Obsidian Energy plans six-well Willesden Green program for early 2027, after a 38-well 2026

Obsidian Energy (TSX: OBE) plans to start a six-well development program on acquired lands at Willesden Green in early 2027, the company said on 30 July, repeating a plan it first set out on 2 July. Willesden Green is its light oil area in Alberta. The company's wording points to a start sometime between January and April 2027. It has not given a firmer date, a cost or expected production for the wells.

The wells follow a busy 2026. In January the company guided to a $210 million capital budget (midpoint) and 28,900 barrels of oil equivalent a day, about 55% from light oil and 45% from heavy oil.

The 2026 plan, as stated in January:

• Peace River heavy oil: 26 (26.0 net) wells, including multi-lateral open-hole producers and horizontal waterflood injectors, with $80 million of capital.
• Willesden Green light oil: 12 (12.0 net) operated wells, with $128 million allocated to light oil, including the non-operated unit below.
• Pembina Cardium Unit #11: a 10-well (4.5 net) non-operated program at roughly a 45% working interest.
• Total: 38 net operated wells across Peace River and Willesden Green.

The waterflood work is the part most open to change. Eight injection wells are planned for the first half of 2026 as part of $22 million of waterflood spending. The company also holds an option to drill nine more injectors at Dawson for $14 million, but only if results stay positive and commodity prices allow. It said it could also scale its primary drilling up or down with oil prices. Its guidance assumed WTI at US$58 in the first half of 2026 and US$62 in the second half.

The 2027 wells fit the shift in the company's portfolio since 2025. It sold its operated Pembina assets to InPlay Oil and received InPlay's 34.6% of Willesden Green Cardium Unit #2, taking it to 99.8% of that field. It has since raised $250 million of 8.125% notes due 2030 and repaid its more expensive 2027 notes.

One figure needs care. The company's reported reserves, 296.7 bcf of gas and 58.6 million barrels of oil (P50), are dated 4 February 2025. That is before the Pembina sale agreement, which would mean they may not reflect today's asset base.

The company has not said whether the 2027 program depends on oil prices, though it expected a firmer market into 2027.