Obsidian Vitality Ltd has reported a rise in all reserve classes for 2024, aided by its acquisition of land and belongings within the Peace River space.
Obsidian’s Peace River heavy oil areas have greater than tripled because of the success of its 2024 capital program mixed with the affect of the 2024 Peace River Clearwater acquisition, including 107 web 2P reserve areas, the corporate mentioned in a information launch.
The Calgary, Alberta-based firm mentioned it changed 146 % of 2024 manufacturing on a proved developed producing (PDP) reserves foundation, 229 % on a 1P reserves foundation and 296 % on a 2P reserves foundation. It attributed the elevated reserves primarily to the affect of drilling infill wells and area extensions, the acquisition of the Peace River Clearwater lands, and optimistic technical revisions.
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Obsidian’s whole undeveloped 2P reserve areas elevated by 114 web areas to 458 whole web areas booked. These embrace 243 web areas within the Cardium, 97 web areas within the Clearwater, 63 web areas within the Bluesky, 50 web areas within the Viking, three web areas within the Mannville, and two web areas within the Stomach River, based on the discharge.
Obsidian mentioned its 2024 capital program targeted on “unlocking the numerous potential throughout our heavy oil enterprise at Peace River whereas sustaining manufacturing in our mild oil enterprise,” whereas its exploration and appraisal drilling program prolonged present improvement areas and established new fields.
“New booked Cardium areas changed wells drilled throughout 2024, persevering with to show our stock of sunshine oil areas,” the corporate famous.
Obsidian mentioned it elevated future improvement capital (FDC) within the 1P and 2P reserve classes to mirror the progress in its Peace River asset and “to raised align with future capital spending ranges”.
“Quantity and worth will increase throughout all our reserves classes mirror the excessive stage of improvement exercise and success of our 2024 capital program,” Obsidian President and CEO Stephen Loukas mentioned. “We greater than changed manufacturing in all reserve classes (together with earlier than acquisitions) – signifying the eighth yr in a row that we achieved such positive aspects in 1P and 2P reserves – whereas additionally producing a recycle ratio over two instances on a 2P foundation. Specializing in our Peace River asset, the affect of elevated improvement, area extensions, delineation drilling and the Peace River Clearwater acquisition added 107 new areas out of the entire 114 new booked areas added in 2024. With a rising stock of potential future drilling alternatives, we’re effectively positioned to additional enhance our per share reserve values in 2025 and past”.
In July 2024, Obsidian closed its acquisition of roughly 1,700 barrels of oil per day (boepd) of Clearwater manufacturing and 148 web sections of land within the Peace River space from an undisclosed third-party vendor.
The whole consideration paid for the acquisition was roughly $58.60 million (CAD 80.5 million), inclusive of liquids stock and shutting changes, with an efficient date of Might 1, 2024.
The money consideration for the acquisition was funded from Obsidian Vitality’s syndicated financial institution facility and a $36.4 million (CAD 50 million) time period mortgage, the corporate mentioned in an earlier assertion.
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