Obsidian Energy Ltd T.OBE

Multi lateral wells and other plays.....

[kavern23]

One thing to note...is Alberta will likely increase their conventional production with few rigs in then five years ago due to just how good multi lateral wells are....

Take cardinal energy.

They went to other heavy oil land they have and they did a multi lateral in Chauvins.

In the Rex formation.

This well came on production Sept 2021...did 324 barrels a day....and it has done 390-420 barrels of oil since even in Jan 2022....

Cardinal only had old vertical wells here.

Instead of drilling 8 single horizontal wells over 40-50 days....do one mutli lateral now to get same production and way lower cost....

Bottom line is need less rigs and fewer wells.

This why I think alberta is gaining with the current rig count.

Surge energy and gear energy etc....they will sttart doing more multi laterals on their plays....

Just behind.

[perstrudent]

Yes noticed Surge well results...its definently tends to be taking off.. Makes sense as its sort of inflationary proof...your vertical steel casing is still the same, but really only increased cost is a few more days of drilling rig time, no sand, no frac, etc.....not to mention the time from drill to on production is incredibly fast to take advantage of strength in markets...Shale is viewed as a

[kavern23]

Surge seem behind in embracing tech or they are trying to save money.... In provost beside Surge stuff....westlake energy is only doing multi lateral in 2021...ie one well bore...and they are doing very well.... But Surge is still doing seperate horizontals in 2021...just extensions to existing pads...... Surge probably will change to more more multi lateral in 2022. Medium and heavy oil that

[perstrudent]

Is BTE using the multilaterlal on any of their heavy oil in llyod area? i dont follow BTE over there at all..

[kavern23]

Baytex will likely talk about this soon in either press release tomorrow or the next investor presentation...I think BTE has some good news to share from Llyold... So even in 2021...most of the heavy oil wells drilled in Sparky zone by Surge, Baytex, etc are done same way....just 4 to 6 well pads...of invidual horizontals done with really shallow rigs. I was beginning to give up as I was started

[kavern23]

"This well had some down time but still at 35000 barrels produced and it came online in sept." This is up until Dec..I didnt pull Jan for the well... WCS should be close to 100 bucks in Cad dollars....going forward that's 3.5m revenue in 4 months...payback period is going to stimulate drilling....

[JohnJBond]

Agreed, applying the latteral drilling tech developed during the shale period, to the bluesky, clearwater type formation is the thing to keep an eye on. These heavy oil wells need a higher oil price to breakeven, but over that level, they produce cash much faster.    This means that until late last year, there was no point in applying this tech to this resource. But now that the

[Hendrick3]

Steifel started OBE as a buy with a target price of $14. I think that was the catalyst for the big recovery and the pending results added to the upward momentum.  lookinh forward to the PR tomorrow and the market's reaction. 

[JohnJBond]

It will indeed be interesting to see what updates they may include in the their Q4 and 2021 results. Pretty well everything except their Q4 exit has been previously released. They predicted $88 million in funds flow for Q4 about a month or so before the end of the Quarter - oil sold off in Dec/21 and the Prop purchase was a week or so late, so they may be a little under that $88 number

[Hendrick3]

Q4- $80 million in FFO or $1.04 per share. Net Debt $413.5. No big disappointments or positive surprises but overall just about as expected. I think with the new upgrades, the well and reserve results it's all up from here. Not to mention oil near $100

[WallStPirate]

Agree are excellent but as expected.  Its the new wells, PROP, Clearwater, running rigs and current oil prices that are the fuel to rocket this.

[kavern23]

I agree.....eveything looks really great and I like how transparent OBE's management is in explaining thngs.... Nice to see them add this gas hedge: April - October 2022   11,848 mcf/d   $ 4.31/mcf