Obsidian Energy Announces an Increase in its Syndicated Credit Facility and Provides an Operational Update

December 17, 2018 CNW

CALGARY, Dec. 17, 2018 /CNW/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces that its semi-annual borrowing base redetermination has resulted in a $30 million increase to its syndicated credit facility to $470 million. Additionally, Obsidian Energy provides an update on our latest Cardium drilling activity.

Increased Syndicated Credit Facility

The Company has a reserve-based syndicated credit facility, with an underlying borrowing base of $550 million, less the amount of outstanding pari passu senior notes. The increase in the syndicated credit facility from $440 million to $470 million is primarily due to the July 2018 retirement of an outstanding Pound Sterling cross currency swap.

The reserve-based syndicated credit facility is subject to a semi-annual borrowing base redetermination in May and November of each year.

Cardium Drilling Program Update

Obsidian Energy is pleased to report that our second half 2018 Cardium program is proceeding ahead of schedule and under budget. Additionally, well deliverability is meeting our updated type-curves as presented during our recent Investor Day. We now expect to have 10 wells on production prior to the end of 2018, up from five wells in our original plan.

To date, we have drilled 14 wells in Willesden Green, completing our second half 2018 program. Our technical team has optimized the design of one of our pads, resulting in one less well in the program while maintaining the same production rate expectations of approximately 2,700 bbl of oil per day and 3,800 boe per day in February 2019. Obsidian Energy will continue to bring our Willesden Green Cardium wells on production as planned, prioritizing our strongest netback production within the Alberta Government’s mandated production curtailment.

Completions activity has progressed better than expected, with 10 wells fractured to date. Stimulation costs have been considerably under estimates resulting from optimized operations and service provider cost reductions. A summary of our strong production performance is outlined in the table below.

Pad	Status	Deliverability
8-9 (3 wells)	On production	IP30 total pad: 1,762 boe per day (1,222 bbl of oil per day) IP30 per well: 587 boe per day (407 bbl of oil per day)
14-1 (2 wells)	On production	IP20 total pad: 837 boe per day (697 bbl of oil per day) IP20 per well: 419 boe per day (348 bbl of oil per day)
4-6 (3 wells)	On production mid-December	Initial flowback rates in line with pads above
1-36 (2 wells)	On production end of December	Initial flowback rates in line with pads above
9-2 (2 wells)	Early January completion
5-18 (2 wells)	Mid-January completion