Obsidian Energy Announces Increase in 2024 Reserves Across All Categories
- Reserve replacement of 146 percent, 229 percent and 296 percent of 2024 production on a proved developed producing (“PDP”) reserves, proved (“1P”) reserves, and proved plus probable(“2P”) reserves basis, respectively
- 1P reserve value increased 23 percent on a per share basis to $2.3 billion (before-tax, discounted at 10 percent)
- Added 107 new locations to our 2P Peace River reserves, totalling 160 net locations for the area
Calgary, Alberta–( February 4, 2025) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce the results of our independent reserves evaluation for the year ended December 31, 2024 (the “2024 Reserve Report“) prepared by GLJ Ltd. (“GLJ“).
OBE Announces Increase in 2024 Reserves Across All Categories
“Volume and value increases across all our reserves categories reflect the high level of development activity and success of our 2024 capital program,” said Stephen Loukas, Obsidian Energy’s President and CEO. “We more than replaced production in all reserve categories (including before acquisitions) – signifying the eighth year in a row that we achieved such gains in 1P and 2P reserves – while also generating a recycle ratio over two times on a 2P basis. Focusing on our Peace River asset, the impact of increased development, field extensions, delineation drilling and the Peace River Clearwater acquisition added 107 new locations out of the total 114 new booked locations added in 2024. With a growing inventory of potential future drilling opportunities, we are well positioned to further increase our per share reserve values in 2025 and beyond.”
Stephen Loukas continued, “The efficiency of our capital program is demonstrated by lower finding and development (“F&D“) costs per boe in our 1P and 2P reserve categories. When combined with our activity level and increase to future development capital (“FDC“), our 1P reserve value increased by 17 percent or $323 million to approximately $2.3 billion at year-end (before tax, discounted at 10 percent). Our active share buyback program in 2024 further enhanced our reserve value metrics, increasing it by 23 percent from 2023 to $30.58 per share in 2024 on a 1P basis (before tax, discounted at 10 percent).”
HIGHLIGHTS
Obsidian Energy’s 2024 capital program focused on unlocking the significant potential across our heavy oil business at Peace River while maintaining production in our light oil business. Furthermore, our 2024 exploration/appraisal drilling program successfully extended existing development areas and established new fields.
- We replaced 146 percent of 2024 production on a PDP reserves basis, 229 percent on a 1P reserves basis and 296 percent on a 2P reserves basis.
- The impact of drilling infill wells and field extensions from our 2024 capital program, the acquisition of the Peace River Clearwater lands, and positive technical revisions were the major contributing factors to increased reserves.
- Reserves before-tax net present value discounted at 10 percent (“NPV10“) increased from 2023 levels, largely due to the volume increases outlined above, are as follows:
- PDP: 9 percent increase to $1.6 billion (15 percent increase on a per share basis).
- 1P: 17 percent increase to $2.3 billion (23 percent increase on a per share basis).
- 2P: 20 percent increase to $3.1 billion (26 percent increase on a per share basis).
- FDC increased in both the 1P and 2P reserve categories to reflect the progress in our Peace River asset and to better align with future capital spending levels. As a result, FDC generates a five-year program of approximately $340 million per year on a 2P reserve basis.
- We were able to book significantly more locations due to the successful development and exploration/appraisal wells from our 2024 Peace River capital program combined with the addition of reserves from the 2024 Peace River Clearwater acquisition lands. As such, FDC associated with our Peace River asset was adjusted upward to more appropriately reflect our future anticipated spending plans. We expect to add additional locations to our booked reserves in Peace River over the coming years as we continue to appraise and further develop this asset.
- Execution of our capital program resulted in improvements from between seven to 14 percent in both F&D and Finding, Development and Acquisition (“FD&A“) costs year-over-year for 1P and 2P reserves, highlighting the quality of our reserve book and ability to efficiently develop our reserves.
- F&D costs including changes in FDC were $19.55/boe for PDP, $19.27/boe for 1P and $16.31/boe for 2P.
- FD&A costs including changes in FDC were $21.15/boe for PDP, $20.44/boe for 1P and $17.08 /boe for 2P.
- The efficiency of our program was demonstrated through 2024 recycle ratios of 1.7x for PDP, 1.8x for 1P and 2.1x for 2P, based on our expected 2024 operating netback of $33.86/boe and F&D costs (including changes in FDC).
- Our total corporate decline rate on a PDP basis was relatively unchanged year-over-year at 22 percent in 2024 compared to 21 percent in 2023, even with our expanded capital program and significantly higher development activity in Peace River.
- On a three-year average basis, PDP decline rates are now at 18 percent compared to 17 percent in 2023.
- Our total undeveloped 2P reserve locations increased by 114 net locations to 458 total net locations booked: including 243 net locations in the Cardium, 97 net locations in the Clearwater, 63 net locations in the Bluesky, 50 net locations in the Viking, three net locations in the Mannville and two net locations in the Belly River.
- Peace River heavy oil locations more than tripled due to the success of our 2024 capital program combined with the impact of the 2024 Peace River Clearwater acquisition, adding 107 net 2P reserve locations over the year.
- New booked Cardium locations replaced wells drilled during 2024, continuing to demonstrate our inventory of light oil locations.
- Booked locations represent an achievable total 2P five-year FDC of $1.7 billion (approximately $340 million per year).
- Obsidian Energy maintains a strong reserve life index (“RLI“) of approximately 6.9, 10.3 and 13.5 years on a PDP, 1P, and 2P reserves basis, respectively.
SUMMARY OF 2024 RESERVES
GLJ conducted an independent reserves evaluation of 100 percent of our reserves effective December 31, 2024, using a three-consultant average (“IC3“) price deck of forecast commodity prices and assumptions at December 31, 2024. This evaluation was prepared in accordance with definitions, standards, and procedures set out in the Canadian Oil and gas Evaluation Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101“). Reserves included below are company share gross reserves which are the Company’s total working interest reserves before the deduction of any royalties and excluding any royalty interests payable to the Company.
The numbers in the tables below may not add due to rounding.
Summary of Reserves – by Product1
NT4


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