Saturn Oil & Gas Inc., Calgary, has completed the acquisition of Ridgeback Resources Inc., a privately held oil and gas producer focused on light oil production in Saskatchewan and Alberta, in a cash and stock transaction worth about $516 million (Can.).
The deal adds about 17,000 boe/d of additional oil and natural gas production (140% increase) and a target run rate production of over 30,000 boe/d (82% crude oil and NGLs).
The deal adds to the company’s existing Oxbow asset light oil production in southeast Saskatchewan with a portfolio of development opportunities, the company said in a release Feb. 28. Saturn now holds total inventory of over 940 (gross) booked drilling locations, he said. said John Jeffrey, Saturn’s chief executive officer.
With the completion of the acquisition, about 40% of Saturn's production will be in Alberta, offering play diversification of economic, light oil focused drilling, the company said. Each of the Alberta areas have high working interests: Cardium (68%), Deer Mountain (100%), and Kaybob (100%), and have extensive operated infrastructure in place to drive low operating costs and realize high cash netbacks.
