a vertical stratigraphic well, and has completed and brought on-stream 4.0 (3.4 net) wells including an existing drilled, but uncompleted well (“DUC“), all in the Willesden Green Duvernay (“Willesden Green“). Spartan is encouraged by the Duvernay as initial results have outperformed internal expectations.
In the fourth quarter, Spartan completed and brought on-stream 2.0 (1.4 net) wells from a licensed eight well pad at 05-18-042-03W5:
03-26-042-04W5 Spartan completed and brought the well on-stream in November at a lateral length of 3,560 meters (11,680 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,166 BOE/d and 90% liquids (1,019 BBL/d of 48° API crude oil, 28 BBL/d of NGLs, and 0.7 MMcf/d of natural gas).
09-05-042-03W5 Spartan completed and brought the well on-stream in November at a lateral length of 3,720 meters (12,200 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,029 BOE/d and 87% liquids (865 BBL/d of 48° API crude oil, 31 BBL/d of NGLs, and 0.8 MMcf/d of natural gas).
In the fourth quarter, Spartan acquired approximately 11,400 net acres in the Duvernay. To date, Spartan has accumulated approximately 250,000 net acres and believes the majority of its acreage is in the tier one oil and condensate rich Duvernay fairway with initial production results validating this thesis as production rates and flowing pressures are stronger than the nearest offsetting wells completed by the previous operators.
DEEP BASIN
In the fourth quarter, Spartan drilled, completed and brought on-stream 1.0 (1.0 net) well targeting the Wilrich formation.
13-31-044-10W5 with a lateral length of 2,902 meters (9,521 feet), averaged 30-day peak sales production of approximately 2,263 BOE/d and 37% liquids (216 BBL/d condensate, 625 BBL/d of NGLs, and 8.5 MMcf/d of natural gas).
Additionally, in the fourth quarter, Spartan resumed production of 1.0 (1.0 net) Wilrich well with initial test rates of approximately 24.0 MMcf/d, but intermittently shut-in production due to the depressed price of natural gas in the summer.
01-36-044-11W5 with a lateral length of 2,808 meters (9,213 feet), averaged 30-day peak sales production of approximately 4,049 BOE/d and 23% liquids (84 BBL/d condensate, 843 BBL/d of NGLs, and 18.7 MMcf/d of natural gas).
Spartan continues to monitor natural gas prices and will intermittently curtail natural gas production and delay new natural gas production if deemed necessary or accelerate drilling as a result of the contango forward curve.