Canadian fossil fuel extraction firm Obsidian Energy enters 2018 with strong production numbers.
In January, the company reported that they were producing in excess of 32,000 barrels of petroleum per day and reported beating their extraction target of 31,000 per month for 2017. Obsidian Energy met and exceeded their 2017 goal, averaging 31,700 per month despite setbacks caused by severe Canadian weather.
The company expressed enthusiasm over last year’s 3rd quarter production with the Cardium project, the Alberta Viking site, with 2 out of the 12 Peace River wells under construction and the other 10 on production. Obsidian reports that Deep Basin drilling is delivering overall liquid rates at over twice the curve expectations for the wells’ types.
Additionally, Obsidian has made use of foreign currency exchange rates, hedging most of its foreign exchange exposure on their WTI hedges for 2018. Obsidian currently manages the AECO and Ventura, both CAD hedges.
In other disclosures, Obsidian Energy announced the disposition of several of the firm’s legacy assets.
President and CEO of Obsidian David French stated that the transaction moves the company forwards by regaining the Obsidian’s focus on assets that are currently providing economic benefit to their operation.
The deal, which took several months to close, builds on the company’s outstanding 2017 extraction numbers.
French adds that the disposition gives the Obsidian stronger financial flexibility and reduces its cost structure. Furthermore, speaking on behalf of Obsidian’s management, he expressed that the transaction continues to advance their transparent commitment to maximizing the firm’s value to the advantage of its shareholders.
The disposition resulted in a $25 million reduction in Obsidian’s discounted decommissioned liabilities. Additionally, 2018 netbacks are improved by nearly $1.50/boe, increasing the company’s liquids weighting to 65 percent as a result of the legacy transaction.
About Obsidian Energy
Founded in Calgary, Alberta, Canada in 1979, Obsidian Energy provides oil and natural gas extraction in the Western Canadian Sedimentary Basin.
The company currently employees approximately 300 and is managed by President, CEO David L. French. Find More Information Here.
Obsidian Energy is traded on the Toronto Stock exchange as TSX: OBE and in the United States on the New York Stock Exchange as NYSE: OBE.