Spartan Delta Corp. has successfully completed a series of asset acquisitions in the West Shale Basin Duvernay in Alberta, Canada, amounting to approximately $18.4 million (CAD 25 million) in cash. The acquisitions include a substantial Duvernay land position, extensive 3D seismic assets, and around 400 barrels of oil equivalent per day (boepd) of Duvernay production. Spartan now holds approximately 137,000 gross acres, with 130,000 net acres, mostly in the volatile oil, condensate, and liquids-rich gas window of the Duvernay.

The acquired assets are situated in a region Spartan believes is poised to deliver repeatable, economic results, offering significant inventory depth. Spartan sees its entry into the West Shale Basin Duvernay as strategically timed, considering the fairway's fragmentation, undercapitalization, and growth potential supported by available egress and existing infrastructure.

Spartan emphasizes that the West Shale Basin Duvernay shares geotechnical attributes with the Kaybob Duvernay and the East Shale Basin Duvernay. Recent activity and positive well results from neighboring operators further demonstrate the commercial viability and scalability of the play.

The company plans to optimize its Deep Basin asset, participate in the consolidation of the Deep Basin fairway, and leverage its balance sheet and free funds flow to establish a new growth core area in the Duvernay.

Fotis Kalantzis, President and CEO of Spartan, views the West Shale Basin Duvernay as a unique opportunity to build a significant position at a low entry cost in an oil and condensate resource play that is fragmented, undercapitalized, and proximal to Spartan's Deep Basin asset.

For the 2024 capital budget, Spartan's board has approved an initial allocation of $95.65 million (CAD 130 million) to drill and complete 19.2 net wells, resulting in annualized production of 39,500 boepd. This represents a seven percent increase in corporate production compared to the second-half 2023 guidance. The development plan includes adding a second rig to the Deep Basin program targeting various formations.

Spartan expects capital efficiency improvements of over 20 percent in 2024 compared to 2023. Additionally, the company announced the retirement of Chief Financial Officer Geri Greenall, effective December 31, with Finance Director Ronald Williams being promoted to Vice President of Finance and CFO, effective January 1, 2024. Williams brings over 31 years of industry experience to the role.