- Obsidian Energy Ltd. has announced its fiscal and operational plans for 2021 in addition to releasing its fourth-quarter and 2020 fiscal year-end results
- Financial highlights from the 2020 fiscal year include a 5 per cent reduction in debt, 17 per cent decrease in net operation costs, and 45 per cent decrease in capital expenditures
- All activity to date in 2021 has been completed on schedule and within budget estimates
- Obsidian Energy (OBE) is an intermediate-sized oil and gas producer with strategic assets in Alberta
- Obsidian Energy (OBE) is down 3.4 per cent and is currently trading at C$1.99 per share
Obsidian Energy has announced its fiscal and operational plans for 2021 in addition to releasing its fourth-quarter and 2020 fiscal year-end results.
Financial highlights from the 2020 fiscal year include a 5 per cent reduction in debt, 17 per cent decrease in net operation costs, and 45 per cent decrease in capital expenditures.
Due to lower commodity prices in 2020, FFO was down C$41.3 million in 2020 compared to 2019, and down C$27.8 million during Q4 of 2020 compared to Q4 2019.
The low price of oil resulted in a C$771.7 million net loss in the first quarter of 2020.
However, the company was able to reduce general and administrative expenses by 26 per cent overall, successfully reducing the costs per well to C$3.2 million for the year.
Obsidian reported success in replacing production by adding 37.3 net Cardium locations to their reserves.
The 10 net well drilling program resulted in some of the best wells in the history of the Cardium area, delivering strong initial production and ongoing rates.
In 2021, Obsidian plans to expand its drilling program from 7 new planned wells to 9 due to continued strong commodity prices.
The company stated in their release, “We expect to generate higher fourth quarter and exit production rates than achieved in 2020, while still meaningfully reducing debt levels.”
To date, seven wells have been successfully rig-released, and the remaining wells are expected to be rig-released prior to the third week of April, subject to ground conditions.
All activity to date has been completed on schedule and within budget estimates.
Obsidian Energy (OBE) is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.
Obsidian Energy (OBE) is down 3.4 per cent and is currently trading at C$1.99 per share as of 2:00 pm ET.