OBE January 09, 2024 07:01 ET (12:01 GMT)
* Obsidian Energy Announces 2023 Operations Update -2-
In the fourth quarter of 2023, we continued our light oil development activity as we completed our second half 2023 development program: 30 operated (29.7 net) wells were rig released, of which 24 (23.7 net) are currently on production (including 13 (13.0 net) wells brought onstream in late December). The remaining six (6.0 net) wells will be brought on production in the first quarter of 2024. Initial indications are encouraging as the team works on cleaning up and optimizing production from recent well additions. Concurrently, we have initiated the 2024 development program to help maintain light oil production levels throughout our three-year plan.
Willesden Green
Obsidian Energy had a strong end to the year at Willesden Green with the rig release of seven (6.7 net) wells targeting the Cardium formation: four (3.7 net) wells were placed on production prior to the end of 2023, three of which came onstream in late December. A third (1.0 net) well on the three-well 4-18 Pad was spud in December 2023; the Pad is expected to be onstream in February 2024.
The well at the Open Creek 9-17 Pad continues its very strong performance with flat declines and high production rates. Spud in September 2023, the one (0.7 net) well is proving to be highly economic with an average IP 30-day rate of 491 boe/d (86 percent oil). Production declines have been minimal with an average IP 60-day rate of 473 boe/d (83 percent oil) and IP 90-day rate of 472 boe/d (78 percent oil). The results of this well have reinforced the value of the eastern acreage of Willesden Green and we plan to return to development in this area in 2024.
Pembina
Development work was continuous to the end of December in the Pembina area. Construction and drilling of the two (2.0 net) wells at the Paddy North 10-28 Pad were completed during the fourth quarter of 2023 with production onstream in late-December. The wells are currently being optimized. The four-well 7-36 Pad was constructed and spud in the fourth quarter: three (3.0 net) wells were rig released between November and December with the fourth (1.0 net) well expected to be rig released in January. Production from all four wells is expected to be onstream in February of 2024.
In 2023, Obsidian Energy also participated in the development of the non-operated Pembina Cardium Unit 11 ("PCU#11") (45 percent working interest). In total, 12 (5.4 net) wells were drilled over the year, including 3 (1.3 net) injection wells. The results of this program have been excellent with the first seven of nine producing wells providing average IP 30-day rates of 376 boe/d (94 percent oil). We expect that our partner will continue the development of the PCU#11 with a similarly sized program in 2024.
Viking
Following up on our previous success at Viking, Obsidian Energy efficiently constructed, drilled, rig released and placed all eight (8.0 net) wells on the 2-22 Pad on production by the end of December. The wells are in the process of cleaning up with strong production additions anticipated in early 2024, providing additional cash flow from this shallow, low-risk, highly economic resource play.
HEDGING UPDATE
We have recently added to our hedge positions, primarily through the addition of AECO swaps and collars. The following contracts are currently in place on a weighted average basis: