Calgary, Alberta–(Newsfile Corp. – May 31, 2023) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces an increase to our syndicated credit facility and provides an update on both the results of our first half 2023 Viking drilling program and the expected impact of Alberta wildfires on production and funds flow from operations.
With the addition of the Industrial and Commercial Bank of China (Canada) to our banking syndicate, the Company is pleased to announce an increase to our syndicated credit facility to $240 million from $200 million, successfully completing our near-term objective of enhancing our liquidity and providing more flexibility for our return of capital strategy. The revolving period and maturity dates under the syndicated credit facility remain unchanged at May 31, 2024, and May 31, 2025, respectively.
As of May 29, 2023, all 11 (11.0 net) Viking wells drilled during our first half 2023 development program are on stream. The wells are still in the process of cleaning up and are currently producing at a total rate of 1,832 boe/d (85 percent oil). Additionally, Obsidian Energy commissioned the new 13-16 battery in the Viking area as part of our 2023 capital program to allow for continued growth in the expanded and delineated western region of the play.
We are pleased to advise that 1,000 boe/d of the 1,750 boe/d of production impacted due to Alberta wildfires has been brought back online. The remaining 750 boe/d is expected to be on production by the end of this week. With all production impacted by the wildfires occurring in the quarter, we expect our average production to be reduced by approximately 2,100 boe/d for the second quarter of 2023, and 525 boe/d for 2023 on an annualized basis, with a corresponding reduction in funds flow from operations of approximately $6.0 million. We continue to monitor commodity prices given the recent volatility and are reviewing our plans for the remainder of the year, including the optimization of our second half capital program.
RBC GLOBAL ENERGY, POWER AND INFRASTRUCTURE CONFERENCE
Obsidian Energy will be participating in the RBC Global Energy, Power and Infrastructure Conference from June 6th to 7th, 2023 at the InterContinental New York Times Square in New York, NY. Stephen Loukas, President and CEO will be participating in a breakout session on Wednesday, June 7, 2023, at 2:40 p.m. ET/ 12:40 p.m. MT.
ANNUAL AND SPECIAL MEETING
The Company’s Annual and Special Meeting (the “Meeting“) is scheduled for Monday, June 12, 2023, at 9:00 am (MT) at the offices of Obsidian Energy, Suite 200, 207 – 9 Avenue SW, Calgary, Alberta. Access to the Meeting will, subject to Company’s by-laws, be limited to essential personnel, registered shareholders and proxyholders entitled to attend and vote at the Meeting as well as invited guests.
In association with the Meeting, our President and CEO, Stephen Loukas and other members of management will host a webcast presentation after the formal portion of the meeting at 10:00 am MT (12:00 pm ET) (the “Presentation“).
The Presentation will be broadcast live on the Internet and may be accessed either through our website or directly at the webcast portal. Those who wish to listen to the Presentation should connect at least five minutes prior to the scheduled start time through the following numbers:
|Canada / USA:||1-800-319-4610 (toll-free)|
A question-and-answer session will be held following the Presentation. If you wish to submit a question to the Company, participants can do so ahead of time after registering on the webcast portal on the Intranet or by emailing questions to firstname.lastname@example.org. The updated corporate presentation and the Presentation will be available for replay on our website, www.obsidianenergy.com.
Additional information about the Meeting can be found on our website.
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