About our Peace River Plays
Peace River is a high-quality stable, cold-flow heavy oil Bluesky resource with Clearwater upside. Obsidian Energy has full ownership in a large, contiguous 487 section area of land at Peace River, providing substantial opportunity for future development with supportive commodity prices and recent well results.
Some of the key attributes of the play include:
- Reliable and steady Bluesky production with shallow declines
- Cold-flow heavy oil resource developed with multi-leg horizontal wells
- Substantial owned infrastructure and multiple sales points
- Competitive royalty structure with low royalty rates
After pausing development activity for several years due to low commodity prices, we returned to Bluesky formation development at Peace River in 2021 with drilling of four wells post-acquisition of the remaining 45% interest in the area. The wells achieved strong initial-production rates, which continue over time. At production forecast and commodity strip prices (April 2022), these new wells are expected to achieve payout in under six months from start of production.
All 487 sections at Peace River are prospective for both the Bluesky formation and emerging Clearwater formation play. In 2022, we plan to drill two wells (1.5 net) in our second half development program that target the Clearwater play to further delineate our land base. Leveraging our Bluesky expertise, Clearwater development will be a key focus for our 2023 plans as we continue to appraise our land, including further exploration and development drilling to increase our future inventory of locations.
Obsidian Energy operates a contiguous and extensive acreage, containing large resource in place, within the heart of the Peace River Oilsands region.