On June 14, 2024, Saturn Oil & Gas Inc. (Saturn), an industry-leading Canadian energy company, announced the completion of a CA$525 million acquisition of oil-weighted assets in southern Saskatchewan. The purchase price of the acquisition was funded by the proceeds of a 9.625% high-yield note offering, together with a recently closed CA$100 million bought deal subscription receipt financing.

To further support the acquisition, Saturn also secured a CA$150 million reserves-based (RBL) lending facility, led by National Bank of Canada and including ATB Financial and Goldman Sachs Bank USA, which remains undrawn at closing.

This transformational acquisition will allow the company to continue to focus on generating high rates of return on invested capital and maximizing the free cash flow from its low-decline, oil-weighted producing assets in Saskatchewan and across Alberta.

Dentons acted as Saturn’s legal counsel on the acquisition, the RBL and the subscription receipt financing, with a multi-practice team led by Jack Schroder and comprised of George Antonopoulos, Ira Cooper, Brian Kearl, Simon Kupi, Christina Winger, Matthew Cunningham, Jesse Standing, Ty Buhler, Charles Lewis and Kristen Louie.

Dentons’ advice to Saturn for this strategic acquisition builds on previous successfully completed projects, including its acquisition of Ridgeback Resources Inc., a privately held oil and gas producer focused on light oil production in Saskatchewan, in 2023.

The energy landscape is fast-changing, and Dentons continues to be an advisor of choice for Canadian and global companies in the oil and gas industry, providing innovative and strategic advice to help achieve your business objectives and meet any challenges faced by this evolving sector.

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