04:58 AM EDT, 05/29/2024 (MT Newswires) -- Obsidian Energy ( OBE ) said late Tuesday it has agreed to buy about 1,700 barrels of oil equivalent per day of Clearwater production and 148 net sections of land in Alberta's Peace River area for about $76 million.

The acquisition includes $46 million for base production and $30 million for undeveloped land, to be funded through debt financing.

Expected to close by July 14, the deal brings Obsidian's total holdings to more than 680 net sections of Clearwater and Bluesky heavy oil land, the company said.

The company has updated its 2024 guidance by reducing capital expenditures and increasing production to reflect this acquisition.

Obsidian Energy ( OBE ) now expect 2024 production guidance in range of 35,650 - 37,150 boe/d from 35,250 - 36,7505 boe/d previously. While 2024 capital expenditures forecast is reduced to between $330 million and $340 million from $345 million to $355 million.

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