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Highlights

  • First quarter production averaged 38,328 BOE/d, with 36% comprised of liquids
  • Capital expenditures totaled $72.8 million, with 70% allocated to drilling and completions
  • Net debt stood at $81.9 million, resulting in a 0.4x net debt to adjusted funds flow ratio

Spartan Delta Corp. (TSX: SDE) released its unaudited financial and operational results for the three months ended March 31, 2025, reporting progress across its Deep Basin and Duvernay operations and continued execution of its capital program.

During the first quarter, the company reported average production of 38,328 barrels of oil equivalent per day (BOE/d), with 36% liquids. Crude oil production saw a year-over-year increase of 196%, and a 9% increase over the fourth quarter of 2024.

Spartan drilled 7.0 (5.6 net) wells in the Deep Basin and brought 5.0 (3.9 net) wells online. In the Duvernay, 6.0 (4.2 net) wells were drilled. Initial production results from the Duvernay exceeded internal estimates, averaging more than 1,000 BOE/d (83% liquids) over a 90-day period on the first four wells.

The company reported oil and gas sales of $91.2 million for the quarter. Adjusted Funds Flow was $45.6 million, or $0.23 per share (diluted). Capital expenditures for the quarter totaled $72.8 million, primarily allocated to drilling, completion, and infrastructure development activities.

A notable development was the construction of two water reservoirs in the Duvernay, aimed at supporting future operations while lowering completion costs. Additional infrastructure and drilling efforts in the Duvernay are underway, including multi-well pad development.

On the financial side, Spartan completed a bought deal equity financing on January 30, 2025, raising approximately $97.8 million in gross proceeds. The funds were used to repay amounts drawn on the credit facility and will support ongoing capital activity. At quarter-end, net debt stood at $81.9 million, translating to a net debt-to-annualized adjusted funds flow ratio of 0.4x.

Operational focus remains on optimizing liquids-rich assets in both the Deep Basin and Duvernay regions, while managing capital deployment within targeted financial metrics.