Calgary, Alberta — February 5, 2026 — Leads & Copy —
OBSIDIAN ENERGY LTD. announced the results of its independent reserves evaluation for the year ended December 31, 2025. The 2025 Reserve Report was prepared by GLJ Ltd.
The company had a solid reserve replacement with 118 percent on a proved developed producing (PDP) reserves basis, 185 percent on a proved (1P) reserves basis and 235 percent on a proved plus probable (2P) reserves basis, based on 2025 production (adjusted for dispositions) and driven by the impact of drilling infill wells and field extensions in both Peace River and Willesden Green.
The company had reserve replacement of 118 percent, 185 percent and 235 percent of 2025 production (adjusted for dispositions) on a proved developed producing (“PDP”), proved (“1P”), and proved plus probable(“2P”) reserves basis.
The company added locations in the Willesden Green (Belly River) in both Crimson and Open Creek based on 2025 success.
Initial waterflood reserve bookings came from recent pilots at Peace River in the Clearwater.
According to Stephen Loukas, Obsidian Energy’s President and CEO, the reserves report reflects what was a transformational year at the Company given the disposition of its Pembina asset in April 2025. He added that organic activity once again more than replaced production across all reserve categories despite moderating the capital program in the second half of the year in response to lower commodity prices. The Pembina disposition had a material impact on our results as it represented approximately 35 percent of the Company’s reserve volumes but importantly reduced corporate decommissioning liabilities by over half and significantly improved our balance sheet strength and liquidity position. Loukas said the company is pleased with both the waterflood additions that were added in Peace River, and recognition of the emerging Belly River play in Willesden Green.
The 2025 capital program consisted of further development and delineation in both Peace River and Willesden Green. In the first half of the year, the company focused on primary development as well as exploration in Peace River, specifically in Harmon Valley South (“HVS”) and Dawson. The program in the second half of the year was balanced between heavy and light oil assets with continued development in Peace River, particularly in the Clearwater, in addition to advancing waterflood initiatives with one pilot in Dawson (Clearwater) and another in HVS (Bluesky). In Willesden Green, the company was active in Open Creek, including drilling initial wells in the emerging Belly River formation with strong results.
Peace River reserves continued to increase and benefitted from waterflood projects, which increased reserves on a 2P basis by 3.5 million boe, particularly in Dawson. The Company is anticipating future additions as our waterflood initiatives expand.
The Belly River program in Willesden Green added 12 locations in 2025 and 5.6 million boe where previously minimal locations were booked. As the program scope expands in the area, the Company expects to continue to add future locations to the reserves book.
Reserves before-tax net present value discounted at 10 percent (“NPV10”) were impacted by the Pembina disposition and a lower oil price forecast. The reduction in value on a per share basis was mitigated by strong reserve additions and our share buyback program.
Future Development Capital (“FDC”) is moderated in both the 1P and 2P reserve categories to reflect the current commodity price environment, the Pembina disposition and anticipated capital spending levels. FDC generates a five-year program of approximately $243 million per year on a 2P reserve basis.
The company’s total undeveloped 2P reserve locations (excluding the impact of the Pembina disposition) increased by 39 net locations to 357 total net locations booked, with 22 net new locations in Willesden Green and 20 net new location in Peace River offset by a reduction of 3 net locations in Viking.
Reserve life index (“RLI”) continues to be stable with approximately 6.0, 10.1 and 13.3 years on a PDP, 1P, and 2P reserves basis.
Finding & Development (“F&D”) costs including changes in FDC were $25.70/boe for PDP, $19.44/boe for 1P and $20.68/boe for 2P. Finding, Development and Acquisition (“FD&A”) costs including changes in FDC were ($0.87)/boe for PDP, $11.71/boe for 1P and $9.09 /boe for 2P. FD&A costs are lower than F&D costs (and negative for PDP) primarily due to the removal of FDC associated with the Pembina disposition.
Lower oil prices impacted the expected 2025 operating netback of $27.48/boe. As a result, the 2025 recycle ratios for F&D (including changes in FDC) were 1.1x for PDP, 1.4x for 1P and 1.3x for 2P.
Corporate decline rate on a PDP basis was relatively unchanged year-over-year at 23 percent in 2025 compared to 22 percent in 2024.
Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company’s business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.
Obsidian Energy is headquartered in Calgary and listed on the Toronto Stock Exchange and NYSE American (TSX / NYSE American: OBE).
Source: Obsidian Energy
