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Obsidian Energy Ltd T.OBE

Alternate Symbol(s):  OBE

Obsidian Energy Ltd. is a Canada-based exploration and production company. The Company operates in one segment, to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. It has a portfolio of assets producing around 35,700 barrels of oil equivalent (boe) per day. Its operating areas include Cardium, Peace River and Viking areas of Alberta. Its Cardium asset is a fully delineated and de-risked asset. It is focused on manufacturing repeatable low-decline and high-netback light-oil wells across its Cardium land base. The Viking is a light oil, horizontal development play located in central Alberta. Its operations are focused on the Esther area. Peace River is a stable, cold-flow, base production asset. It operates on a contiguous and an acreage within the heart of the Peace River Oilsands region.


TSX:OBE - Post by User

Comment by Darwynon Feb 01, 2023 11:45am
303 Views
Post# 35259648

RE:RE:RE:Hendrick

RE:RE:RE:Hendrick   Sir, thank you again for your analysis of the situation here. I am slightly disappointed on the volume side of the report expecting a little more than delivered. I was not surprised to hear inflation pressure on drilling and other services but to the extent of the increase ( 30%) am hearing that the industry cannot find enough bodies to drive trucks around. 

I am all in on the NCIB which cannot start soon enough but leary on the prospect of getting an increase in revolving lines to facilitate. Granted revalued reserves support the increase in the credit facility and the shares are clearly undervalued, we are still in a rising interest rate cycle hoping for an increasing price strip.

Looking back it would have been helpful to have locked in some of the oil production at higher available pricing making it a whole lot easier to execute the buyback.

I am not an oil guy but it seems the land acquistion in the Peace River area makes sense as a potential asset to flip to someone who has the financial ability to do something with it. They have be sitting on this area for many years. I am not convinced yet that with increased takeaway that diiferentials will decrease by the amounts that have been suggested.

Again thanks for you contributions.

Just trying to get to the point of breaking even on this position in my lifetime!

PS. Is anyone else concerned that SL is the only one in senior management / directors who is putting skin in the game? Where is their conviction?


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