Obsidian Energy Ltd. reported that its independent reserves evaluation for the year ended December 31, 2025 shows a 118 % replacement of proved developed producing (PDP) reserves, 185 % replacement of proved (1P) reserves, and 235 % replacement of proved plus probable (2P) reserves, all measured after the April 2025 disposition of the Pembina assets. The strong replacement ratios demonstrate that the company is successfully adding new reserves to offset production and to grow its long‑term asset base.
The primary drivers of the 2025 reserve additions were the waterflood pilots in the Peace River region—particularly the Clearwater pilot in Dawson—and the Belly River program in Willesden Green, which added 12 new locations and 5.6 million barrels of oil equivalent (boe). These projects reinforce Obsidian’s focus on high‑quality, low‑cost assets and support its strategy of organic growth through enhanced recovery and exploration.
The Pembina disposition removed 10,300 boe/d of production and reduced asset retirement obligations by more than $390 million, including $189 million of inactive ARO. The sale, completed in April 2025, also lowered net debt by $210.9 million and improved the company’s balance sheet, allowing Obsidian to concentrate capital on its core Peace River and Willesden Green assets.
Compared with 2024, the 2025 reserve replacement ratios are lower—PDP at 118 % versus 148 % in 2024, 1P at 185 % versus 229 %, and 2P at 235 % versus 296 %. Production context shows that Q3 2025 averaged 27,316 boe/d and Q1 2025 averaged 38,416 boe/d, indicating a decline in output that the reserve additions help to offset.
The company’s finding and development (F&D) costs for 2025 were $25.70/boe for PDP, $19.44/boe for 1P, and $20.68/boe for 2P, while finding, development and acquisition (FD&A) costs were ($0.87)/boe for PDP, $11.71/boe for 1P, and $9.09/boe for 2P. Lower commodity prices in 2025 pushed the expected operating netback to $27.48/boe, prompting Obsidian to moderate its capital program in the second half of the year.
President and CEO Stephen Loukas described the year as “transformational,” noting that organic activity more than replaced production and that the waterflood and Belly River additions are key to sustaining long‑term growth. The company’s focus on high‑quality, low‑cost assets and disciplined capital allocation positions it to capitalize on future price recoveries while maintaining financial flexibility.
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