Spartan Delta's Duvernay Bet Ignites Explosive Oil Growth

CALGARY, AB – February 23, 2026 – Spartan Delta Corp. has decisively cemented its pivot from a natural gas producer to an oil-focused powerhouse, reporting record-breaking 2025 results fueled by an aggressive and highly successful campaign in Alberta's prolific Duvernay formation. The Calgary-based company not only surpassed its production guidance but also doubled its net income and dramatically accelerated its long-term growth targets, signaling its ambition to become a dominant force in one of North America's premier shale plays.

The company's year-end report, released today, paints a picture of a "transformational year," a sentiment echoed by its leadership. The strategic shift towards higher-value liquids has yielded spectacular results, with annual crude oil production skyrocketing by an astounding 235% compared to 2024. This performance has emboldened the company to advance its goal of producing 50,000 barrels of oil equivalent per day (BOE/d) from its Duvernay asset by 2030, a clear testament to its operational success and the quality of its holdings.

A Two-Pronged Strategy for Growth and Resilience

At the heart of Spartan's success is a dual-asset strategy that balances high-octane growth with financial stability. The company's Duvernay asset is the engine of its oil-weighted expansion, while its established Deep Basin asset provides a resilient foundation of stable cash flow, even in a challenging natural gas market.

"2025 represents a transformational year for Spartan as we decisively transitioned into an oil-weighted Duvernay growth company, delivering significant liquids growth while maintaining a strong balance sheet and improving capital efficiencies across our drilling program," commented Fotis Kalantzis, President and CEO of Spartan, in the company's official announcement.

This strategic balance is evident in the company's capital allocation and operational focus. While the Duvernay commands the lion's share of investment to drive liquids growth, the Deep Basin continues to be a reliable contributor. This asset not only generates steady funds but also offers multi-zone development optionality, providing flexibility to adapt to shifting commodity prices. This approach allows Spartan to fund its ambitious growth plans organically while keeping its financial house in order.

The company ended 2025 with a conservative Net Debt to Annualized Adjusted Funds Flow Ratio of just 0.6x, an enviable position that provides significant financial firepower. With net debt of $203.9 million against a $450 million credit facility, Spartan has ample capacity to execute the largest capital program in its history in 2026.

The Duvernay Dynamo: Building a Production Powerhouse

Spartan's results confirm the Duvernay's reputation as one of Canada's most compelling oil opportunities. The company's production from the play hit a record 14,074 BOE/d in December 2025, a staggering 178% increase from the previous year. This output is exceptionally valuable, comprising 78% high-demand liquids like crude oil and condensate.

This explosive growth is no accident. It's the result of a deliberate and aggressive expansion coupled with remarkable gains in operational efficiency. In 2025, Spartan strategically expanded its footprint in the play by 83%, amassing one of the largest positions in the Duvernay at 457,000 net acres. This vast land base provides a multi-decade inventory of over 800 high-quality drilling locations, underpinning the company's long-term vision.

Crucially, Spartan is getting more oil out of the ground for less money. The company reported that in 2025, its Duvernay well productivity increased by 25% and lateral lengths grew by 19%, all while drilling and completion costs fell by more than 17% compared to the prior year. These efficiency gains are the key to unlocking the economic potential of the shale play and are the foundation upon which the accelerated 2030 production target is built.

The company’s 2025 drilling program saw 14 net wells brought on-stream in the Duvernay, averaging an impressive initial 30-day production rate of approximately 1,400 BOE/d, with 1,000 barrels per day of that being valuable crude oil.

Charting an Ambitious Course for the Future

With a successful 2025 in the rearview mirror, Spartan Delta is pressing its advantage. The company has already launched its 2026 capital program, deploying four rigs—three in the Duvernay and one in the Deep Basin—to continue its growth trajectory. The planned budget of $410 million to $470 million is heavily weighted towards the Duvernay, with approximately $350 million earmarked to bring 24 net wells online and drive annual production growth of over 100% from the play.

This investment is designed to propel the company towards its ambitious 50,000 BOE/d target by 2030. While a bold goal, it is backed by a track record of execution, a massive and de-risked inventory, and a robust balance sheet. The company's ability to navigate the volatile commodity price environment of 2025, increasing its operating netback by 28% to $14.94/BOE, demonstrates a resilience that will be critical for achieving its long-term objectives.

As Spartan continues to delineate and develop its vast acreage in areas like Willesden Green and Gilby, its activities are set to have a significant impact on the regional energy landscape. By proving out the scalability and economic viability of its Duvernay position, the company is not only creating shareholder value but also reinforcing the Duvernay's role as a cornerstone of Canada's future energy production. Operations for 2026 are well underway, underscoring a commitment to turning ambitious targets into tangible barrels.