Shares of Saturn Oil & Gas experienced a slight decline on Tuesday following the announcement of its plan to raise approximately 50 million Canadian dollars ($36.9 million) through an equity raising initiative. The company’s equity raise is being supported by a number of existing U.S. institutional investors.
As of the morning trading session, the shares were down 3.8% at C$2.28. Although this decrease has narrowed the year-to-date rise to 3.6%, the stock has experienced a 3.8% decrease over the last 12 months.
Investment Plans and Financing Agreement
Saturn Oil & Gas has outlined its investment plans for 2024, which includes a bought deal equity financing agreement to sell approximately 22.2 million shares at C$2.25 each. This financing arrangement will be led by four existing shareholders, namely GMT Capital and Libra Advisors.
Capital Expenditure Program
In line with its investment plans for 2024, Saturn Oil & Gas has set a capital expenditure program amounting to around C$146 million. The primary objective of this program is to sustain average production levels between 26,500 and 27,500 oil-equivalent barrels per day for the year. The majority of these funds will be allocated towards the development of its light-oil portfolio.
Strong Production Results
During December, Saturn Oil & Gas achieved an average oil and gas production of approximately 28,000 barrels of oil equivalent per day, surpassing its initial guidance of 27,000 barrels.
