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Obsidian Energy Announces Strong 2025 Reserves Results

By The Northwire Desk — AI Analysis Feb 05, 2026 · 07:01 OBE · 10.23 OBSIDIAN ENERGY LTD.
OBE · Price

Executive Summary

  • Obsidian Energy reports strong reserve replacement for 2025: 118 % (PDP), 185 % (1P) and 235 % (2P) versus production adjusted for dispositions.
  • The Pembina asset disposition reduced total reserves but lowered de‑commissioning liabilities by >50 % and improved balance‑sheet liquidity; reserve additions were driven by infill drilling in Peace River and the emerging Belly River play in Willesden Green.
  • Total undeveloped 2P locations increased to 357 (net +39), with notable growth in Willesden Green (130 net locations) and Peace River (180 net locations).

Key Details

  • Reserve Replacement Ratios (2025):
  • PDP = 118 %
  • 1P = 185 %

  • 2P = 235 %

  • Capital Program Highlights (2025):

  • Primary development & exploration in Peace River (Harmon Valley South, Dawson).
  • Water‑flood pilots: Dawson (Clearwater) and HVS (Bluesky).

  • Drilling of initial wells in the Belly River formation at Willesden Green (Open Creek), adding 12 locations and 5.6 MMboe.

  • Reserve Additions:

  • Peace River water‑flood projects added 3.5 MMboe on a 2P basis, mainly in Dawson.

  • Belly River program contributed 12 new locations (5.6 MMboe).

  • NPV10 Impact (Before‑Tax):

  • PDP: $961 M (41 % decrease including dispositions; 8 % increase excluding dispositions & economic factors)
  • 1P: $1,446 M (36 % decrease incl. dispositions; 14 % increase excl. dispositions & economics)

  • 2P: $2,103 M (32 % decrease incl. dispositions; 16 % increase excl. dispositions & economics)

  • Future Development Capital (FDC): ~US$243 M per year on a 2P basis over five years.

  • Undeveloped 2P Locations (Net): 357 total

  • Willesden Green/PCU #11: 130 net locations (Cardium 113, Belly River 14, Manville 3)
  • Peace River – Clearwater: 103 net locations
  • Peace River – Bluesky: 77 net locations

  • Viking: 47 net locations

  • Reserve Life Index (RLI): ~6.0 years (PDP), 10.1 years (1P), 13.3 years (2P).

  • Finding & Development (F&D) Costs (2025):

  • PDP = $25.70/boe
  • 1P = $19.44/boe

  • 2P = $20.68/boe

  • FD&A Costs (2025):

  • PDP = $(0.87)/boe (negative due to removal of FDC from Pembina disposition)
  • 1P = $11.71/boe

  • 2P = $9.09/boe

  • Operating Netback (2025): $27.48/boe (impacted by lower oil prices).

  • Recycle Ratios (2025): PDP = 1.1×, 1P = 1.4×, 2P = 1.3×.

  • Corporate Decline Rate: 23 % on a PDP basis (vs. 22 % in 2024).

  • Disposition Impact: Pembina sale removed $390 M of ARO (including $189 M inactive) and reduced de‑commissioning liabilities by $18 M NPV10.

  • Future Reserve Additions Outlook: Continued water‑flood expansion expected to add further reserves; ongoing exploration in Willesden Green anticipated to generate additional locations.

Notable Quotes

“Our reserves report reflects what was a transformational year at the Company given the disposition of our Pembina asset… organic activity once again more than replaced production across all reserve categories…” – Stephen Loukas, President & CEO

All figures are presented in Canadian dollars unless otherwise noted.

Read the original news release →

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