CALGARY (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to provide an update on our Cardium development program which continues to demonstrate encouraging results as we initiate our 2020 drilling campaign. Additionally, the Company provides the details of recently added hedges to our 2020 program.
Cardium Development Program Update
All 13 wells from the second half of 2019 were successfully brought online prior to the end of December. Results from the program continue to meet the strong production expectations for the area, with IP10 rates for the program averaging 520 boe/d (90% oil) per well (all 13 wells are included in the average), and IP30 rates for wells averaging 485 boe/d (83% oil) per well (11 of the 13 wells are included in the average). We are very encouraged with our capital cost performance, with the wells averaging C$3.5 million per well, down from C$4 million estimated for a comparable well design at our 2018 Investor Day.
Activity is well underway to deliver the nine well program planned for the first half of 2020. Two drilling rigs are active for the Company. Three wells have been rig-released, with the drilling of the fourth and fifth wells underway.
We continue to prepare for our second half 2020 program in the Willesden Green region, which is expected to begin after breakup conditions end.
Hedging Update
The volatility of oil prices over the past several weeks has allowed Obsidian Energy to strengthen its 2020 hedging program, providing additional certainty to our cash flow at levels that are constructive to our business.
Currently, the Company has the following 2020 oil and natural gas hedges in place:
January |
February |
March |
April |
May |
June |
|
WTI C$/bbl |
$76.61 |
$78.98 |
$78.58 |
$78.11 |
$77.92 |
$77.41 |
Total bbl/day |
8,250 |
7,750 |
7,000 |
4,000 |
3,000 |
2,000 |
January |
February |
|||||
C$/GJ |
$2.40 |
$2.33 |
||||
Total GJ/day |
23,000 |
18,000 |
Updated Corporate Presentation
For further information on these and other matters, Obsidian Energy has posted an updated Corporate Presentation which can be found on its website, www.obsidianenergy.com.