Copyright of the Daily Oil Bulletin 2018
Saturn Increases Land Position
Saturn Oil & Gas Inc. was a successful bidder on two sections of land in the recent Saskatchewan Crown land sale.
This brings the company's total land holding to 15 gross sections (10.5 net). The company has also closed a pooling agreement with a major Viking producer to develop its Whiteside property.
The two sections acquired in the land sale were divided into two separate non-contiguous parcels. The first parcel is one section in the Flaxcombe area with rights from the base of the Colorado Group to the top of Precambrian. The section has existing wells drilled through the target Success formation that shows favourable reservoir in petrophysical logs. The second parcel is one section in the Flaxcombe area with rights from base Colorado Group to top Precambrian.
This section has adjacent producing vertical wells in the Success formation. The company is currently evaluating available 3D seismic on the section for the placement of horizontal wells in the Success formation.
Saturn has also closed a pooling agreement with a major Viking producer on its Whiteside land holdings. The agreement will allow Saturn to maintain a 50 per cent working interest on the land while relinquishing operatorship to the partner. This agreement will allow for the drilling of extended reach horizontal Viking wells that have been dominant in the area.
“The pooling agreement on our Whiteside property was the perfect opportunity for our company to strengthen relationships with major Viking producers in the area. Their experience in the Viking field and low operating costs allow Saturn to maintain a working interest in the production while focusing on development of our Flaxcombe property,” stated Scott Newman, chief operating officer with the company.