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Obsidian Energy Announces $30.0 Million Term Loan Repayment, Operations Update and Facility Acquisition
• Seal 9-15 gas plant acquired in Peace River area • Second half capital prog...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces $30.0 Million Term Loan Repayment, Operations Update and Facility Acquisition• Seal 9-15 gas plant acquired in Peace River area• Second half capital program well underway in Cardium and Peace RiverCalgary, Alberta--(Newsfile Corp. - September 13, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") announces the full repayment of the $30.0 million non-revolving term loan (the \"Term Loan\") from free cash flow from our operations. The Term Loan was part of our new syndicated credit facilities with initial borrowing capacity of $205.0 million that was entered into with our debt refinancing completed in July 2022. With the repayment of the Term Loan, our remaining debt consists of a $175.0 million revolving syndicated credit facility with a term-out period of July 27, 2024, and $127.6 million of senior unsecured notes due July 27, 2027. \"We are in a substantially stronger financial position from where the Company was a year ago,\" said Stephen Loukas, Obsidian Energy's Interim President and CEO. \"With the recent refinancing and our repayment of the Term Loan, we are on track to reach our 2022 guidance range of net debt to funds flow from operations of less than 0.6x.\" OPERATIONS UPDATE Our second half 2022 development program is well underway in our core areas with several of the newly drilled wells rig-released and expected to be on production by mid-October. Approximately nine (9.0 net) wells have been rig-released thus far in the third quarter: four (4.0 net) Cardium wells in Pembina and Willesden Green, four (4.0 net) Bluesky wells in Peace River, and one (1.0 net) Mannville gas well in Willesden Green. In addition, all eight (8.0 net) Viking wells are on production with initial results in line with forecast as they clean up. A significant aspect of the Viking program is the step-out well drilled to test the western extent of the play, which displayed a peak 10-day initial production rate of 218 boe/d (86 percent oil) and opens up additional development and reserves in the area.ACQUISITION OF SEAL 9-15 GAS PLANT IN PEACE RIVERObsidian Energy also announces that we purchased the Seal 9-15 gas plant within our core Peace River asset. The acquisition keeps with our established approach of owning the majority o...