Obsidian Energy Ltd. announced its second half 2025 capital expenditures are planned between $110 and $120 million, representing a material reduction of approximately 33 percent from both its first half 2025 program and its second half program in 2024. This disciplined spending approach is a response to commodity price volatility and the company's enhanced liquidity post-Pembina disposition.
Production is expected to average 27,700 boe/d in the second half of 2025, roughly flat to first half 2025 production excluding the Pembina disposition, with an anticipated exit rate of approximately 29,000 boe/d for 2025. The capital program will focus on key development fields in Peace River and a return to development at Willesden Green, including extending infrastructure to the Open Creek field.
The company also announced its intention to commence a substantial issuer bid (Exchange Offer) to purchase up to approximately $10 million of its common shares in exchange for InPlay Oil Corp. common shares. This initiative aims to buy back shares while marginally reducing Obsidian's InPlay holdings, providing additional optionality for future monetization of its significant InPlay position.
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