10:13 AM EDT, 06/11/2024 (MT Newswires) -- Obsidian Energy ( OBE ) said Tuesday it has reached an agreement in principle with the Woodland Cree First Nation.

The agreement has a term through the end of 2025, the company said.

Obsidian said it has restarted production from its Harmon Valley South field in the Peace River area. The field was producing at an approximate rate of 4,500 net barrels of oil equivalent a day before it was shut down on May 12 due to the conflict with the Woodland Cree First Nation, the company said.

"The company and the WCFN engaged in extensive discussions with the help of a mediator to arrive at a fair and equitable agreement that is beneficial to both parties," said Obsidian Chief Executive Stephen Loukas.

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