Obsidian Energy (OBE) said Tuesday it has agreed to acquire Belly River light oil assets in the Wilson Creek area of Willesden Green from Highwood Asset Management for an unadjusted purchase price of 105 million Canadian dollars ($75.8 million).

The company said the deal, expected to close around June 30, includes about 2,500 boe/d of production, 76% of which is oil, and 35 net sections of land.

The acquisition, which would be funded through existing cash and credit facilities, will increase its Willesden Green land position to about 290 net sections and lift corporate production to roughly 31,400 boe/d based on the midpoint of its 2026 guidance, the company said.

Obsidian Energy said the agreement also includes a contingent value payment of up to CA$7 million tied to future WTI oil prices, payable between Q3 and Q2 2027.