CALGARY, AB, Aug. 6, 2025 /CNW/ – Spartan Delta Corp. (“Spartan” or the “Company“) (TSX:SDE) is pleased to report its unaudited financial and operating results for the three and six months ended June 30, 2025.
Selected financial and operational information is set out below and should be read in conjunction with Spartan’s unaudited interim financial statements and related management’s discussion and analysis (“MD&A“) for the three and six months ended June 30, 2025, and 2024, which are filed on SEDAR+ at www.sedarplus.ca and are available on the Company’s website at www.spartandeltacorp.com. The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading “Reader Advisories – Non-GAAP Measures and Ratios”.
OPERATIONS UPDATE
Spartan successfully completed its first half 2025 capital program, highlighting strong execution and operational discipline across its West Shale Basin Duvernay (the “Duvernay“) and Deep Basin assets. In H1 2025, Spartan ran a four rig capital program, drilling 21.0 (17.1 net) wells, completing 15.0 (11.4 net) wells, and bringing on-stream 11.0 (8.6 net) wells. During the second quarter, the Company drilled 8.0 (7.3 net) wells, completed 10.0 (7.5 net) wells, and brought on-stream 6.0 (4.7 net) wells.
Spartan is on course to meet its 2025 guidance of 40,000 BOE/d and is well-positioned for continued operational momentum entering the second half of 2025. With a strong balance sheet, disciplined capital allocation, significant liquids growth, and a deep inventory of locations, Spartan is committed to delivering significant value for shareholders while maintaining a responsible and sustainable development strategy.
DUVERNAY
In the Duvernay, the Company 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 during H1 2025. In Q2 2025, Spartan drilled 6.0 (5.4 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 benches. The utilization of wine-racking well designs has the potential to significantly increase recoveries on the Company’s acreage.
- 06-04-043-03W5 Pad Initial production results from 3.0 (2.1 net) wells have averaged IP30 rates of 1,261 BOE/d and 86% liquids per well (1,042 BBL/d of crude oil, 49 BBL/d of NGLs, and 1.0 MMcf/d of natural gas).
- 02-22-042-03W5 Pad Initial results from the Company’s most recent 4.0 (2.8 net) wells are encouraging as production rates exceed internal expectations. Current field production estimates for the first 15 days are averaging greater than 1,600 BOE/d with more than 1,300 BBL/d of crude oil and NGLs per well.
- 07-15-044-03W5 Pad Spartan has commenced completions on 4.0 (4.0 net) wells.
- 04-20-041-03W5 Pad Spartan has begun drilling operations.
In the second half of 2025, the Company anticipates drilling 5.0 (5.0 net) wells, completing 10.0 (10.0 net) wells, and bringing on-stream 14.0 (12.8 net) wells.
Spartan’s 2025 Duvernay program has benefited from a strong focus on reducing costs. These improvements stem from decreasing drilling and completion times, consistent frac placements, optimizing proppant tonnage, and reducing water usage. The Company is motivated to further reduce drilling and completion costs as it continues to build scale. Spartan’s Duvernay results have exceeded internal expectations to date, underscoring the productivity and consistency of its acreage. Current Duvernay field production estimates are greater than 9,000 BOE/d (77% liquids), a 400% increase in production in twelve months.
DEEP BASIN
In the Deep Basin, the Company drilled 9.0 (7.5 net) wells and completed and brought on-stream 8.0 (6.5 net) wells during H1 2025. In Q2 2025, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells.
- 08-21-045-11W5 & 10-20-043-09W5 Initial Spirit River production results averaged IP30 rates of 1,657 BOE/d and 25% liquids per well and IP90 rates of 1,254 BOE/d and 24% liquids per well.
- 03-07-045-09W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells averaged IP30 rates of 482 BOE/d and 43% liquids per well and IP90 rates of 566 BOE/d and 42% liquids per well.
- 14-08-044-08W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells are exceeding internal expectations, averaging IP30 rates of 1,203 BOE/d and 40% liquids per well.
- 15-25-044-09W5 Spirit River well is significantly exceeding internal expectations, with the well onstream for less than 30 days.
