CALGARY, AB, May 7, 2024 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX:SDE) is pleased to report its unaudited financial and operating results for the three months ended March 31, 2024, as well as announce the completion of a strategic acquisition (the "Willesden Green North Acquisition") in West Shale Basin Duvernay (the "Duvernay"), advancing on its stated growth strategy. Total consideration for the Willesden Green North Acquisition is approximately $53.1 million in cash, subject to certain closing adjustments effective March 1, 2024. As a result of the Willesden Green North Acquisition, the Company has updated its guidance for 2024.   Selected financial and operational information is set out below and should be read in conjunction with Spartan's unaudited consolidated interim financial statements and related management's discussion and analysis ("MD&A") for the three months ended March 31, 2024 and 2023, which are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.spartandeltacorp.com. The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios". WILLESDEN GREEN NORTH ACQUISITION HIGHLIGHTS The Willesden Green North Acquisition includes approximately 38,000 net acres (59.5 net sections) of Duvernay rights and approximately 1,600 BOE/d (70% liquids) of production and associated infrastructure. Additionally, it includes more than 50 internally estimated net Duvernay locations in the oil and condensate rich fairway. Total consideration for the Willesden Green North Acquisition is approximately $53.1 million or 2.8 times estimated second quarter 2024 annualized net operating income (US$80/bbl WTI crude oil and $1.75/GJ AECO natural gas). In 2024, Spartan anticipates drilling and completing a minimum of one horizontal well on the newly acquired acreage. Spartan continues to execute on building an extensive position in the oil and condensate rich fairway within the Duvernay shale play and has identified significant growth opportunities on its acreage. To date, the Company has established one of the largest positions in the Duvernay, accumulating approximately 240,000 net acres (375 net sections) of Duvernay rights and acquiring approximately 2,000 BOE/d of production (68% liquids). Spartan's delineated Duvernay acreage in the Willesden Green and Pembina core development area supports approximately 300 internally estimated net locations at 400 meter well spacing across approximately 162,000 net acres (253 net sections). Throughout 2024, Spartan anticipates providing additional details on its Duvernay strategy and operating budget as it continues to execute on Duvernay consolidation and begins drilling on its Duvernay acreage. Spartan believes its Duvernay acreage is poised to offer repeatable and economic results presenting the opportunity to generate significant shareholder returns. FIRST QUARTER 2024 HIGHLIGHTS Spartan reported production of 38,533 BOE/d (32% liquids) during the first quarter of 2024, an increase from 37,664 (31% liquids) in the fourth quarter of 2023. During the quarter, the Company experienced a loss of approximately 750 BOE/d of production as a result of extreme cold weather impacting the month of January 2024. Despite the impact, Spartan achieved 2% growth in production and 6% growth in liquids production as compared to the fourth quarter of 2023. First quarter 2024 oil and gas sales totaled $84.1 million, generating Adjusted Funds Flow of $45.7 million ($0.26 per share, diluted). The Company successfully executed a $45.0 million capital program in the first quarter of 2024, continuing to focus on developing liquids-rich targets in the Deep Basin. In the Deep Basin, Spartan drilled 7.0 net wells, completed 6.0 net wells, and brought 5.2 net wells on production. Spartan continued to generate positive Free Funds Flow in the first quarter of 2024, exiting the quarter with Net Debt of $92.7 million resulting in a 0.5X Net Debt to Annualized AFF Ratio. Spartan acquired additional undeveloped acreage in the Duvernay totaling greater than 21,000 net acres for aggregate cash consideration of approximately $17.9 million. In the first quarter of 2024, Spartan rebalanced its hedging position, increasing the remainder of its 2024 AECO 7A hedge position to approximately 50% of net natural gas production at an average price of $2.77/GJ and hedging approximately 20% of its net oil and condensate production at an average price of $101.06/bbl. As at March 31, 2024, Spartan had $659 million tax pools, of which $375 million are non-capital losses. The following table summarizes the Company's financial and operating results for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023. As a result of the Montney divestitures, certain metrics in the reported three months ended financials may not be comparable year over year. (CA$ thousands, except as otherwise noted) Q1 2024 Q4 2023 % Q1 2024 Q1 2023 % FINANCIAL HIGHLIGHTS Oil and gas sales 84,148 85,832 (2) 84,148 316,212 (73) Net income and comprehensive income 11,195 110,584 (90) 11,195 86,449 (87)      $ per share, basic (a) 0.06 0.64 (91) 0.06 0.50 (88)      $ per share, diluted (a) 0.06 0.64 (91) 0.06 0.49 (88) Cash provided by operating activities 48,151 51,289 (6) 48,151 214,718 (78) Adjusted Funds Flow (b) 45,673 55,722 (18) 45,673 182,276 (75)      $ per share, basic (a)(b) 0.26 0.32 (19) 0.26 1.06 (75)      $ per share, diluted (a)(b) 0.26 0.32 (19) 0.26 1.03 (75) Free Funds Flow (b) 638 23,798 (97) 638 42,443 (98) Cash (provided by) used in investing activities 51,136 68,457 (25) 51,136 127,352 (60)      Capital Expenditures before A&D (b) 45,035 31,924 41 45,035 139,833 (68)      Adjusted Net Capital A&D (b) 18,067 32,661 (45) 18,067 769 nm Total assets 833,574 819,524 2 833,574 2,155,052 (61) Long-term debt 49,571 44,476 11 49,571 145,752 (66) Net Debt (b) 92,668 75,296 23 92,668 138,706 (33)      Net Debt to Annualized AFF Ratio (b) 0.5X 0.3X 67 0.5X 0.2X 150 Shareholders' equity 442,249 429,717 3 442,249 1,582,999 (72) Common shares outstanding (000s), end of period (a) 173,201 173,201 - 173,201 171,426 1   Q1 2024 Q4 2023 % Q1 2024 Q1 2023 % OPERATING HIGHLIGHTS AND NETBACKS (e) Average daily production  Crude oil (bbls/d) 748 570 31 748 15,034 (95)  Condensate (bbls/d) (c) 2,111 1,870 13 2,111 2,994 (29)      Natural gas liquids (bbls/d) (c) 9,442 9,196 3 9,442 13,202 (28)      Natural gas (mcf/d) 157,393 156,170 1 157,393 293,822 (46)      BOE/d 38,533 37,664 2 38,533 80,200 (52)      % Liquids (d) 32 31 3 32 39 (18) Average realized prices, before financial instruments      Crude oil ($/bbl) 92.29 95.93 (4) 92.29 99.94 (8)      Condensate ($/bbl) (c) 96.09 100.76 (5) 96.09 104.65 (8)      Natural gas liquids ($/bbl) (c) 31.04 31.22 (1) 31.04 41.91 (26)      Natural gas ($/mcf) 2.29 2.58 (11) 2.29 3.89 (41)      Combined average ($/BOE) 24.00 24.77 (3) 24.00 43.81 (45) Netbacks ($/BOE) (e)      Oil and gas sales