SPARTAN DELTA CORP. ANNOUNCES OPERATIONS UPDATE

CALGARY, AB, July 7, 2025 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to provide an operations update on its first half of 2025.

OPERATIONS UPDATE

Spartan continues to execute on its corporate strategy by significantly growing corporate liquids production as it develops its West Shale Basin Duvernay (the "Duvernay") asset, while generating Free Funds Flow from its liquid-rich natural gas asset in the Deep Basin. In the first half of 2025 the Company ran a four rig capital program, successfully drilling 21.0 (17.1 net) wells, completing 15.0 (11.4 net), and bringing on-stream 11.0 (8.6 net) wells, targeting oil and liquids-rich natural gas production. Current field estimates for corporate production are approximately 40,000 BOE/d. The Company's portfolio of assets provides shareholders exposure to oil, liquids, and natural gas production and is poised to offer repeatable and economic results, presenting the opportunity to generate significant shareholder returns.

DUVERNAY

In the first half of 2025, Spartan contracted two rigs and drilled 12.0 (9.6 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells wine-racking in both the upper and lower Duvernay. The Company is encouraged by its Duvernay acreage as initial results continue to outperform internal expectations, demonstrating the consistent and repeatable nature of its reservoir. Initial production ("IP") on its first seven wells have averaged 1,220 BOE/d (87% liquids) and IP180s on its first four wells have averaged 867 BOE/d (79% liquids).

Additionally, the Company has been approved for the Alberta Emerging Resource Program ("ERP"), resulting in an advantageous royalty rate structure on its crown Duvernay acreage. To date, Spartan has accumulated greater than 350,000 net acres (550 net sections) in the Duvernay, a 40% increase since the fourth quarter of 2024.

Spartan completed and brought on-stream 3.0 (2.1 net) wells from a licensed eight well pad at 06-04-043-03W5:

• 12-26-042-03W5 Spartan completed and brought the well on-stream in May at a lateral length of 3,834 meters (12,579 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,228 BOE/d and 87% liquids (1,028 BBL/d of crude oil, 45 BBL/d of NGLs, and 0.9 MMcf/d of natural gas).
• 09-27-042-03W5 Spartan completed and brought the well on-stream in May at a lateral length of 3,895 meters (12,779 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,315 BOE/d and 86% liquids (1,079 BBL/d of crude oil, 51 BBL/d of NGLs, and 1.1 MMcf/d of natural gas).
• 07-27-042-03W5 Spartan completed and brought the well on-stream in June at a lateral length of 3,825 meters (12,549 feet). Initial production results are exceeding internal expectations, averaging 20-day peak sales production of approximately 1,470 BOE/d and 86% liquids (1,202 BBL/d of crude oil, 58 BBL/d of NGLs, and 1.3 MMcf/d of natural gas).

Spartan has also drilled and completed 4.0 (2.8 net) wells at the 02-22-042-03W5 pad which are expected to be onstream in mid-July. Additionally, the Company has completed drilling operations on 4.0 (4.0 net) wells at the 07-15-044-03W5 pad which are expected to be completed and onstream in the third quarter of 2025.

DEEP BASIN

In the first half of 2025, Spartan drilled 9.0 (7.5 net) wells and completed and brought on-stream 8.0 (6.5 wells) in the Deep Basin that are meeting internal expectations.

• 08-21-045-11W5 & 10-20-043-09W5 Spirit River Initial gross production results averaged IP30 rates of 1,657 BOE/d (25% liquids) per well and IP90 rates of 1,254 BOE/d (24% liquids) per well.
• 03-07-045-09W5 Cardium Pad (3 Wells) Initial gross production results averaged IP30 rates of 482 BOE/d (43% liquids) per well and IP90 rates of 566 BOE/d (42% liquids) per well.
• 14-08-044-08W5 Cardium Pad (3 Wells) Brought on production mid-June. While the wells have been onstream for less than 30 days, initial results are encouraging.

In the second half of 2025, Spartan maintains the optionality to increase capital in the Deep Basin and accelerate drilling to capture the contango forward curve in natural gas prices.

ABOUT SPARTAN DELTA CORP.

Spartan is committed to creating value for its shareholders, focused on sustainability both in operations and financial performance. The Company's culture is centered on generating Free Funds Flow through responsible oil and gas exploration and development. The Company has established a portfolio of high-quality production and development opportunities in the Deep Basin and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program in the Deep Basin, delivering operational synergies in a respectful and responsible manner to the environment and communities it operates in. The Company is well positioned to continue pursuing optimization in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and continue growing and developing its Duvernay asset by leveraging Spartan's balance sheet and Free Funds Flow.

Spartan's corporate presentation as of July 7, 2025, can be accessed on the Company's website at www.spartandeltacorp.com.  

OTHER MEASUREMENTS

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

This press release contains various references to the abbreviation "BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (Mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices.

References to "oil" in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "gas" or "natural gas" relates to conventional natural gas.

References to "liquids" includes crude oil, condensate and NGLs. 

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Spartan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives, strategy of Spartan; continued optimization of its Deep Basin asset, participation in the consolidation of the Deep Basin fairway and advancing and accelerating its Duvernay strategy; the Company's drilling strategy in the Deep Basin; expected drilling and completions in the Duvernay; Spartan's strategies to deliver strong, repeatable and economic operational performance and to generate significant shareholder returns; the ability of the Company to achieve drilling success consistent with management's expectations; being well positioned to take advantage of opportunities in the current business environment; to continue pursuing immediate production optimization and responsible future growth with organic drilling, and to continue to execute on building an extensive position in the Duvernay; benefiting from an advantageous royalty rate structure under the ERP on its crown Duvernay acreage.

The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including, but not limited to, expectations and assumptions concerning the business plan of Spartan, the timing of and success of future drilling, development and completion activities, the growth opportunities of Spartan's Duvernay acreage, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Spartan's properties, the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products, anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions.

Although Spartan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Spartan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations and volatility in commodity prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the risk that the new U.S. administration (i) maintains tariffs on Canadian goods, including crude oil and natural gas, (ii) increases the rate or scope of previously announced tariffs, or (iii) imposes new tariffs on the import of goods from Canada; the risk that the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including crude oil and natural gas, and that such tariffs or other measures (and/or the Canadian government's response to such tariffs or other measures) adversely affect the Canadian, U.S., and global economies, and by extension the Canadian oil and natural gas industry and the Company; demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and between Russia and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement and severe weather events and natural disasters, including fire, drought, and flooding, including in respect of safety, asset integrity and shutting-in production.

Please refer to Spartan's MD&A for the period ended March 31, 2025, and annual information form for the year ended December 31, 2024, for discussion of additional risk factors relating to the Company, which can be accessed either on Spartan's website at www.spartandeltacorp.com or under Spartan's SEDAR+ profile on www.sedarplus.ca. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

References in this press release to peak rates, 20-day and 30-day peak sales production, initial production rates, IP180s, test rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Spartan. The Company cautions that such results should be considered preliminary. Peak rates are the highest average daily sales production rate for each well excluding clean-up and downtime.

SOURCE Spartan Delta Corp.