Canada’s Obsidian Energy Upbeat About Strong Third Quarter Results

Top officials at Canada’s Obsidian Energy are reporting extremely positive results in its 2017 third quarter company report. Obsidian is an intermediate-sized gas and oil energy producer based in Calgary, Alberta.

 

Obsidian Energy CEO David French spoke in glowing terms about the production value of new wells sunk in an area known as the Deep Basin, a vast region comprising more than three million acres of land on the eastern side of the Rocky Mountains in Western Canada.

 

Obsidian only recently made its first foray into the Deep Basin — already the location of many other wells and assets owned by a variety of players in the energy industry. Obsidian Energy has worked hard to establish significant Deep Basin assets and is pleased with results so far.

 

Company officials say it has established three “Mannville Wells” which are currently producing a combined 2,000 barrels per day, and these have the added value of a robust liquid rate of 60 barrels of oil equivalent per million cubic feet. This value was far greater than predicted for the wells and will have a positive effect on cost-benefit ratios.

 

Other Obsidian Energy projects are also showing remarkable performance and promise. These include working sites in Cardium, Alberta Viking, and Peace River. With the help of these wells, Obsidian officials predict 2017 production will come in at the “high end’ of the 31,500 goal it set for the year.

 

Obsidian forecasts a 5% production growth rate for 2018 while limiting investment to 80% of “Fund Flow” operations. Of course, the better commodity prices play out, the more attractive the numbers get, but even if prices remain relatively stable at current levels, the outlook is excellent for 2018. Get More Information Here.

 

The Obsidian Board has established a $135 million budget for 2018 based on the assets of the company’s portfolio. Obsidian is determined to implement maximum efficiency in terms of production, methods and practices so that maximum gain is garnered from all operations.

 

The bottom line is that Obsidian Energy third quarter numbers has the remainder of 2017 and 2018 looking bright for this scrappy, highly competitive energy company.

 

See Also: https://globalnews.ca/news/3481168/penn-west-proposes-name-change-to-obsidian-energy/