Mr. Stephen Loukas reports

OBSIDIAN ENERGY SETS RECORD STRAIGHT REGARDING WOODLAND CREE FIRST NATION MISLEADING STATEMENTS

Obsidian Energy Ltd. has expressed its deep disappointment with the Woodland Cree First Nation senior leadership's misleading statements issued in a news release yesterday and its decision to address what Obsidian believes to be the WCFN's commercial concerns in this manner.

Negotiations between Obsidian Energy and the WCFN regarding a new economic relationship agreement commenced during the second quarter of 2023. In connection with those negotiations and at the request of the WCFN, Obsidian Energy arranged a meeting for Nov. 9, 2023, to discuss certain previously disclosed seismic events. Unfortunately, the WCFN cancelled the meeting 30 minutes in advance of its scheduled time, postponing it until some time in early 2024 or upon the execution of an economic relationship agreement between Obsidian Energy and the WCFN. As of today, the WCFN has not proposed a date to reschedule the meeting.

Obsidian Energy has a strong history of responsible operations and a commitment to safeguarding people and the environment. As previously disclosed, the company complied and continues to comply with the Alberta Energy Regulator's environmental protection order regarding a produced water disposal well by establishing seismic monitoring and accelerometers at its operations near Peace River. It also developed action and mitigation plans, and continues to review and analyze additional data pertaining to seismicity.

On Feb. 7, 2024, the AER, pursuant to its regulatory appeal of the order, scheduled a hearing to commence on Nov. 27, 2024, to review the order and whether it should be confirmed, varied, suspended or revoked. As previously disclosed, Obsidian Energy's well has operated safely and within regulations for more than a decade. The well is licensed and operated with full regulatory approval and in accordance with standard industry practice. Obsidian Energy continues to disagree with the conclusions of the order.

Obsidian Energy also encourages the WCFN senior leadership to resume negotiations toward a mutually beneficial economic relationship agreement that builds on a revenue stream for Woodland Cree First Nation-owned businesses, which has amounted to $4.3-million in 2023 and over $8-million since late 2021 (when the company acquired full control of the Peace River asset). Considering its publicly announced Peace River three-year growth plan, a formal economic relationship agreement offers the potential for significant benefit and employment opportunities for the WCFN and local communities.

"We have unfortunately reached a negotiating impasse with WCFN's senior leadership," said Stephen Loukas, Obsidian Energy's president and chief executive officer. "Obsidian Energy has informed WCFN's senior leadership that we cannot accept their unrealistic terms that amount to a monopolistic relationship as our sole provider of certain services and as a collector of commissions for incremental services already provided to us by other companies. In addition to limiting our ability to operate independently in the area, their proposal is not beneficial to our stakeholders, including our shareholders, local communities and other indigenous groups."

Mr. Loukas continued: "Obsidian Energy has had long-standing positive relationships with multiple indigenous groups, including the WCFN. While WCFN senior leadership rejected our most recently proposed economic relationship agreement, we are open to meeting with WCFN senior leadership to further discuss the potential for an agreement. Regardless, Obsidian Energy has the ability to pursue existing regulatory processes to obtain the required permits and licences to execute on our three-year growth plan. Additionally, we have the flexibility to accelerate other Peace River locations within our extensive portfolio to achieve our growth objectives."

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American in the United States under the symbol OBE.

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