Calgary, Alberta – OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces an extension of our syndicated credit facility to March 31, 2021 and provides a hedging update.
CREDIT FACILITY EXTENSION
The Company has entered into an agreement with lenders to extend our syndicated credit facility to March 31, 2021. The syndicated credit facility has an underlying borrowing base of $550 million with $450 million available to be drawn; both amounts remain unchanged. Under the agreement, the syndicated credit facility continues to be available on a revolving basis until March 31, 2021, subject to further extensions, with the end date of the term period remaining on November 30, 2021.
HEDGING UPDATE
The Company continues to add incremental hedges to our hedge book at recent price levels with the following financial oil and natural gas hedges and physical oil and differential hedges in place:
Financial
2021 | |||
Oil | February | March | April |
WTI C$/bbl | $64.33 | $68.37 | $74.83 |
Total bbl/d | 6,250 | 6,550 | 2,250 |
2021 | |||||
Natural gas | February | March | April | May | June |
C$/mcf | $2.94 | $2.96 | $2.83 | $2.68 | $2.67 |
Total mcf/d | 23,700 | 26,060 | 23,700 | 21,325 | 21,325 |
Physical
2021 | |||||
Oil 1 | February | March | April | May | June |
WTI C$/bbl | $55.24 | $55.24 | $59.04 | $59.04 | $59.04 |
Total bbl/d | 581 | 524 | 577 | 558 | 577 |
(1) WTI, differentials and foreign exchange hedged to lock-in positive net operating income on certain heavy oil properties.
2021 | ||||||
Light oil differential | April | May | June | July | August | September |
CAD1,2 | ||||||
WTI C$/bbl | $5.51 | $5.51 | $5.51 | $5.82 | $5.82 | $5.82 |
Total bbl/d | 1,259 | 1,218 | 1,259 | 1,218 | 1,218 | 1,259 |
USD1 | ||||||
WTI US$/bbl | $4.00 | $4.00 | $4.00 | $4.42 | $4.42 | $4.42 |
Total bbl/d | 1,573 | 1,522 | 1,573 | 1,522 | 1,522 | 1,573 |
(1) Differentials completed on a WTI – MSW basis.
(2) Completed on a US$ 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 $1.279 in the third quarter of 2021.
2021 | |||
Heavy oil differential | July | August | September |
CAD1 | |||
WTI C$/bbl | $14.85 | $14.85 | $14.85 |
Total bbl/d | 558 | 558 | 577 |
(1) Differentials completed on a WTI – WCS basis.