Obsidian Energy Announces Closing of Peace River Acquisition
Obsidian Energy has completed its acquisition of Clearwater production assets and 148 net sections of land in the Peace River area, amounting to approximately 1,700 boe/d of oil production, as of April 2024. The acquisition, valued at $80.5 million, was funded through the company's syndicated bank facility and a $50 million term loan maturing in June 2025. CEO Stephen Loukas highlighted the strategic benefits of the acquisition, which includes 200 identified drilling locations, with 103 locations on trend with the company's successful Clearwater Dawson development. The acquisition fits into Obsidian's 2024-2026 corporate growth plan.
Positive
Acquisition of 1,700 boe/d of Clearwater production.
Expanded 148 net sections of land in Peace River area.
Total acquisition valued at $80.5 million.
Funding secured through syndicated bank facility and $50 million term loan.
Identification of 200 drilling locations with 103 on trend with successful developments.
Integration into the 2024-2026 corporate growth plan.
Negative
Funding includes a $50 million term loan maturing in June 2025, potentially increasing financial strain.