Obsidian Energy Buys 2,500 boe/d Belly River Assets for Net $96M
OBE•Obsidian Energy will pay net $96 million to acquire 2,500 boe/d of 76% oil production and 35 net Belly River sections, implying $38,400 per flowing boe/d and closing June 30, 2026. Adds 3.4 MMboe PDP, 13.6 MMboe 2P reserves and underpins six-well 2027 plan targeting 3,000 boe/d and $15 million free cash flow at US$72.50/bbl.
1. Acquisition Details
Obsidian Energy has entered into a purchase and sale agreement to acquire 35 net sections of Belly River light oil lands in Wilson Creek, adding approximately 2,500 boe/d of production. Total cash consideration at close is $96 million, representing an initial unadjusted purchase price of $105 million less closing adjustments, with closing anticipated June 30, 2026.
2. Reserve and Production Impact
The acquired assets carry 76% oil weighting and include 3.4 MMboe of PDP and 13.6 MMboe of 2P reserves with a 15-year reserve life index. On a pro forma basis, corporate production rises to approximately 31,400 boe/d, Belly River liquids weighting increases from 49% to 55%, and drilling inventory expands to over 100 net locations including 36 booked 2P sites.
3. Financial Metrics and Implementation
The transaction implies $38,400 per flowing boe/d and valuation multiples of 3.2x NOI at US$80/bbl WTI for 2026 and 2.1x NOI at US$72.50/bbl for 2027. A six-well program in 2027 is expected to grow acquired production to ~3,000 boe/d, generating ~$45 million NOI and $15 million free cash flow at US$72.50/bbl, while net debt to funds flow from operations remains near 1.1x by year-end 2026.
