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Obsidian Energy Announces Expanded 2022 Development Program, Increased 2022 Guidance, and Preliminary 2023 Forecast
2022 guidance increased to an average production range of 31,500 to 32,500 boe/d based on ex...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces Expanded 2022 Development Program, Increased 2022 Guidance, and Preliminary 2023 Forecast2022 guidance increased to an average production range of 31,500 to 32,500 boe/d based on expanded capital development program Second half 2022 four-rig drilling program includes 38 operated wells (35.5 net) of which 26 wells (24.1 net) are expected to be on production by year-endFull year 2022 activity combined with our preliminary 2023 forecast increases 2023 average production to between 37,000 and 38,000 boe/d, a 52 percent increase over 2021 Calgary, Alberta--(Newsfile Corp. - June 16, 2022) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to provide an operational update on the success of our 2022 first half development program, as well as announce an expanded second half development program, increased 2022 guidance and a preliminary forecast for 2023.The first half 2022 development program resulted in significant production growth for the Company from our Willesden Green, Pembina, and Peace River assets. An additional 38 wells (35.5 net) will be drilled over the second half 2022 for a total of 68 wells (65 net) rig-released this year. As a result, we are increasing our 2022 average production guidance to between 31,500 and 32,500 boe/d. Looking to 2023, we are providing a preliminary forecast of between $260 and $270 million of capital expenditures, further growing average production to between 37,000 and 38,000 boe/d.\"We entered 2022 with a bullish outlook on commodity prices that anchored our tactical decision to operate four drilling rigs during our first half development program,\" said Stephen Loukas, Obsidian Energy's Interim President and CEO. \"Moreover, we secured contracts whereby we obtained the required services and materials to maintain the optionality to continue to operate four drilling rigs through to spring break-up in 2023. Notwithstanding recent service cost inflation, wellhead economics are extremely robust with compelling returns and recycle ratios at current commodity prices.\"Mr. Loukas continued, \"Accordingly, our Board of Directors has decided to increase our second half 2022 capital expenditure budget to better align Obsidian Energy's production profile with its vast resource base - while maintaining...