Obsidian Energy(US:OBE) Newsfile·2025-01-14 12:00Core Viewpoint - Obsidian Energy has reported strong operational results for 2024, exceeding production guidance and setting the stage for further growth in 2025, with a target of reaching 50,000 boe/d by 2026 [2][3][4]. Production and Financial Performance - The company anticipates an average production of approximately 37,450 boe/d for the full year 2024, which is a 16% increase compared to 2023, surpassing the guidance range of 37,000 to 37,400 boe/d [2][5]. - In Q4 2024, average production was approximately 40,000 boe/d based on preliminary estimates [2]. - The completion of the 2024 capital program has further delineated the Peace River acreage, with successful initial production rates from new wells in the Peavine and Gift Lake areas [5][9]. Drilling and Development Activities - A total of 66 operated wells were rig released in 2024, with 65 brought on production by year-end [4][6]. - The company has mobilized two additional drilling rigs to commence its 2025 activities, currently operating six rigs [3][7]. - The 2025 development program has already started with five rigs active in Peace River [7][8]. Heavy Oil Assets - The Peace River program continued to show robust production rates, with significant growth in Clearwater production from 99 boe/d in January 2023 to over 4,500 boe/d in December 2024 [9][10]. - The Dawson Clearwater development field exceeded production expectations, allowing for a faster pace of development [9][10]. Light Oil Assets - The Pembina program was completed with all planned wells rig released and on production by year-end, achieving a gross average IP 30-day rate of 343 boe/d per well [17]. - The Willesden Green area has seen initial encouraging results, although sand production issues have required intervention [17][14]. Management and Strategic Focus - The company has appointed Jay McGilvary as the new Vice President of Development, who will lead subsurface characterization and exploitation efforts [14]. - The strategic focus remains on appraising and delineating heavy oil assets while maintaining stable production from light oil operations [3][4]. Hedging and Market Conditions - The company has established various hedging contracts for oil and natural gas, with WTI swaps in place for January to March 2025 at prices ranging from $100.46 to $106.23 per barrel [15][16]. - The company continues to assess market conditions, including fluctuations in oil and gas prices, as it prepares to announce its first half 2025 capital program [3][4].