Santa Ynez Unit (SYU) Asset Overview - SYU is a massive oil-weighted resource with three offshore platforms and wholly-owned onshore production treatment facilities[7] - SYU produced at a rate of 45,000 BOE/D at shut-in in 2015 and restarted production on May 15, 2025[7] - The asset has a significant production history, with over 671 MMBoe produced between 1981 and 2014[24] - The remaining total net estimated contingent resources are 646 MMBoe[22] Operational Plans and Options - Sable is pursuing two options to extract value from SYU: purchasing an Offshore Storage and Treating Vessel (OS&T) or utilizing the Las Flores Canyon and Pipeline System[14] - Option 1 (OS&T) is estimated to require approximately $450 million in capital[32] - Option 1 (OS&T) is projected to achieve cost savings of approximately $10/BOE relative to Option 2, potentially saving over $175 million annually assuming 50 MBOE/D of net production[56] - Option 2 (Pipeline) could potentially increase California domestic crude supply by approximately 15%[32] Financial Guidance and Projections - Under the OS&T option, Sable projects net average daily production of 45,000-55,000 BOE/D by Q1 2027[56] - Under the Pipeline option, Sable projects net average daily production of 45,000-55,000 BOE/D by Q1 2026[56] - Total Capex for Option 1 (OS&T) in FY2026 is estimated to be $425-$475 million[56] - Total Capex for Option 2 (Pipeline) in FY2026 is estimated to be $240-$270 million[56]