Obsidian Energy Announces 2023 Guidance

Obsidian Energy expects to grow average production to approximately 32,000 to 33,500 boe/d in 2023 – a seven percent increase from 2022 at the mid-point. During 2023, the Company is planning between $260 and $270 million in capital expenditures for development and exploration/appraisal activities, plus an additional $26 to $28 million in decommissioning expenditures that accelerates our asset retirement obligations (decommissioning expenditures are higher in 2023 than in 2022 as the Alberta Energy Regulator increased industry spend targets for oil and gas companies in Alberta).

Capital expenditures are primarily focused on development wells in all areas and incorporate the impact of inflationary pressures on drilling consumables and service costs, which were approximately 30 percent higher at the end of 2022 compared to 2021.

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Obsidian Energy Well Drilled Last 12 Months

Our 2023 program incorporates activity in all three areas, including first quarter 2023 development drilling in Viking following the successful step-out well in 2022 and an expanded Clearwater exploration/appraisal program in Peace River to further assess our extensive land position. With rigs and services contracted, the first half 2023 program is well underway with five rigs in the process of drilling 25 wells (24.8 net) of our 46 well (44.2 net) operated program that includes:

Seven Cardium wells (6.8 net) in Willesden Green and Pembina

Three Bluesky development wells (3.0 net) and two (2.0 net) exploration/appraisal wells in Peace River

Two Clearwater exploration/appraisal wells (2.0 net) in Peace River

11 wells (11.0 net) in the Viking area

Obsidian Energy Map of Operations

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