Calgary-based Obsidian Energy Ltd. said Tuesday it is setting aside C$35 million ($27 million) in capital expenditures (capex) for a drilling program and C$5 million ($4 million) in decommissioning expenditures for the first half of 2021.

The exploration and production company plans to drill up to eight wells at the Cardium development in Willesden Green in Central Alberta.

“Our 2020 drilling program resulted in some of the best wells we’ve seen in the history of our Cardium program,” said CEO Stephen Loukas. “Our first half 2021 program will build on these results with most of the wells adjacent to or very near our 2020 wells, which produced excellent production rates at very low operating costs.”

Obsidian’s 2020 capex was C$56 million ($44 million) while its production...