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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 JohnJBondon Jan 16, 2025 11:30am
85 Views
Post# 36407210

RE:RE:Reflections on Obsidian Energy’s News Release dated January

RE:RE:Reflections on Obsidian Energy’s News Release dated January Thank you for your kind words.

I do not have a target price for OBE by the end of 2025.

At the start of each of 2023 and 2024 I thought OBE would get to C$20 by the end of that year.   In each case I was wrong, and it didn't happen.   I rationalized those outcomes at those times, but deciding it just hadn't happenned yet.

Its realtively straight forward to tell what will happen to a share price.  But it is extremely difficult to predict when.

In OBE's case, I think the stars are starting to line up.

By stars I mean

1.  Production Increase

2.  Proven and Possible Reserve Increase

3.  Production Price Incraese (the combination of WTI, CAD/USD, WCS Discount, Natural Gas Prices)

4.  Multiple Realignment (Multiple movement from low to average, or better)

Any one of these could double (or better) the current share price.

What happens when they happen concurrently?

I can't predict (with confidence) the numerical outcome, nor the date.

What I can say, is there is a high probability of this being an asymmetric situation.     By that I mean the probabily of the share price moving in one direction a given amount, is higher than moving in the other.

When stock hunting, you look for asymmetric targets.   If you see one, you lasoo it and hold on until it stops running.    Only then, do you find out exactly what you caught.

As always, these are my thoughts.    That doesn't make them correct.    They may turn out to be wrong. 

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