Obsidian Energy: Strong Peace River Development Results, But Dispute Must Be Resolved

Summary

  • Obsidian's development program is going well, and it has recently averaged over 35,500 BOEPD in production despite 4,500 BOEPD in shut-in production.
  • It also made a US$55 million Peace River acquisition that further adds to its inventory and production.
  • A blockade by the Woodland Cree First Nation is resulting in the shut-in production.
  • While Obsidian has unaffected Peace River assets (including its recent acquisition), it will need to resolve the dispute to have full development opportunities.
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Oil field site, in the evening, oil pumps are running, The oil pump and the beautiful sunset reflected in the water

zhengzaishuru

Obsidian Energy (NYSE:OBE)(TSX:OBE:CA) announced positive results for its 1H 2024 development program, underpinned by strong heavy oil well results. It also made a Peace River acquisition that increases its net sections of Peace

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OBE, OBE:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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