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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 Hendrick3on Jun 01, 2022 8:38am
171 Views
Post# 34722648

RE:RE:Viking

RE:RE:VikingI think they have higher IRR projects but they are not available due to spring break up. Their choice was drill some pretty good IRR wells or sit on their hands. Some would argue that sitting on their hands and paying down some debt is a good idea but actually it's not even close in terms of value to shareholders. Secondly they recognize that availability of rigs, supplies and crews is a huge problem. By seizing the moment, they are getting work done before the availability issues hit hard and greatly increase costs. These guys actually recognize their best use of cash is drilling oil wells which at these prices have over 100% IRR's even in the Viking area. Brilliant!
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