Calgary, Alberta – OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces the extension of our syndicated credit facility to February 26, 2021 and provides an operational update on recent drilling and hedging activities.
CREDIT FACILITY EXTENSION
The Company has entered into an agreement with lenders to extend our syndicated credit facility to February 26, 2021. The syndicated credit facility has an underlying borrowing base of $550 million with $450 million available to be drawn; both amounts remain unchanged from the previous facility. Under the agreement, the syndicated credit facility continues to be available on a revolving basis until February 26, 2021, subject to further extensions, with the end date of the term period remaining on November 30, 2021. In connection with the extension, the lenders have the option to complete a borrowing base redetermination on February 26, 2021.
The Company’s development drilling program continues to progress on schedule and at internal cost estimates with three of the seven planned Willesden Green Cardium locations rig-released to date. Additionally, the Bigoray processing facility upgrades and acquired pipeline reconfiguration have been successfully completed on our internal estimate of $2 million. Restoration of 450 boe per day of net production is underway.
The Company continues to add incremental hedges to our hedge book at recent constructive price levels. Currently, the Company has the following financial oil and natural gas hedges and physical oil and differential hedges in place:
(1) WTI and differentials on production hedged to lock-in positive net operating income on certain heavy oil properties.
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(1) Differentials completed on an $US WTI – $US MSW basis and converted to Canadian dollars using a fixed foreign exchange ratio of CAD/USD $1.281 in the second quarter of 2021 and $1.279 in the third quarter of 2021.
UPDATED CORPORATE PRESENTATION
Obsidian Energy has posted an updated corporate presentation that provides information on the Company and its operations on its website, www.obsidianenergy.com.