CALGARY, April 16, 2019 /CNW/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce an operational update on our Cardium drilling program.
“While still in the early days of my tenure as Interim President and CEO of Obsidian Energy, I continue to be excited by the high caliber of our Cardium program and the future for long term growth. We continued to march through our development program delivering volumes as expected, on time, and on budget. Given the vast inventory of similar locations in Willesden Green and throughout our Cardium properties, we see years of compelling repeatable development campaigns to come. We are examining every facet of the business to ensure we are always making improvements, including a continual review of our capital allocation, cost structure, and portfolio composition.” commented Michael Faust, Interim President and CEO.
Continued Cardium Success
After proving the viability of a quick cycle, light oil, primary production campaign in early 2018, we began a dedicated execution program starting in July 2018 and carrying through to break-up in March 2019. All 19 wells have now been completed and are on production. These wells continue to perform as expected, demonstrating the repeatability of our development style as we drill the first of several core Cardium areas. The average drill, complete, equip, and tie-in costs of all 19 wells came in at $3.8 million per well and without any safety or environmental incidents.
The 14 wells drilled in 2018 averaged initial production rates over the first 30 days of 540 boe per day and 87% oil. The 2019 portion of that program included five wells, the last three of which came on production in the past week. These three wells are showing extremely robust initial production rates, with the pad averaging single day peak rates of over 1,000 boe per day per well.
The Company will resume drilling of its fast cycle primary development program in the Cardium following spring break-up in July 2019 and plan to continue through to March 2020. All of our planned 2019 locations will be fully licensed and drill ready in the very near future. We remain committed to execute our program and keep our spend within Funds Flow from Operations, and therefore will remain flexible and responsive to changes in commodity price.