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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

Post by JohnJBondon Jun 01, 2022 12:39pm
325 Views
Post# 34723682

Today

TodayA down day on Wall Street, and a down day in OBE's comparables

But a significant up day for OBE.

What's happenning?

Its not yesterday's news release - the Viking news has been public for more than a month.    Those 8 Viking wells were licenced back on April 25 for all to see, and openly discussed on this forum.

Extending the revolving period and borrowing base redetermination date under their syndicated credit facility to July 15, 2022, from May 31, 2022, is entirely consistent with issuing debintures between now and July 15 (ie July 1).     OBE has previously stated publicly they are doing just this

The hedging update - nothing much there - certainly nothing unexpected.     To get a share price boost from a hedging announcement, they should stop hedging any oil (one more thing they may be free to do once the banking syndicate has been paid out)

In my view, today's price action is about the buying that happenned at the close yesterday.   Someone large showed themselves.

Today would be a good day for that someone to continue to accumulate

Today would also be a good day for those holding short positions to close them asap incase someone is about to put OBE in play.

Today would also be a good day for those who look for potential takeover situations to buy a trading position.

I suspect a combination of all three of the above is underway today.

It will be interesting to see what the next few days bring.

At the very least, OBE has caught the attention of a new institutional buyer.     That on its own, will tend to catch the attention of other insitutional buyers.

At the other end of the range of possibilities, someone with money to place, is building a position - if they cross 10%, they will need reveal themselves and their intent.

Takeovers start with accumulating upto 10% as quitely and cheaply as possible.    Then make a public offer for the rest.    Once its in play, someone is going to buy it - if its not the one who put it in play, they go away with a big profit on their 10%.    Either way, they win.


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