In the second half of 2025, the Company anticipates drilling 10.0 (9.2 net) wells and completing and bringing on-stream 9.0 (8.2 net) wells, focusing on drilling liquid-rich targets in the Cardium, Spirit River, Rock Creek, Viking, Belly River, and Wilrich formations. The Deep Basin maintains the optionality to increase capital and accelerate drilling to capture the contango forward curve in natural gas prices as the asset benefits from reduced cycle times.
SECOND QUARTER 2025 HIGHLIGHTS
- Spartan reported production of 38,513 BOE/d (36% liquids) during the second quarter of 2025.
- Spartan achieved a 151% increase in crude oil production as compared to the second quarter of 2024 and a 12% increase as compared to the first quarter of 2025.
- The Company’s operations generated oil and gas sales of $81.0 million and Adjusted Funds Flow of $47.9 million ($0.23 per share, diluted) in the second quarter of 2025, a 29% increase from the second quarter of 2024, and a 5% increase from the first quarter of 2025.
- The Company successfully executed a capital program of $83.5 million in the second quarter of 2025, of which approximately 85% was spent on drilling, completing, equipping, and tie-ins.
- In the Duvernay, Spartan drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells.
- In the Deep Basin, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells.
- Spartan has accumulated approximately 365,000 net acres (570 net sections) in the Duvernay, a 52% increase from the second quarter of 2024 and a 14% increase from the first quarter of 2025.
- Spartan continues to maintain a strong statement of financial position with Net Debt of $123.7 million resulting in a 0.7X Net Debt to Annualized Adjusted Funds Flow ratio.
- Despite volatile commodity prices, Spartan has hedges in place for the remainder of 2025 greater than current strip. As at June 30, 2025, the Company has hedged 91,065 GJ/d of its natural gas production at an average price of $2.25/GJ and has hedged 2,700 bbl/d of its crude oil and condensate production at an average price of $99.75/bbl.
The following table summarizes the Company’s financial and operating results for the three and six months ended June 30, 2025, and June 30, 2024.
|
Three months ended June 30 |
Six months ended June 30 |
|||||
|
(CA$ thousands, unless otherwise indicated) |
2025 |
2024 |
% |
2025 |
2024 |
% |
|
FINANCIAL HIGHLIGHTS |
||||||
|
Oil and gas sales |
81,004 |
73,451 |
10 |
172,245 |
157,599 |
9 |
|
Net income and comprehensive income |
33,531 |
14,371 |
133 |
28,362 |
25,566 |
11 |
|
$ per share, basic (1) |
0.17 |
0.09 |
89 |
0.14 |
0.15 |
(7) |
|
$ per share, diluted (1) |
0.17 |
0.09 |
89 |
0.14 |
0.15 |
(7) |
|
Cash provided by operating activities |
43,627 |
44,674 |
(2) |
99,895 |
92,825 |
8 |
|
Adjusted Funds Flow (2) |
47,949 |
37,177 |
29 |
93,514 |
82,850 |
13 |
|
$ per share, basic (1)(2) |
0.24 |
0.22 |
9 |
0.48 |
0.48 |
– |
|
$ per share, diluted (1)(2) |
0.23 |
0.21 |
10 |
0.46 |
0.47 |
(2) |
|
Free Funds Flow (deficit) (2) |
(35,581) |
14,623 |
nm |
(62,769) |
15,261 |
nm |
|
Cash used in investing activities |
84,393 |
101,377 |
(17) |
134,576 |
152,513 |
(12) |
|
Capital Expenditures before A&D (2) |
83,530 |
22,554 |
270 |
156,283 |
67,589 |
131 |
|
Adjusted Net Capital A&D (2) |
6,067 |
54,401 |
(89) |
6,020 |
72,468 |
(92) |
|
Total assets |
1,037,524 |
884,244 |
17 |
1,037,524 |
884,244 |
17 |
|
Debt |
66,476 |
109,040 |
(39) |
66,476 |
109,040 |
(39) |
|
Net Debt (2) |
|
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