Spartan Delta forecasts 2026 production of 51,000 boe/d

Executive Summary

• Spartan Delta Corp. released its 2026 financial and operational guidance, targeting a capital program of $410M–$470M to drive significant production growth in the West Shale Basin Duvernay.
• The company anticipates bringing 38 net wells on-stream in 2026, aiming for annualized production of 50,000–52,000 boe/d (a 28% increase) and a 100%+ growth rate specifically in the Duvernay.
• Management announced the retirement of VP Randy Berg effective Feb. 28, 2026, while continuing to expand acreage holdings in both the Duvernay and Deep basin plays.

Key Details

• 2026 Capital Program: Total budget of $410 million to $470 million.
  • Drilling, Completion, Equipping, and Tie-ins (DCET): $320 million to $360 million.
  • Infrastructure: $60 million to $80 million.
  • Corporate/Other: $30 million.
• Production Targets:
  • Annualized production of 50,000 to 52,000 boe/d.
  • 44% liquids content.
  • 28% increase in overall production and 89% increase in crude oil and condensate production compared to midpoint 2025 guidance.
• Duvernay Basin Focus:
  • Midpoint capital allocation of ~$350 million.
  • Targeting 24 net wells on-stream.
  • Targeting >100% annual production growth rate.
  • Long-term target: 50,000 boe/d in Duvernay by 2030.
  • Balance sheet health: ~1.0x net debt to adjusted funds flow ratio at guidance pricing.
  • Recent Performance: December 2025 field production averaged 13,872 boe/d (78% liquids), a 174% increase from Dec 2024.
  • Well Performance: Recent pad (04-20-041-03W5) IP30 rates averaged 1,179 BOE/d and 91% liquids per well (1,043 BBL/d crude, 29 BBL/d NGLs, 0.6 MMcf/d gas).
  • Cost Efficiency: DCET costs reduced by >17% and productivity increased by 25% since 2024; targeting average DCET costs of <$12.0 million per well in 2026.
  • Acreage: Total 457,000 net acres (714 sections), supporting >800 drilling locations. Acquired >204,000 net acres in 2025 for ~$40 million; intends to continue acquisitions in 2026.
• Deep Basin Focus:
  • Midpoint capital allocation of ~$90 million.
  • Targeting 14 net wells on-stream to maintain flat production.
  • Focus on Belly River, Cardium, Viking, Spirit River, Wilrich, Lower Manville, and Rock Creek formations.
  • Potential to expand capital budget if natural gas prices rise.
  • Acreage: 243,000 net acres (380 sections), an 87% increase since 2024. Drilling on newly acquired acreage to commence in H1 2026.
• Financial Sensitivities (2026 Guidance Assumptions):
  • WTI Crude: +/- $5.00/bbl impacts adjusted funds flow by +/- $22 million.
  • AECO Gas: +/- $0.25/GJ impacts adjusted funds flow by +/- $9 million.
  • FX Rate: +/- $0.05 US$/CA$ impacts adjusted funds flow by +/- $11 million.

Notable Quotes

• "Spartan is pleased to provide its financial and operating guidance for 2026 focused on delivering significant light oil and condensate production growth as it accelerates development in the West Shale Basin Duvernay."
• "Spartan's Duvernay performance underscores the robust productivity, consistency and scalability of its acreage. These results reinforce that Spartan's Duvernay asset is one of the most compelling emerging oil-weighted growth opportunities in Western Canada..."
• "Spartan announces the retirement of Randy Berg, vice-president, land and stakeholder relations, effective Feb. 28, 2026. Mr. Berg has been an integral part of Spartan's success and growth since inception and has contributed to the Spartan franchise for more than a decade."