Obsidian Energy sells Pembina assets for $320M

Obsidian Energy has finalized a deal to sell its Pembina assets to InPlay Oil for approximately C$320 million ($225 million), which includes C$220 million in cash and C$85 million in equity. This transaction is expected to lower Obsidian's net operating costs by about C$2.20 per barrel of oil equivalent and significantly reduce its debt from C$412 million to approximately C$192 million. After the sale, Obsidian will concentrate on its Peace River asset, which is projected to account for 42% of its total production and a significant portion of its reserves. The company will also retain its non-operated interests in the Pembina Cardium Unit #11 while increasing its ownership in the Willesden Green Cardium Unit #2 to 99.8%. CEO Stephen Loukas emphasized that the sale enhances financial flexibility and shareholder value creation. The transaction is set to close in the early second quarter of 2024.