TSX Shariah screener · October 2026

Is Saturn Oil & Gas Inc. (SOIL) Halal?

FAIL

Saturn Oil & Gas Inc. · TSX: SOIL · Energy

The short answer

Saturn Oil & Gas Inc. (TSX: SOIL) is a FAIL. The business gate passes: it is a conventional oil & gas producer in Western Canada (41,447 boe/d in Q2 2026, 81% oil and liquids), with no prohibited segments. The income gate passes: separately disclosed interest income of C$1.162M is about 0.32% of Q2 2026 revenue of C$358.7M, well under the ~5% ceiling. The debt gate fails decisively: total interest-bearing debt of C$817.7M (including leases) is about 65.4% of the ~C$1.25B market cap (180.0M shares × C$6.94, October 1, 2026), far above the ~33% ceiling — excluding leases, C$746.8M is about 59.7%, still a fail. Cash is effectively nil (~0% of market cap). No Zoya, Musaffa, or ShariaPortfolio coverage was found. This is a rules-based screen, not a religious ruling.

Gate 1 — Business activity: PASS

Saturn Oil & Gas Inc. is a Canadian oil & gas exploration and production company focused on light oil in Western Canada: southeast Saskatchewan (Oxbow/Midale/Frobisher, Bakken), southwest Saskatchewan (Battrum), west central Saskatchewan (Viking), and central Alberta (Cardium, Kaybob/Montney). Q2 2026 production averaged 41,447 boe/d (81% oil and liquids). All revenue is petroleum and natural gas sales plus processing income. There are no alcohol, gambling, weapons, tobacco, cannabis, conventional-lending/insurance, or pork segments. The business gate passes.

Gate 2 — Debt and cash: FAIL

Total interest-bearing debt at June 30, 2026 (Q2 2026 condensed consolidated interim financial statements) was C$817.7M: C$715.8M principal of 9.625% senior notes due June 15, 2029 (carrying C$706.4M), a C$40.4M credit facility draw, and C$70.8M of lease liabilities (the FS “Total Debt” line is C$746.8M excluding leases, net of unamortized issue costs). Against a market cap of ~C$1.25B (180.0M shares × C$6.94, October 1, 2026, TSX), that is about 65.4% — far above the ~33% ceiling; excluding leases it is about 59.7%, also a fail, so the verdict is robust to lease treatment. In July 2026 the company priced dual-tranche 2031 senior unsecured notes (US$575M at 8.5% + C$185M at 7.5%) to redeem the US$504M 9.625% 2029 notes — the coupon falls and covenants relax, but debt stays elevated. Cash is effectively nil (~0% of market cap), which passes the cash gate. The debt gate fails decisively.

Gate 3 — Non-compliant income: PASS

The Q2 2026 financial statements separately disclose interest income of C$1.162M (Note 11, “Financing” — shown as an offset to financing expenses of C$26.2M, explicitly labeled “Interest income”, not netted away; C$1.419M in H1 2026). Against Q2 2026 revenue of C$358.7M petroleum and natural gas sales (C$363.3M including C$4.6M processing income), that is about 0.32% — well under the ~5% ceiling (H1 basis ~0.23%). The income gate passes.

Key figures used

Frequently asked questions

Is Saturn Oil & Gas (SOIL) halal?

Our October 2026 screen gives Saturn Oil & Gas Inc. (TSX: SOIL) a FAIL. The debt gate fails decisively: total interest-bearing debt of C$817.7M (including leases) is about 65.4% of the ~C$1.25B market cap — far above the ~33% ceiling (excluding leases, C$746.8M is about 59.7%, also a fail). The business gate passes (conventional oil & gas production in Western Canada, no prohibited segments) and the income gate passes (separately disclosed interest income of C$1.162M is about 0.32% of Q2 2026 revenue, well under the ~5% ceiling). No Zoya, Musaffa, or ShariaPortfolio coverage was found. This is a rules-based screen, not a religious ruling.

What does Saturn Oil & Gas do?

Saturn Oil & Gas is a Canadian oil & gas exploration and production company focused on light oil in Western Canada — southeast Saskatchewan (Oxbow/Midale/Frobisher, Bakken), southwest Saskatchewan (Battrum), west central Saskatchewan (Viking) and central Alberta (Cardium, Kaybob/Montney). Q2 2026 production averaged 41,447 boe/d (81% oil and liquids). All revenue is petroleum and natural gas sales plus processing income. There are no prohibited business segments.

How much debt does Saturn Oil & Gas have?

At June 30, 2026 (Q2 2026 condensed consolidated interim financial statements), total interest-bearing debt was C$817.7M — C$715.8M principal of 9.625% senior notes due June 15, 2029 (carrying C$706.4M), a C$40.4M credit facility draw, and C$70.8M of lease liabilities. Against a market cap of ~C$1.25B (180.0M shares × C$6.94, October 1, 2026, TSX), that is about 65.4% — far above the ~33% ceiling; excluding leases it is about 59.7%, still a fail. In July 2026 the company priced dual-tranche 2031 senior notes (US$575M at 8.5% + C$185M at 7.5%) to redeem the 2029 notes — the coupon falls but debt stays elevated.

Is Saturn Oil & Gas’s cash position compliant?

Yes — in the sense that there is essentially no cash. The Q2 2026 balance sheet has no cash line; the cash-flow statement shows “Cash, end of period” blank for 2026, and the adjusted working capital deficit of C$14.7M (receivables C$116.8M + prepaids C$42.2M − payables C$173.8M) confirms cash is about nil. Cash plus securities is therefore ~0% of market cap — comfortably under the ~33% guideline.

What do third-party Shariah screeners say about SOIL?

No Zoya, Musaffa, or ShariaPortfolio rating was found for SOIL in public search — none of the three named providers surfaced coverage, so no rating is claimed here.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.