Business
Obsidian Energy Announces Three-Year Growth Plan to Reach 50,000 boe/d in 2026
Peace River assets drive corporate production growth to 50,000 boe/d in 2026, while maintaining 2...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Announces Three-Year Growth Plan to Reach 50,000 boe/d in 2026Peace River assets drive corporate production growth to 50,000 boe/d in 2026, while maintaining 25 percent flat annual corporate decline rate Peace River area production growth to 24,000 boe/d in 2026 from current rate of 6,600 boe/d, resulting in a nine percent increase in our total liquids weighting to 76 percent Plan generates $291 million of free cash flow from 2024 to 2026 at US$75.00/bbl WTI2023 capital budget increased to $300 million with recent increase in oil prices Calgary, Alberta--(Newsfile Corp. - September 21, 2023) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to announce our three-year corporate plan, focused primarily on growth from the Peace River asset, as well as a $40 million increase to our 2023 capital program. \"Following the acquisition of the remaining working interest at our Peace River asset in late 2021, we have successfully completed several initiatives to access its value, including rebuilding and expanding our Peace River team,\" said Stephen Loukas, President and CEO. \"With enhanced knowledge and understanding of the area and its formations, we have unveiled a three-year plan with expected production growth reaching 50,000 boe/d in mid-2026. This increase is driven primarily by the development of our Peace River assets, which are expected to increase from 6,600 boe/d to 24,000 boe/d. The successful execution of our plan is expected to generate $291 million of cumulative free cash flow (\"FCF\") over the period at a US$75.00/bbl WTI oil price and forecasted 2026 funds from operations (\"FFO\") of $8.19 per share.\" Loukas continued, \"We have also elected to increase our 2023 capital program by $40 million given the recent strength in oil prices to accelerate development, which will result in added production volumes in 2024. Our oil price forecast for the balance of the year increased to US$85/bbl WTI while our FCF remains unchanged in our revised guidance, which includes the 2.5 million shares repurchased and cancelled for $21.2 million as at August 31, 2023.\"2024 - 2026 GROWTH PLAN1Our strategy for the three-year corporate growth plan is to maintain production levels in our Willesden Green and Pembina (Cardium), and Viking light o...