Disciplined $180 to $190 million development capital budget retains flexibility and targets quick payback opportunities
Forecast average production of 39,000 to 41,000 boe/d, with ability to quickly ramp up capital and volumes should prices strengthen
Free funds flow allocated to debt repayment and share buybacks, with forecast free funds flow yield of 25% to 35%
Up to 1/3 of total development capital allocated to high-return, rapid payback open hole multi-lateral ("OHML") drilling

Saturn Oil & Gas, a light oil-weighted producer focused on unlocking value through the development of their extensive inventory of assets in Saskatchewan and Alberta, today announces their 2026 capital budget and guidance.

The Company intends to continue allocating capital prudently through 2026, with a development capital budget range of $180 to $190 million assuming US$60 per barrel WTI, positioning Saturn to deliver 2026 average production between 39,000 and 41,000 boe/d, weighted approximately 81% to oil and liquids. In light of the prevailing commodity price environment, the 2026 Budget is structured to prioritize drilling targets with the highest potential returns, preserve the value of our asset base through disciplined capital allocation and optimize free funds flow generation. The company's program in 2026 can be scaled up or down quickly should commodity prices fluctuate, enabling the Company to retain significant flexibility across a variety of price scenarios. Consistent with their Blueprint strategy, Saturn intend to utilize incremental free funds flow for ongoing debt repayment, share buybacks or potential accretive tuck-in acquisitions at attractive metrics should opportunities arise.

"In response to the near-term WTI price outlook, we are taking a prudent approach to our 2026 capital spending profile, which is 27% lower than our revised September 2025 guidance, while our production is anticipated to average only 5% below that revised guidance. This is due to the Company's track record of exceeding type curves, reducing costs, and protecting margins through operational synergies and disciplined capital deployment," said John Jeffrey, Saturn's Chief Executive Officer. "Our mid-life cycle asset base requires minimal infrastructure spending and has shallower relative decline rates, helping to keep maintenance capital lower. Even in the current commodity price environment, we continue to see compelling returns from our development program, specifically the OHML and conventional Mississippian and Spearfish wells. Our commitment to generating resilient free funds flow enables us to continue reducing leverage and to remain nimble and opportunistic."

2026 BUDGET HIGHLIGHTS

• $180 to $190 million development capital expenditure budget, with nearly 85% directed to drilling, completion, equip and tie-in activities; approximately 5% to waterflood initiatives; and the balance to production optimization initiatives, facilities, land and seismic.
• 39,000 to 41,000 boe/d forecast average 2026 production (~81% liquids).
• Drill 105 (78 net) wells targeting the highest return locations in the current price environment, which are concentrated in our Southeast Saskatchewan ("SE SK") Bakken and conventional Mississippian development areas, along with our Central Alberta Cardium.
• Up to 33% of development capital expected to be directed to high-return and capital efficient OHML locations in SE SK.
• Budget assumptions of US$60.00 WTI, US$4.00 MSW-WTI differential, US$13.00 WCS-WTI differential, C$3.00/GJ AECO and 0.72x CAD/USD assumptions.

Consistent with prior years, Saturn's 2026 Budget is expected to be weighted to the second half of the year, with over 40% anticipated to be deployed in Q3, almost 30% in Q4, 20% weighted to Q1 with the balance in Q2, reflecting the seasonal impacts of spring break-up. As a result of this cadence, coupled with the production momentum carried through from Q4/25, Saturn anticipates volumes will be highest through the first half, declining through the second half as a result of lower spending in the first half.

Free funds flow is anticipated to be highest in Q2 driven by lower capital spending during that period. Given the Q3/Q4 weighted capital program, the Company can be nimble in adjusting our development program in response to market conditions. Saturn intends to apply our Blueprint strategy and focus on reducing net operating expenses through 2026 following the integration of the tuck-in assets that were acquired in the latter half of 2025. 

In addition to the above forecasts, Saturn anticipates approximately $15 million in capitalized administrative expenses; $19 million of asset retirement obligations and $16 million primarily related to lease payments associated with a gas processing contract. The Company does not anticipate being taxable in 2026.

2026 CAPITAL PROGRAM OVERVIEW

Southeast Saskatchewan ("SE SK")

• Approximately 60% of total 2026 Budget allocated to this area, with 77 (61.0 net) wells planned.
• Up to 33% of 2026 Budget directed to OHML drilling, with 32 (21.8 net) OHML locations targeted, an increase of 60% over 2025 OHML drills.
• Targeting 23 (21.0 net) conventional Mississippian wells, featuring low drilling costs and high deliverability, leading to some of the company's highest returns and most capital efficient opportunities.
• Expand the Bakken waterflood at Creelman and build on 2025 development with the drilling of three re-pressurized wells in 2026, along with the conversion of seven producers to injectors that will support the planned drilling program in 2027. Approximately 5% of total 2026 capital is earmarked for our waterflood program, reducing the number of primary wells we need to drill, protecting our inventory by lowering decline rates, and supporting Saturn's long-term sustainability and resilience across commodity price cycles.
• In Q1/26, Saturn anticipates running four rigs in SE SK, three of which are dedicated to OHML locations in the Midale, Viewfield Bakken and on lands acquired in August of 2025, with the fourth rig targeting conventional Mississippian development.

Central Alberta Cardium Development

• Approximately 20% of the 2026 Budget is allocated to continued Cardium development at Lochend along with development at West Pembina to build on the company's success over the past 15 months, which includes drilling both the longest and fastest wells ever drilled in the Cardium.
• Saturn is planning two multi-well pads featuring extended reach horizontals up to 3-miles in this area, including one seven well pad and an additional six well pad.

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