About the Viking Play

The Viking stands out as a sweet, light oil development play with a material degree of associated natural gas located in central Alberta. As a result, this asset offers highly economic returns with current commodity prices while providing the Company with the opportunity to continue drilling through the typical spring break-up period due to favourable ground conditions in the area.

Some of the key attributes of the play include:

• Significant drilling inventory, including both low risk infill and step-out development
• Low DCET well costs, combined with owned and controlled infrastructure and direct market access yields superior netbacks
• Shallow, low geological risk resource play
• Close to multiple, successful offset producers

In May of 2022, we returned to development drilling in our Viking area, licensing eight 100% working interest wells and spudding the first well mid-month as part of a development program to revitalize this asset. We plan to spend approximately $12.5 million in capital expenditures for  Viking development area over 2022 with first production expected early in the third quarter.  Overall, the eight wells are expected to add approximately 1,000 boe/d on a 30-day, initial production basis (67 percent light oil).

As commodity prices remain strong, we have ample capacity for further Viking development with our strong established inventory of quality locations and 100% ownership of oil and gas infrastructure in the region.

Obsidian operations are focused in the Esther area.