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Obsidian Energy Announces 2021 Reserves Value Increase of over 50 Percent with Year-End Reserves Report
Reserve values increased by more than 50 percent across all categories with total proved pl...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces 2021 Reserves Value Increase of over 50 Percent with Year-End Reserves ReportReserve values increased by more than 50 percent across all categories with total proved plus probable of approximately $1.8 billion (net asset value, before-tax, discounted at 10 percent)Reserve replacement of 214 percent, 310 percent and 317 percent of 2021 production on a proved developed producing, total proved and total proved plus probable basis, respectivelyProved plus probable F&D costs of $10.27 per boe generated a proved plus probable operating recycle ratio of 3.2 times Calgary, Alberta--(Newsfile Corp. - February 7, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\" or the \"Company\") is pleased to announce its independent reserves evaluation for the year ended December 31, 2021, prepared by Sproule Associates Limited (\"Sproule\"). \"The results of our 2021 reserves report speak to the strength of our assets and our technical teams,\" said Stephen Loukas, Obsidian Energy's Interim President and CEO. \"We had an active year with the expansion of a very successful capital program as well as the acquisition of the remaining interest in the Peace River Oil Partnership (\"PROP\") in November 2021. Combined with higher commodity prices over the year, our reserve values and volumes increased across every category. Additionally, our low finding and development costs generated exceptional value for our capital and in combination with the quality of our asset base we replaced more than double 2021's production with new reserves. As a result, our total proved plus probable (\"2P\") reserve value increased by $621 million to approximately $1.8 billion at year-end (before tax, discounted at 10 percent).Stephen Loukas continued, \"Due to the combination of our drilling results and continued cost efficiency gains, we achieved our fifth straight year of greater than 100 percent reserve replacement on total proved (\"1P\") reserves and total 2P reserves, excluding acquisitions and dispositions. With a compelling inventory of potential future drilling opportunities, we are well positioned to execute our business plan and further strengthen our balance sheet in 2022.\"HIGHLIGHTS Our 2021 capital program was primarily focused on development in the Cardium formation, with a total of 35 wells (33.8 ne...