Saturn Oil & Gas Inc. Announces Initial Production Results of First OHML Bakken Well Above Expectations and Updated Debt Covenant

Calgary, Alberta--(Newsfile Corp. - January 4, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) ("Saturn" or the "Company") is pleased to announce the Company's first Open Hole Mult-Lateral ("OHML") Bakken well drilled in the Viewfield area of Southeast Saskatchewan, 101/01-07-011-06W2 ("Viewfield 01-07"), had initial 30-day average production ("IP30") of approximately 233 bbls/d of light oil, which is 49%¹ above the Company's expected IP30 type curves for OHML Bakken wells drilled in the area. The Viewfield 01-07 was drilled with eight open hole, unstimulated lateral legs for a capital cost of approximately $2.3 million, for an implied capital efficiency of $9,870/bbl/d.

"The strong initial production and low early declines of the Viewfield 01-07 well are excellent indications of the enhanced economics being driven by this new drilling innovation in Canada's oil and gas sector," commented Justin Kaufmann, Chief Development Officer. "OHML wells have a smaller surface footprint and require less water compared to typical drilling and completion techniques used in developing Bakken formations. The superior economics of OHML drilling allows access to light oil resources previously not considered economically viable and opens a vast new fairway for Saturn's future development."

In late December 2023, Saturn brought onto production its second OHML Bakken well, 102/01-22-011-06W2 ("Viewfield 01-22") which was drilled with seven open hole, unstimulated lateral legs. Viewfield 01-22 is experiencing strong fluid inflow with high oil cuts and will have IP30 results available for late January 2024. Saturn has identified up to 100 OHML drilling locations in the Viewfield area on lands where Saturn holds mineral rights.

Debt Covenant

Saturn has entered into an amendment to its credit facility to reduce its "current ratio" covenant for the period ended December 31, 2023. The amendment allowed the Company the financial flexibility to complete its robust Q4 2023 development plans. A copy of the amendment will be posted on the Company's SEDAR+ profile at www.sedarplus.ca.

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Saskatchewan and Alberta that provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn's goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn's shares are listed for trading on the TSX under ticker 'SOIL' on the Frankfurt Stock Exchange under symbol 'SMKA' and on the OTCQX under the ticker 'OILSF'.

Further information and a corporate presentation are available on Saturn's website at www.saturnoil.com.

Saturn Oil & Gas Investor & Media Contacts:

John Jeffrey, MBA - Chief Executive Officer
Tel: +1 (587) 392-7900
www.saturnoil.com

Kevin Smith, MBA - VP Corporate Development
Tel: +1 (587) 392-7900
[email protected]

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¹ Previously disclosed type curve for the Company's OHML Bakken wells was stated at 170 bbls/d, which represents initial day-one type curve. Guidance IP30 type curve for the Company's OHML Bakken wells is 156 bbls/d.

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