NEWS
Obsidian Energy Announces Peace River Acquisition and Increased 2024 Average Production Guidance
Obsidian Energy announced the acquisition of Peace River Peavine and Gift Lake assets, adding 1,700 boe/d of Clearwater production and 148 net sections of land for $76 million. This acquisition increases Obsidian's land position to over 680 net sections with Clearwater and Bluesky oil rights. The deal is expected to close by July 14, 2024, funded through debt financing.
The 2024 guidance has been revised to reflect reduced capital expenditures and increased production. The acquisition is expected to improve production efficiency and diversify future development programs. The revised 2024 production target is 36,400 boe/d, up from 32,275 boe/d in 2023.
Key financial updates include an increase in funds flow from operations to $405 million and free cash flow to $47 million. Capital expenditures are reduced to $330-$340 million, with net debt revised to $395 million by year-end 2024.
The 2024 guidance has been revised to reflect reduced capital expenditures and increased production. The acquisition is expected to improve production efficiency and diversify future development programs. The revised 2024 production target is 36,400 boe/d, up from 32,275 boe/d in 2023.
Key financial updates include an increase in funds flow from operations to $405 million and free cash flow to $47 million. Capital expenditures are reduced to $330-$340 million, with net debt revised to $395 million by year-end 2024.
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