Obsidian Energy Announces Closing of Peace River Acquisition

Core Viewpoint - Obsidian Energy has successfully completed the acquisition of approximately 1,700 barrels of oil equivalent per day (boe/d) of Clearwater production and 148 net sections of land in the Peace River area for a total consideration of approximately $80.5 million, enhancing its operational capacity and growth potential in the region [5][11]. Acquisition Details - The acquisition includes 1,700 boe/d of production, which is 100% oil based on April 2024 actual production [5]. - The total consideration for the acquisition was approximately $80.5 million, which includes liquids inventory and closing adjustments, with an effective date of May 1, 2024 [11]. - The cash consideration was funded through a syndicated bank facility and a $50 million term loan, maturing in June 2025 [11]. Strategic Implications - The acquisition is expected to provide further upside and optionality within the Peace River operating area, with approximately 200 total drilling locations identified on the acquired lands [6]. - Of these locations, 103 are on trend with the successful Clearwater Dawson development, including 49 proved plus probable locations [6]. Financial Support - The financing for the acquisition was supported by Royal Bank of Canada, Bank of Montreal, and Canadian Western Bank [6]. Future Growth Plans - The acquisition aligns with Obsidian Energy's three-year corporate growth plan for 2024-2026, indicating a strategic move to enhance production capabilities and operational efficiency [6].