CALGARY, AB, Jan. 5, 2026 /CNW/ - Spartan Delta Corp. ("Spartan" or the "Company") (TSX: SDE) is pleased to announce its guidance for 2026 and an operations update following the successful completion of its 2025 drilling program.

2026 BUDGET AND GUIDANCE

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 (the "Duvernay").

For 2026, Spartan intends to deploy a capital program of $410 to $470 million, delivering annualized production of 50,000 to 52,000 BOE/d (44% liquids), a 28% increase in production and an 89% increase in crude oil and condensate production from midpoint 2025 guidance.

Spartan anticipates spending $320 to $360 million on drilling, completion, equipping and tie-ins ("DCET"), bringing 38 net wells on-stream, and is allocating $60 to $80 million of capital to infrastructure, and $30 million to corporate and other.

DUVERNAY

Building off the strong success and momentum of Spartan's Duvernay results to date, the Company is allocating approximately $350 million of capital at midpoint guidance in 2026, inclusive of DCET, the construction of facilities, gathering, pipelines, and other. Spartan anticipates bringing 24 net wells on-stream and is targeting an annual production growth rate of greater than 100% in the 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 and has advanced the Company's production target to 50,000 BOE/d in the Duvernay by 2030 while maintaining a strong balance sheet of approximately 1.0x Net Debt to Adjusted Funds Flow Ratio at guidance pricing.

Spartan's Duvernay field production estimates averaged 13,872 BOE/d (78% liquids) for December 2025, a 174% increase from December 2024. Spartan's most recent production results are:

   -- 04-20-041-03W5 Pad Initial production results from 3.0 net wells have 
      averaged IP30 rates of 1,179 BOE/d and 91% liquids per well (1,043 BBL/d 
      of crude oil, 29 BBL/d of NGLs, and 0.6 MMcf/d of natural gas). 

Spartan is focused on continuing cost reductions and increasing well productivity through decreased drilling and completion times, consistent frac placements, and optimizing proppant and water usage. These initiatives have reduced Spartan's drilling and completion costs by more than 17% and increased productivity by 25% since 2024. Spartan is targeting average DCET costs of less than $12.0 million per well in 2026.

To date, Spartan has established one of the largest Duvernay positions, totaling 457,000 net acres (714 sections), an 83% increase from 2024, supporting more than 800 drilling locations. In 2025, Spartan acquired more than 204,000 net acres (319 sections) for approximately $40 million and intends to continue acquiring additional Duvernay acreage in 2026.

DEEP BASIN

In 2026, Spartan is allocating approximately $90 million of capital at midpoint guidance, inclusive of DCET, infrastructure, and other. Spartan anticipates bringing 14 net wells on-stream to maintain flat production. The Company intends to focus on development in the Belly River, Cardium, Viking, Spirit River, Wilrich, Lower Manville, and Rock Creek formations, and is prepared to expand the capital budget in response to higher natural gas prices.

Based on the success of Spartan's 2025 Deep Basin program, the Company has strategically accumulated additional acreage and has identified multiple, liquids weighted high-value targets. To date, Spartan has 243,000 net acres (380 sections) in the Deep Basin, an 87% increase since 2024. Spartan intends to commence drilling on its newly acquired Deep Basin acreage in the first half of 2026.

2026 GUIDANCE

 
ANNUAL GUIDANCE (1)          2025              2026              Variance 
                             Guidance          Guidance          Amount   % 
Average Production (BOE/d)   39,000 -- 41,000  50,000 -- 52,000   11,000    28 
     % Liquids                           38 %              44 %        6    16 
     Natural gas (mmcf/d)                 148               170       22    15 
     NGLs (bbls/d)                      9,700            12,000    2,300    24 
     Crude oil and 
      condensate (bbls/d)               5,600            10,600    5,000    89 
Benchmark Average Commodity 
Prices 
     WTI crude oil price 
      (US$/bbl)                         72.00             60.00  (12.00)  (17) 
     AECO 7A natural gas 
      price ($/GJ)                       2.20              3.00     0.80    36 
     Average exchange rate 
      (US$/CA$)                          1.43              1.37   (0.06)   (4) 
Operating Netback, before 
 hedging ($/BOE) (2)                    18.39             20.65     2.26    12 
Adjusted Funds Flow ($MM) 
 (2)                                      223               331      108    48 
Adjusted Funds Flow per 
 share ($/sh) (2)                        1.12              1.65     0.53    47 
Capital Expenditures, 
 before A&D ($MM) (2)              300 -- 325        410 -- 470      128    41 
Net Debt, end of year ($MM) 
 (2)                                      148               319      171   116 
Common shares outstanding, 
 end of year (MM)                         199               201        2     1 
 
 
(1)  The financial performance measures included in the 
      Company's guidance is based on the midpoint of the 
      average production forecast. 
(2)  "Operating Netback, before hedging", "Adjusted Funds 
      Flow", "Capital Expenditures, before A&D", and "Net 
      Debt" do not have standardized meanings under IFRS 
      Accounting Standards, see "Readers Advisories -- Non-GAAP 
      Measures and Ratios". 
 

MANAGEMENT RETIREMENT

Spartan announces the retirement of Randy Berg, Vice President, Land and Stakeholder Relations, effective February 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. The Board and management extend their sincere appreciation for his leadership and dedication and wish him all the best in his retirement.

ABOUT SPARTAN DELTA CORP.

Spartan is committed to creating value for its shareholders, focused on sustainability in both 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 across its portfolio, delivering operational synergies in a respectful and responsible manner in relation 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.

Spartan's corporate presentation, as of January 5, 2026, can be accessed on the Company's website at www.spartandeltacorp.com.

READER ADVISORIES

Non-GAAP Measures and Ratios

This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS Accounting Standards") or Generally Accepted Accounting Principles ("GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Spartan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.

The non-GAAP financial measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Spartan as key measures of financial performance, and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS Accounting Standards.

The definitions below should be read in conjunction with the "Non-GAAP Measures and Ratios" section of the Company's MD&A dated November 4, 2025, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures.

Operating Income and Operating Netback

Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing, and other business expenses. "Operating Income, before hedging" is calculated by Spartan as oil and gas sales, net of royalties, plus processing and other revenue and net commodities purchased margin, less operating and transportation expenses. "Operating Income, after hedging" is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments. The Company refers to Operating Income expressed per unit of production as an "Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Spartan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.

Adjusted Funds Flow and Free Funds Flow

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January 05, 2026 08:00 ET (13:00 GMT)