Obsidian Energy Ltd T.OBE

BTE Peavine clearwater statement

[JohnJBond]

BTE came out with their Q1 results after the market closed today.

They have clearwater land at Peavine.    BTE's Peavine land is adjacent to OBE's.   BTE's land is situated to the East and Southeast of BOE's land.     This is what BTE said today about their Peavine Q1 results

"We also materially advanced our Clearwater development with ten wells drilled at Peavine, including three wells averaging 30-day initial production rates of 1,100 bbl/d per well. These exceptional wells have enabled us to more than double our Clearwater production to 8,000 bbl/d today."

Clearwater can be very regional, so even though BTE is getting good results close to OBE land, that does not mean OBE will get similar results.    That said, it is postive news when your neighbour reports $1100 bbl/day wells.   

OBE has a lot of land to pay with.    The question is - does OBE have this to look forward to on its land, or is the something very different between OBE's land, and their neighbours?

[Flush11]

nice find. that is why I own this stock. All of the Clearwater and Bluesky prospects right beside Baytex. The share price should be at least 50% higher based on their current Cardium production but the sizzle is up in the 500 sections of Bluesky and Clearwater. Just phenomenal numbers. pretty remarkable for BTE - standing start to 8000 BOE/day in a few quarters and 7 of the top 10 producing

[JohnJBond]

I'm pretty sure there is no fracking or casing on the horizontal legs - which is why they are so economic. It also makes some much faster to finish - ie no frac crew to wait for and pay to finish the well. OBE's Bluesky seems like a given. The Clearwater is to be determined. The Bluesky is just under the clearwater, and basically just as good - its just not getting the popular

[perstrudent]

I doubt OBE has any of this land...OBE closest land is still a little ways away probably 6 miles...the closest land they have to peavine they drilled a JV with woodcote that was average results...not these barnburners.. BTE has been pretty clear this is a sweet spot of thicker pay more porous...even there stepout only 2 miles north they did was basicallya  dud with ip 30 of 120 bopd... Now

[kavern23]

After looking at clearwater wells individually...I get the impression BTE has best land in Peavine.  Woodcote (Tamarack valley) seems more on edge of sweet spot.  But even some of that woodcote has that start at 188 BOE.....they are holding decently.  28500 produced after 6 or 7 months is fairly good. Alot is also unlown as nobody has drilled right of Baytex...be helpful too see

[TheRexmember]

Such early days on this play. there is lots more to learn - they don't know where all the best land is yet. Just changing the drilling fluids has made a huge difference. It is already 200 miles further Northwest than the first research i read on it. It's funny - one note was the 120 bopd well was called a dud. That would be a pretty typical Willy green oil well but a bit cheaper to

[JohnJBond]

It will be interesting to see how much OBE can get out of a blue sky will with BTE like laterals