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.

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Obsidian Energy Ltd > Q2

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Comment by Tim14235on Jul 26, 2021 11:43am

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Post# 33604447

RE:RE:RE:RE:RE:RE:Q2

and I agree selling Peace River should be next. Prices are up big and it is safe to assume that TMX will increase demand and therefore decrease differential. Closer we get to TMX, we may reach a max valuation for this asset.

But you have to balance this against potential for macro drops and declining production.

If the asset is highly economic and we have no plans to drill it, then you SELL IT

It produces massive cash flow right now so you need to get a fair multiple or you just keep it. So unsure how the M&A market is for an asset like this.

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