CALGARY — Calgary-based Saturn Oil & Gas has agreed to acquire privately held Corex Resources in a deal valued at approximately C$302 million, increasing the company’s footprint in southwestern Manitoba and adding about 7,000 barrels per day of light-oil production, the company announced.
What the transaction involves
The purchase will be completed through a plan of arrangement under which Saturn will pay about C$252 million in cash and issue shares deemed to be worth C$50 million, using a 20-day volume-weighted average to value the equity portion. Saturn said the cash component will be funded with available cash and a draw on its credit facility.
Assets included in the deal are concentrated in southwest Manitoba, adjacent to Saturn’s southeast Saskatchewan core area. The properties cover around 84,000 net acres with a working interest of roughly 96 per cent, according to the company.
Production and financial metrics
Saturn estimated run-rate net operating income at current strip pricing of C$192 million, which equates to a purchase multiple of about 1.6 times NOI. The acquisition price represents approximately 82 per cent of the proved developed producing net present value discounted at 10 per cent, which Saturn places near C$370 million.
| Metric | Value |
|---|---|
| Purchase price | C$302 million |
| Cash portion | C$252 million |
| Equity portion | C$50 million (deemed) |
| Added production | ~7,000 barrels per day |
| Net acres | ~84,000 |
Drilling inventory and growth targets
The acquisition brings a substantial list of identified drilling opportunities. Saturn reported 323 gross (279 net) identified locations, including 206 gross (189 net) booked spots. The company also cited nearly 30 net unbooked open-hole multi-lateral locations in the Lodgepole formation at Virden and about 25 net in the Spearfish.
As a result of the deal and its ongoing organic growth forecast, Saturn raised its 2026 exit production target to 54,000–56,000 boe/d (barrels of oil equivalent per day), while maintaining full-year average guidance of 43,000–44,000 boe/d. Management said it aims to reach a net debt to adjusted EBITDA ratio under one times by the end of 2027 and expects roughly C$6 million in annual synergies from the combination.
“Combined with our forecast 10% organic growth this year, the Acquisition positions Saturn for a strong 2027,”
That comment came from Saturn chief executive John Jeffrey in the company release accompanying the agreement.
Support, approvals and next steps
Shareholders holding more than 72 per cent of Corex shares have already signed support agreements, Saturn said. The transaction remains subject to court, regulatory and stock exchange approvals, and the company expects to close in December.
Saturn added it will issue its 2027 capital budget and guidance around the time of closing or shortly thereafter, signalling how the newly acquired Manitoba assets will be integrated into its spending plans.
Local implications
For communities in southwest Manitoba, the deal adds concentrated light-oil production and a sizeable development inventory that could translate to ongoing drilling, service activity and local employment opportunities tied to field operations and contractors. The assets’ proximity to Saturn’s southeast Saskatchewan operations may also improve operational efficiencies and pipeline or service logistics across the provincial border.
- Added production: roughly 7,000 bpd of light oil
- Acreage: about 84,000 net acres in southwest Manitoba
- Drilling inventory: 323 gross (279 net) identified locations
Saturn has said it expects to release further financial details and operational plans once the deal clears the required approvals. For now, the acquisition marks a sizeable capital move into Manitoba oil plays by a publicly traded Calgary producer, and will be watched closely by regional stakeholders and industry suppliers.
(Reporting from company filings and the Saturn news release.)
