Obsidian Energy Announces Closing of the Operated Pembina Asset Sale for ~ $320 Million

Calgary, Alberta–( April 7, 2025) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to announce that we have closed our previously announced divestiture of our operated Pembina assets (the “Pembina Assets“) to InPlay Oil Corp. (TSX: IPO) (“InPlay“) (collectively, the “Transaction“). The Company retained our non-operated holdings in the Pembina Cardium Unit #11.

Obsidian Energy Announces Closing….

Total consideration received from InPlay was approximately $320 million in three components with an effective date of December 1, 2024, as follows:

• $220 million in cash, which was reduced to $211 million after interim closing adjustments (the “Cash Proceeds“);
• $85 million of InPlay common shares (54.8 million common shares of InPlay (the “InPlay Shares“) at $1.55 per InPlay Share, which is equal to the offering price per InPlay Share under InPlay’s previously announced and completed bought deal financing for the purposes of funding of the Transaction); and
• InPlay’s 34.6 percent working interest in the Willesden Green Cardium Unit #2 (“WGCU#2“) oil field, bringing Obsidian Energy’s ownership of WGCU#2 to 99.8 percent. The additional interest is estimated by Obsidian Energy to be valued at $15 million.

“We’re pleased to have successfully completed this strategic asset rationalization as we continue to focus on growing our Peace River asset,” said Stephen Loukas, Obsidian Energy’s President and CEO. “Furthermore, the completion of this Transaction allows us to pay down our debt, thereby improving Obsidian Energy’s leverage ratio and overall liquidity position. Additionally, we are well positioned to garner additional value via future share price appreciation from our InPlay share position as we anticipate the successful integration and further development of the Pembina Assets will increase the value of InPlay’s shares.”

In connection with the completion of the Transaction and pursuant to the terms of an investor rights agreement between Obsidian Energy and InPlay, each of Stephen Loukas and Peter Scott, Obsidian Energy’s Senior Vice President and CFO, were appointed to the board of directors of InPlay.

CREDIT FACILITY UPDATE

In association with the closing of the Transaction, the Cash Proceeds were used to pay down the Company’s debt, leaving approximately $30 million drawn on our reduced $235 million syndicated credit facility (the “Credit Facility“) with Royal Bank of Canada, Bank of Montreal and ICBC Standard Bank Plc. In conjunction with the Transaction, we completed our semi-annual borrowing base redetermination, resulting in both the revolving period and maturity dates under the Credit Facility being extended by a year to May 31, 2026, and May 31, 2027, respectively.

EARLY WARNING DISCLOSURE

Immediately prior to the Transaction, the Company did not beneficially own or exercise control over any InPlay Shares. Immediately after completion of the Transaction, Obsidian Energy owns 54,838,709 InPlay Shares, representing approximately 33 percent of the issued and outstanding InPlay Shares. The Transaction did not occur through any stock exchange or other securities market. The InPlay Shares were acquired as partial consideration for the disposition of the Pembina Assets at a deemed price of $1.55 per InPlay Share for an aggregate deemed purchase price of approximately $85 million. Obsidian Energy obtained the InPlay Shares for investment purposes and may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over securities of InPlay through market transactions, private agreements or otherwise. Subject to a six-month hold period¹, the Company will evaluate various opportunities to realize additional value for Obsidian Energy shareholders.

An early warning report will be electronically filed with the applicable securities commission in each jurisdiction where InPlay is a reporting issuer and will be available on InPlay’s SEDAR+ profile at www.sedarplus.ca. For further information or to obtain a copy of the early warning report, please contact our Senior Vice President and Chief Financial Officer at (403) 777-2500 or Investor.Relations@obsidianenergy.com. InPlay’s head office is located at Suite 2000, 350 7 Avenue S.W., Calgary, Alberta T2P 3N9.

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

NT4