SPARTAN DELTA CORP. ANNOUNCES OPERATIONS UPDATE
T.SDE | 22 minutes ago
CALGARY, AB, July 7, 2025 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to provide an operations update on its first half of 2025.
OPERATIONS UPDATE
Spartan continues to execute on its corporate strategy by significantly growing corporate liquids production as it develops its West Shale Basin Duvernay (the "Duvernay") asset, while generating Free Funds Flow from its liquid-rich natural gas asset in the Deep Basin. In the first half of 2025 the Company ran a four rig capital program, successfully drilling 21.0 (17.1 net) wells, completing 15.0 (11.4 net), and bringing on-stream 11.0 (8.6 net) wells, targeting oil and liquids-rich natural gas production. Current field estimates for corporate production are approximately 40,000 BOE/d. 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.
DUVERNAY
In the first half of 2025, Spartan contracted two rigs and drilled 12.0 (9.6 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells wine-racking in both the upper and lower Duvernay. The Company is encouraged by its Duvernay acreage as initial results continue to outperform internal expectations, demonstrating the consistent and repeatable nature of its reservoir. Initial production ("IP") on its first seven wells have averaged 1,220 BOE/d (87% liquids) and IP180s on its first four wells have averaged 867 BOE/d (79% liquids).
Additionally, the Company has been approved for the Alberta Emerging Resource Program ("ERP"), resulting in an advantageous royalty rate structure on its crown Duvernay acreage. To date, Spartan has accumulated greater than 350,000 net acres (550 net sections) in the Duvernay, a 40% increase since the fourth quarter of 2024.
Spartan completed and brought on-stream 3.0 (2.1 net) wells from a licensed eight well pad at 06-04-043-03W5:
- 12-26-042-03W5 Spartan completed and brought the well on-stream in May at a lateral length of 3,834 meters (12,579 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,228 BOE/d and 87% liquids (1,028 BBL/d of crude oil, 45 BBL/d of NGLs, and 0.9 MMcf/d of natural gas).
- 09-27-042-03W5 Spartan completed and brought the well on-stream in May at a lateral length of 3,895 meters (12,779 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,315 BOE/d and 86% liquids (1,079 BBL/d of crude oil, 51 BBL/d of NGLs, and 1.1 MMcf/d of natural gas).
- 07-27-042-03W5 Spartan completed and brought the well on-stream in June at a lateral length of 3,825 meters (12,549 feet). Initial production results are exceeding internal expectations, averaging 20-day peak sales production of approximately 1,470 BOE/d and 86% liquids (1,202 BBL/d of crude oil, 58 BBL/d of NGLs, and 1.3 MMcf/d of natural gas).
Spartan has also drilled and completed 4.0 (2.8 net) wells at the 02-22-042-03W5 pad which are expected to be onstream in mid-July. Additionally, the Company has completed drilling operations on 4.0 (4.0 net) wells at the 07-15-044-03W5 pad which are expected to be completed and onstream in the third quarter of 2025.
DEEP BASIN
In the first half of 2025, Spartan drilled 9.0 (7.5 net) wells and completed and brought on-stream 8.0 (6.5 wells) in the Deep Basin that are meeting internal expectations.
- 08-21-045-11W5 & 10-20-043-09W5 Spirit River Initial gross production results averaged IP30 rates of 1,657 BOE/d (25% liquids) per well and IP90 rates of 1,254 BOE/d (24% liquids) per well.
- 03-07-045-09W5 Cardium Pad (3 Wells) Initial gross production results averaged IP30 rates of 482 BOE/d (43% liquids) per well and IP90 rates of 566 BOE/d (42% liquids) per well.
- 14-08-044-08W5 Cardium Pad (3 Wells) Brought on production mid-June. While the wells have been onstream for less than 30 days, initial results are encouraging.
In the second half of 2025, Spartan maintains the optionality to increase capital in the Deep Basin and accelerate drilling to capture the contango forward curve in natural gas prices.
ABOUT SPARTAN DELTA CORP.
Spartan is committed to creating value for its shareholders, focused on sustainability both in operations and financial performance. The Company's culture is centered on generating Free Funds Flow through responsible oil and gas exploration and development. The Company has established a portfolio of high-quality production and development opportunities in the Deep Basin and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program in the Deep Basin, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The Company is well positioned to continue pursuing optimization in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and continue growing and developing its Duvernay asset by leveraging Spartan's balance sheet and Free Funds Flow.
Spartan's corporate presentation as of July 7, 2025, can be accessed on the Company's website at www.spartandeltacorp.com.
OTHER MEASUREMENTS
All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.
This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices.
References to "oil" in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "gas" or "natural gas" relates to conventional natural gas.
References to "liquids" includes crude oil, condensate and NGLs.
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