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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 17, 2022 10:42pm
203 Views
Post# 34766333

RE:Reflections

RE:ReflectionsGreat analysis and certainly your views jive with Front Four's vision all along. They began this journey in 2018 thinking it was an 18 month project with a 50%-75% rate of return. Obviously it is more like a 5 year project now but the BNE deal seemed rushed and a clear indication they wanted an exit. Every aspect of their strategy is to maintain as much wealth in the company. A dividend is very unlikely because that bleeds wealth out of the company. They can use those funds on 200%+IRR projects and can keep pumping the value. I suspect their deadline is to wrap up this project in 5 years or 2013 where they have traversed a$30USD share price exit which would give them a 200% return over 5 years and they can go into the next project. 
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