Obsidian Energy Announces Strong 2025 Reserves Results
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 %
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2P = 235 %
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Capital Program Highlights (2025):
- Primary development & exploration in Peace River (Harmon Valley South, Dawson).
- Water‑flood pilots: Dawson (Clearwater) and HVS (Bluesky).
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Drilling of initial wells in the Belly River formation at Willesden Green (Open Creek), adding 12 locations and 5.6 MMboe.
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Reserve Additions:
- Peace River water‑flood projects added 3.5 MMboe on a 2P basis, mainly in Dawson.
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Belly River program contributed 12 new locations (5.6 MMboe).
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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)
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2P: $2,103 M (32 % decrease incl. dispositions; 16 % increase excl. dispositions & economics)
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Future Development Capital (FDC): ~US$243 M per year on a 2P basis over five years.
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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
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Viking: 47 net locations
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Reserve Life Index (RLI): ~6.0 years (PDP), 10.1 years (1P), 13.3 years (2P).
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Finding & Development (F&D) Costs (2025):
- PDP = $25.70/boe
- 1P = $19.44/boe
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2P = $20.68/boe
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FD&A Costs (2025):
- PDP = $(0.87)/boe (negative due to removal of FDC from Pembina disposition)
- 1P = $11.71/boe
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2P = $9.09/boe
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Operating Netback (2025): $27.48/boe (impacted by lower oil prices).
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Recycle Ratios (2025): PDP = 1.1×, 1P = 1.4×, 2P = 1.3×.
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Corporate Decline Rate: 23 % on a PDP basis (vs. 22 % in 2024).
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Disposition Impact: Pembina sale removed $390 M of ARO (including $189 M inactive) and reduced de‑commissioning liabilities by $18 M NPV10.
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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.