05:21 PM EST, 01/13/2025 (MT Newswires) -- Spartan Delta ( DALXF ) on Monday released preliminary guidance for 2025 as the Western Canadian oil and gas producer speeds development of its Duvernay shale properties and said it is raising a $50 million in a bought-deal share offering.

Spartan's said it expects to spend $300 million to $325 million on capital programs this year, targeting estimated annualized production of around 40,000 barrels of oil equivalent per day, up from 38,523 boepd in the fourth quarter, while expecting to raise its output of high-value oil and natural-gas liquids to 38% of production from 33%.

The company said it expects 2025 adjusted funds flow of $219 million, up from $160 million last year.

Spartan is allocating approximately $200 million to $215 million of capital in the Duvernay in 2025, targeting an annualized production growth rate of 180%. Spartan anticipates drilling 16 (14 net) wells and completing and bringing on-stream 17 (15 net) wells in the Duvernay in 2025.

Spartan is also allocating approximately $100 to $110 million of capital, focusing on liquids-rich targets in the first half of 2025, and anticipates drilling, completing, and bringing on-stream 19 (18 net) wells in the Deep Basin region in 2025.

In addition, Spartan it is raising $50 million through the sale of 13.09 million shares priced at $3.82 each to an underwriting syndicate while granting the group a 15% over-allotment option.

The company shares closed down $0.04 to $4.00 on the Toronto Stock Exchange.