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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 kavern23on Jan 16, 2024 1:21am
123 Views
Post# 35828278

RE:RE:Think of it this way…

RE:RE:Think of it this way…

It is easy to look back and comment without knowing all the facts. Neither of us knows exact conversation Obe had with their bankers in 2019 and 2020. Plenty of press releases of Obe having to change amendments on financial convents and extension on debt faculty being done so often.
Maybe the bank were hinting to Obe at the time with their debt so high they needed to merge and get bigger? OBE probably didn't have great leverage. Oil was 50-60 in 2019 and under 20 in 2020 for short while. 

But the current management team didn't take on all that debt, so lucky breaks happened but they got out of it.

I don't think you can speee up a turn around is my point. And the idea and suggestion to merge in cardium was still right strategy for long term, only Obe was in a tight spot financially  when they suggested Bne deal.

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