Saturn Oil & Gas Inc.

Hello, and thank you for joining Saturn Oil's fourth quarter 2023 financial operations investor update. My name is Kevin Smith, Vice President, Corporate Development, and I'll be your moderator for this webcast. We'll start with a presentation for management, and following that, we'll be happy to address any of your questions and take your comments. You can submit your questions through the Q&A button at the bottom of your screen. Joining us today is John Jeffery, our Chief Executive Officer, Scott Sanborn, Chief Financial Officer, Justin Kaufman, our Chief Development Officer, and Grant McKenzie, our Chief Legal Officer. I'll now hand the webcast over to our CEO, John Jeffery. Excellent. Thanks, Kevin.

Good morning, everyone. Can you hear me all right? Yes, I can. Perfect. Well, that's excellent. And the last time we had a couple of technical issues. Well, thanks everyone for joining today. Excited to go over a quarter and our full year last year. The fourth quarter of 2024 was a tremendous period for Saturn Oil, where in the first time in company's history, we had three drill rigs active, developing light oil in each of the company's four core business units across Alberta and Saskatchewan. Oil and gas production averaged over 27,000 barrels a day in Q4, which was an increase of 115% year-over-year. This record level of production contributed to our second consecutive quarter of posting over $100 million of adjusted EBITDA. This is above our forward guidance for 2024, where our targeting EBITDA is between $350 and $370 million. We expect Saturn to generate a return on invested capital of over 55%. which when compared to our peer group, averages closer to 30. Driving Saturn's outstanding return on continued excellent results from the drill bit is Justin. Driving our excellent return is a continued success of the drill bit, which Justin will detail a little more in a moment. I will highlight Saturn drilled its first two open hole multilateral Bakken wells through November and December last year. which came online with initial IP30 numbers 14% above our type curve expectations. These multilateral wells were some of the most economic wells drilled last year. This exciting new drilling technique is opening up additional drilling inventory on lands previously thought economic, so this is a big win for SATR. We remain committed to rapid debt repayment and allocated $50 million of cash flow from operations in Q4 to principal repayments. for total loan repayment of $164 million in 2023. Subsequent to year end, Saturn has made an additional $50 million of principal repayments already in 2024 for a total of $215 million of debt repayment since the start of last year. And this all aligns with our strategy of rapid debt repayment while maintaining corporate production levels. And this should continue to result in value creation for our shareholders throughout 2024. In January of this year, Saturn released its year-end reserves, highlighted by more than doubling of its total proof plus probable reserves to 145 million BOE, comprised of 82% oil and liquids. The net present value discounted at 10% of Saturn's PDP, or proof developed producing reserves, amounted to a value of $1.4 billion, which incorporates year-end net debt, Saturn's PDP net asset value is approximately $6.10 per basic share. This strong net asset value gives us comfort that there is considerable value backing every Saturn share. And we look forward to enhancing that value going forward with Saturn's industry-leading return on invested capital. And finally, Saturn continued its commitment to environmental stewardship with investments in reducing CO2 emissions and decommissioning older wells that have come to the end of their economic life. In 2023, Saturn invested $11 million in reclamation expenditures, funding the abandonment of 114 wells. That amounts to the cleanup of two wells for every one new well that Saturn drilled or participated in last year. Safety and protecting the environment are an important part of our daily operations. And for now, I'll turn it over to Justin Kaufman, our Chief Development Officer, for more detail on how our capital expenditure program went last year. Justin.

Thank you, John. As John mentioned, Q4 was the busiest development period in Saturn's history. We drilled 19 wells across each of Saturn's four core areas for $57 million of capital expenditures. In total for 2023, Saturn drilled 59 gross horizontal wells with a 100% success ratio. The development of the Viking light oil resource in West Central Saskatchewan was a highlight of the 2023 program. Saturn contracted a third rig in Q4 to drill an additional four Viking wells. 100% working interest to Saturn, bringing the total 2023 drill count to 19 gross Viking wells. Saturn's 2023 new Viking wells had an average IP30 rate of 98 barrels per day. of light oil and strongly outperformed our type curve expectations by over 40%. Saturn has improved its Viking new well productivity year over year as we have focused development on our two best performing areas, Herschel and Plato. In these two key areas, Saturn has effectively expanded our understanding of the boundaries of the light oil resources, particularly in the Plato area, where we shot new seismic in 2023 to better understand the structural features of the area. This helped us add dozens of new de-risk development locations to our reserve bookings and inventory. Southeast Saskatchewan was a strong area for growth in 2023, where the company increased production by 67% compared to 2022. Southern continued successful conventional development in the area with 11 Mississippian and six Triassic aged reservoirs wells drilled. These were predominantly in the Frobisher and Spearfish formations, which outperformed our type curve expectations by 17%. Also, a fantastic addition to our Southeast Saskatchewan capital plan 2023 was the Bakken program, which was Saturn's first development into this prolific light oil horizon. As John mentioned, the 2023 Bakken program yielded outstanding results, exceeding our expectations. In total, Saturn drilled seven stimulated Bakken wells last year in the Greater Viewfield area with IP30 rates of 110 barrels per day of light oil. With over 400 wells in our deep inventory of development locations, we expect the Bakken to be a strong contributor to future development programs, including this year, where we expect to drill up to 10 Bakken wells, including two to three open hole multilateral wells. For the open-hole multilateral wells currently underway, we are now drilling two-mile laterals compared to the one-mile laterals that were drilled last year. We believe the extended laterals will save on drilling costs and enhance the economics of this new drilling technique even further. Saturn's success last year in the Balkan, Spearfish, and Frobisher is strong validation of the multi-zone potential in Saturn's core area in Southeast Saskatchewan, where we have a deep inventory of de-risk locations. In North Alberta, Saturn drilled a four-well pad in the Cabob area targeting Montney light oil with 100% working interest. This first pad delivered an IP30 rate of just over 1,250 barrels per day in aggregate. The Cabob wells met our expectation for Montney type curve for this area, and we will look to drill another four-well pad this year. In central Alberta, Saturn rig released five operated cardium wells in 2023 that have IP30 results. Again, these results met company expectations and will continue to be a big part of Saturn's development story where we plan on drilling eight additional wells in 2024. In total, Saturn had a very successful 2023 drilling program while scaling up development efforts across its four business units. The depth of our continual expanding drilling inventory, with over 1,500 identified booked and unbooked locations, speaks to the sustainability of our high cash-flowing light oil production base. For more details on Saturn's 2024 development plans, please visit SaturnOil.com, where we have posted our 2024 guidance presentation. I will now pass the webcast over to Scott Sanborn, CFO, for a financial overview of the court.