Saturn Oil to Buy Corex Resources for C$302M, Lifting 2026 Exit Output to 54K-56K boe/d
OILSF has more than doubled off its 52-week low of $1.63.
Summary
Saturn agreed to acquire privately held Corex Resources for C$302M, split between C$252M cash and C$50M in Saturn shares priced off the trailing 20-day VWAP. The target brings roughly 7,000 bbl/day of light oil-weighted production in Manitoba plus undeveloped open-hole multi-lateral locations not yet in the reserves booking. Management frames the price as cheap: 1.6x net operating income and about 82% of PDP NPV10, with the barrels generating $82/bbl netbacks and an estimated $192M of NOI over the next 12 months at current strip pricing. Saturn raised its FY2026 exit production target to 54K-56K boe/day while keeping full-year average guidance at 43K-44K boe/day and holding the 2027 exit net debt/adjusted EBITDA target under 1x. The cash-heavy structure is the key risk to weigh against the accretion — watch how the C$252M is funded and whether leverage stays inside that sub-1x commitment.
At the time of this announcement, OILSF was trading at $5.70 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $1B. The 52-week trading range was $1.63 to $5.74. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.