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Obsidian Energy Announces Closing of Peace River Acquisition

Press Release

Calgary, Alberta–(– June 26, 2024) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce it has closed its previously announced acquisition of approximately 1,700 boe/d (100 percent oil, based on April 2024 actual production) of Clearwater production and 148 net sections of land in the Peace River area (the “Acquisition“) from a third-party (the “Vendor“).

OBE Announces Closing of Peace River Acquisition

Total consideration paid for the Acquisition was approximately $80.5 million (inclusive of liquids inventory and closing adjustments) with an effective date of May 1, 2024. The cash consideration for the Acquisition was funded from our syndicated bank facility and a $50 million term loan (the “Term Loan“), which matures in June 2025.

“We’re pleased to have successfully completed this strategic acquisition that provides further upside and optionality within our Peace River operating area,” said Stephen Loukas, Obsidian Energy’s President and CEO. “With our expanded holdings in the region, we have identified ~200 total locations on these lands, of which 103 (including 49 proved plus probable locations) are on trend with our successful Clearwater Dawson development on the Peavine acreage. The Acquisition provides us further optionality both within our 2024-2026 three-year corporate growth plan, as well as beyond.”

ADVISORS

Royal Bank of Canada, Bank of Montreal and Canadian Western Bank provided the Term Loan financing related to the Acquisition.

RBC Capital Markets acted as exclusive financial advisor and Burnet, Duckworth & Palmer LLP acted as legal advisor to Obsidian Energy with respect to the Acquisition.

ADDITIONAL READER ADVISORIES

DRILLING LOCATIONS

This news release discloses proved and probable drilling inventory obtained from the Vendor’s Reserves Report in addition to internal analysis and account for drilling locations that have associated proved and probable reserves. The drilling locations considered for future development will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors.

OIL AND GAS INFORMATION ADVISORY

Barrels of oil equivalent (“boe“) and barrels of oil equivalent per day (“boe/d“) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

CONTACT

OBSIDIAN ENERGY
Suite 200, 207 – 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com

Investor Relations:
Toll Free: 1-888-770-2633
E-mail: investor.relations@obsidianenergy.com

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