Business
Obsidian Energy Provides Operational Update with Increased Production Guidance, and Additional Wells to Be Drilled in 2021
Production guidance increased to 24,300 - 24,500 boe/d Accelerated three wells from our 2...
About this update from Obsidian Energy Ltd
[{"type":"text","content":"Obsidian Energy Provides Operational Update with Increased Production Guidance, and Additional Wells to Be Drilled in 2021Production guidance increased to 24,300 - 24,500 boe/dAccelerated three wells from our 2022 program into 2021, remaining within our capital guidanceStephen Loukas employment contract extended to December 31, 2022Calgary, Alberta--(Newsfile Corp. - October 27, 2021) - OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to provide an update on our continued strong second half development program with two drilling rigs active in our Cardium asset, acceleration of three drills from our 2022 program into 2021, and an increase to our 2021 production guidance. In addition, we expect third quarter production to average approximately 24,150 boe/d based on preliminary estimates.\"With ten new wells on production from late September to the end of October, we are well on our way to achieving our strategic objective of restoring our production to pre-COVID levels by the end of 2021,\" commented Stephen Loukas, Obsidian Energy's Interim President and CEO. \"This significant number of new wells added to our program in the second half of 2021 displays our team's ability to quickly scale our program and access our deep and diverse inventory across our land base with improved commodity prices.\" We have increased our full-year 2021 production guidance to between 24,300 and 24,500 boe/d due to strong results from our development program and continued outperformance of our base production. Continuing strong commodity prices combined with our drilling performance has allowed the Company to accelerate its development program with the addition of three 2022 Cardium development wells into December 2021. The early start to our 2022 program allows for continuous and cost-efficient drilling through late 2021 into 2022. With these wells, we anticipate capital spending to be at the upper end of our guidance range. 2021 DEVELOPMENT PROGRAM UPDATEWe are on track to successfully drill our second half development program, including the addition of the three wells (2.8 net) in December, which will be brought on production early in 2022. Accelerating the drilling of these three wells into 2021 will allow our activity to continue uninterrupted into 2022, securing access to ...