Obsidian Energy Ltd., Calgary, has returned to development drilling in its Viking area in central Alberta.
Citing higher commodity prices, the company returned to the light oil, horizontal development play for the first time since 2017, licensing eight 100% working interest wells and spudding the first well mid-May as part of a development program to revitalize the asset, the company said in a release.
Overall, the eight wells are expected to add 1,000 boe/d on a 30-day, initial production basis (67% light oil).
Capital expenditures for the project are about $12.5 million (Can.) with first production expected early in this year’s third quarter.
Because the light oil focused play holds a material degree of associated natural gas, the asset “offers highly economic returns with current commodity prices while providing the company with the opportunity to continue drilling through the typical spring break-up period due to favorable ground conditions in the area,” the company continued.
Obsidian operations are focused in the Esther area.