Obsidian Energy plans six-well program on acquired Willesden Green lands for early 2027

Obsidian Energy plans a six-well development program on lands it has acquired at Willesden Green, starting in early 2027. The company said so on 2 July and again on 30 July 2026. The disclosures give a window of roughly January to April 2027, with no exact start date, and the inputs do not say what the acquisition cost or how much the program will spend.

The two statements appear to describe the same program, though the inputs do not confirm this.

Why it matters

Willesden Green is the company's light oil area. In its January 2026 guidance, Obsidian said its 2026 work there centres on the Belly River formation, where 2025 drilling "experienced strong success." It also cited a pipeline built in Open Creek in late 2025 that should lower equipment and tie-in costs. If the 2027 wells follow that approach, they would add to a base the company is already developing. That is an inference, not something the company has stated.

What the company holds

The latest reserve figures in the inputs, dated 4 February 2025, show 58.6 million barrels of oil and 296.7 billion cubic feet of gas (P50, 100% company interest). They predate the Pembina sale to InPlay Oil, which closed in April 2025, so they likely do not reflect it or the 2026 program. That sale brought InPlay's 34.6% of Willesden Green Cardium Unit #2, taking Obsidian to 99.8% of that field.

Before 2027

The 2026 plan calls for 38 net operated wells at an expected capital cost of $210 million (midpoint). The company guides to 28,900 boe/d, about 55% light oil and 45% heavy oil.

• Peace River (heavy oil): 26 wells, including 8 waterflood injectors
• Willesden Green (light oil): 12 operated wells
• Pembina Cardium Unit #11: a 10-well (4.5 net) non-operated program, at about 45% working interest

What is uncertain

Nothing in the inputs shows the 2027 timing has slipped. The company's own guidance, however, rests on assumed oil prices of US$58 per barrel in the first half of 2026 and US$62 in the second half. Management said it could scale drilling up or back depending on prices. A further nine Peace River injectors, costing $14 million, are subject to results and prices.

The balance sheet has changed since the Pembina sale. In July 2026 Obsidian added $75 million to its 8.125% 2030 notes, bringing the issue to $250 million, and used the proceeds to pay down its revolver.