Obsidian Energy Rig-Releases 11 Wells, Records 16.5° API Oil Quality
Obsidian Energy’s Q1 2026 program rig-released 11 wells and expects three additional Belly River and Cardium wells online by mid-April, with Dawson waterflood injectors boosting oil quality to a record 16.5° API, 767cP. The company expanded oil hedges into Q3 above US$60 WTI and launched a share buyback.
1. First-Quarter 2026 Development
Obsidian Energy rig-released 11 net wells in Q1 2026, including five Clearwater producers, four Clearwater injectors and two Bluesky wells across Peace River fields. Three additional Belly River and Cardium wells at Willesden Green are expected online by mid-April, with IP120 rates exceeding IP30 rates as wells stabilize.
2. Clearwater Waterflood Progress
The Dawson 4-24 Clearwater waterflood pilot was commissioned with four injectors and three producers achieving a flattened production profile, and new injectors at Nampa and West Dawson are slated to begin water injection in late April. The West Dawson and Nampa pads delivered record oil quality up to 16.5° API and 767 cP viscosity.
3. Hedging and Capital Outlook
The company expanded its oil hedges into Q3 2026 at strike prices significantly above its US$60/bbl WTI budget average and launched a normal course issuer bid to repurchase shares. Management is evaluating market conditions and potential capital program expansion in the second half of the year.