While slumping oil prices continue to squeeze most everyone in the industry, this nimble Canadian-based junior is positioned for impressive success in Saskatchewan province, where lost-cost exploration and drilling translates into unique profits for investors.

Saturn Minerals (TSXV:SMI) may be a junior player, but there is nothing junior about its acreage. The company holds two of the largest oil and gas permits in the province, including the 253,000-acre Little Swan play and Bannock Creek in the prolific Williston Basin.

Little Swan is an extension of the massive oil-baring formations of North Dakota and Montana, and when Saturn starts drilling its first exploration well this quarter at Bannock Creek, all eyes will be on Little Swan—because what comes up in Bannock will immediately raise the value of this huge play.

But bar far the biggest selling point here is this: These plays represent some of the lowest cost production in North America. There is no need for expensive horizontal drilling or hydraulic fracturing. In fact, drilling to 1,200 meters will cost only $500,000. Better yet, costs are projected to come in as low as $20 per barrel.

At these prices, not only will Saturn survive the oil price downturn, but its investors can make a great profit.

Small wildcat explorers like Saturn have the clear advantage in this oil price environment because they rely on investor capital rather than oil sales. Unlike their larger competitors, they are flexible and immune from drilling cut-backs.

But it’s not just Saturn’s size that makes it a gem despite the oil-price environment. Its management has proven exceptionally visionary and potential investors are taking notice. While other small companies operating in Canada--such as Questerre Energy (TSX: QEC), Tourmaline Oil Corp (TSX: TOU) and Cenovus Energy (TSX: CVE)--are seeing challenges to their capital resources, not so Saturn. Questerre, operating in Canada’s Montney shale, says the lower oil prices means longer payout periods, making it difficult for the company to fund drilling.

The key to profitability for Saturn is cheap, conventional drilling plays that yield returns, so while other companies in big shale plays are feeling the weight of drilling expenses and can’t turn a profit unless oil is in the $60-$80 range, Saturn is bringing it home in North America’s hottest wildcat venue.

By. James Burgess for The Hydrocarbon