Yes, I believe it would work very well, almost a poor-man’s masonry heater. An old member
@Nick Mystic has almost exactly this setup, an Oslo shoved way back into a very tight opening in a fully-interior masonry fireplace. He loves it, but I don’t think we’ve seen Nick on the forum, recently.
You can see I’m from the mid-Atlantic region, where houses are traditionally built with fireplaces in each end (gable) wall of the house. The guys up in New England probably tend to assume the opposite, their traditional construction usually had a single masonry structure in the center of the house, to carry all of the fireplaces. I see you’re in OR, where nothing is old or traditional (even by US standards), so it’s interesting to see your builder went the New England route.