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Obsidian Energy Announces 2024 Guidance With 12 Percent Growth in Average Annual Production to 36,000 boe/d
• Capital program with 78 operated wells expected to generate 12 percent annual productio...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces 2024 Guidance With 12 Percent Growth in Average Annual Production to 36,000 boe/d• Capital program with 78 operated wells expected to generate 12 percent annual production growth over 2023• ~$350 million capital program is ~$30 million lower from previous forecast at midpoint• Development plan weighted towards Peace River, expanding on our Bluesky and Clearwater success from 2023• 2024 plan is expected to generate funds flow from of operations of ~ $400 million and positive free cash flow of ~$27 million at US$75/bbl WTICalgary, Alberta--(Newsfile Corp. - January 25, 2024) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to announce our 2024 capital and operating program and financial guidance which outlines our activity for the first year of our three-year corporate growth plan, building on our success in 2023. \"In September 2023, we unveiled our three-year growth plan (the \"Growth Plan\") with a stated production goal of over 50,000 boe/d in 2026. Today, we are pleased to provide our formal 2024 capital and operating program that matches our Growth Plan forecast of 36,000 boe/d, with approximately $30 million less capital spending,\" commented Stephen Loukas, Obsidian Energy's President and CEO. \"The momentum of our second half 2023 drilling program has allowed us to optimize our capital program and reduce capital spending from our previous forecast. Consistent with our Growth Plan, our 2024 capital program is focused on maintaining production in our light oil business to generate free cash flow to support growth within our heavy oil business at Peace River, as well as to continue to fund our normal course issuer bid (\"NCIB\") activity.\" Mr. Loukas continued, \"Our 2024 capital program is flexible and affords us optionality to accelerate our growth and/or NCIB activity in a strengthening commodity price scenario or reduce our capital expenditures if commodity prices materially weaken.\" 2024 GUIDANCE Obsidian Energy's 2024 capital program is designed to grow production through the development of new and existing fields while further delineating our Peace River asset. The Company is planning between $345 and $355 million in capital expenditures (including $25 million for exploration/appra...