Obsidian Energy Announces First Half Capital Program Update

Core Insights - Obsidian Energy has successfully completed its first half 2025 capital program, achieving a new production high of 14,000 boe/d in the Peace River asset [4][5][6] - The company is focusing on enhanced oil recovery techniques and has initiated a Clearwater waterflood pilot project in the Dawson field, which is expected to increase reservoir recovery [7][8] - The macro-economic environment remains uncertain, prompting the company to adjust its capital allocation decisions for the second half of 2025 [2] Production Highlights - All 30 wells in the first half program were rig released by the end of May 2025, with all development wells now on production [1] - The Dawson Clearwater program has exceeded expectations, with all five waterflood pilot wells online [2] - Initial production rates from the Dawson field have significantly increased from 189 boe/d in Q4 2023 to over 3,000 boe/d in May 2025 [6] Development Program - The development drilling in the established fields of Harmon Valley South and Dawson has yielded strong production results [2][3] - The HVS field has seen successful results from the "waffle well" drilling design, enhancing initial production performance [6] - The company has identified follow-up locations for further drilling based on successful initial production rates from various pads [6] Waterflood Pilot Project - The Clearwater waterflood pilot project aims to test the potential for increased reservoir oil recovery in the Dawson field [7] - Successful execution of this project could lead to broader implementation of enhanced oil recovery techniques across Peace River assets [8] Light Oil Assets - Obsidian Energy participated in five non-operated wells at the Pembina Cardium Unit 11, achieving an average 30-day IP rate of 223 boe/d per well [9] - The wells were initially rate restricted due to gas takeaway capacity, with peak production rates ranging from 335 to 360 boe/d [9] Hedging Update - The company has added new oil and gas contracts to mitigate risks associated with potentially lower commodity prices [10] - Current oil contracts include WTI swaps and collars with varying volumes and prices, aimed at stabilizing revenue [10][12] Upcoming Events - Obsidian Energy will participate in the RBC Global Energy, Power and Infrastructure Conference on June 3-4, 2025, with a presentation by the President and CEO [14]