Obsidian Energy Ltd T.OBE

Clearwater

[Flush11]

did anyone listen to the Baytex conference call. Lots of details on the Clearwater in there. Too bad they screwed up so badly with an idiotic hedging strategy.

They are nailing a lot of great wells very close to OBE and using a pretty simple tweak on the multilaterals - fewer but longer. Seems like it would be more efficient?

a few callers tried to pin them down on how much they want to grow the production. 15k barrels sounds like a no brainer for the company in a short period of time. It sounded to me like they wanted to grow that asset to 25k per day of production.

It is a matter of time before they start selling other assets and redeploying capital into Clearwater and Bluesky projects. The cost, recycle rate and payback period are so stupidly good at these commodity prices there is too much opportunity to ignore.

really looking forward to any updates OBE can provide.

[JohnJBond]

Baytex said their best locations where in the middle of their Peavine land. They said they have tried 4 x 2 mile laterals, vs 8 x 1 mile laterals.    They said the catch is you have to know your land very well to know where to place the two mile lateral.     This sand zone is not very wide, so you must know exactly where it is for two miles from your drill hole.

[JohnJBond]

IT does look like OBE is getting ready for some very active heavy oil activity. Looks like they obtained 8 dawson licenses on March 5 And 4 more bluesky licences on April 6 That's 12 licenes right there, in the space of about 1 month. The 8 dawson licenses appear to be re-do's of 15-16 year old wells.    This may mean going to a pre existing pad that hasn't been used

[masfortuna]

I would not think that it is in the cards this year.  Assuming that they decide to drill, the results would not hit the bottom line before q4'ish. 

[masfortuna]

I own BTE as well.  They are my largest holding.  BTE is a long game. They started with suffocating debt and were very close to a chapter 7.  The emphasis has been to pay down the debt. This q1 they increased their capex by 80 million and a lot of "instant gratification" bailed. Today we are back close to the 52 week high of $7.14. BTE will pay out in spades and will