An anonymous director reports

OBSIDIAN ENERGY ANNOUNCES TSX APPROVAL FOR RENEWAL OF NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted Obsidian Energy Ltd.'s notice of intention to renew its normal course issuer bid. The NCIB allows Obsidian Energy to purchase up to 7,564,767 common shares (representing 10 per cent of the company's public float, as defined by the TSX, as of Feb. 15, 2024) over a period of 12 months commencing on Feb. 29, 2024. On Feb. 15, 2024, Obsidian Energy had 77,405,038 common shares outstanding and 75,647,677 common shares in the company's public float. The NCIB will expire no later than Feb. 28, 2025.

Under the NCIB, common shares may be repurchased through the facilities of the TSX, the NYSE American stock exchange and/or alternative trading systems in Canada and the United States, or as otherwise permitted under applicable securities laws. Purchases under the NCIB will be made through open-market purchases at market price as well as by other means as may be permitted under applicable securities laws. The NCIB will be effected in accordance with the TSX NCIB rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, which contain restrictions on the number of common shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of Obsidian Energy's common shares on the applicable exchange.

The total number of common shares Obsidian Energy is permitted to purchase on the TSX is subject to a daily purchase limit of 45,793 common shares, representing 25 per cent of the average daily trading volume of 183,175 common shares on the TSX calculated for the six-month period ended Jan. 31, 2024. However, the company may make one block purchase per calendar week on the TSX which exceeds such daily repurchase restrictions. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Obsidian Energy.

The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Obsidian Energy. The company believes that, at times, the prevailing share price does not reflect the underlying value of its common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to enhance Obsidian Energy's per-share metrics and thereby increase the underlying value of the company's common shares for its shareholders.

Obsidian Energy has established an automatic securities purchase plan with a designated broker, whereby common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan and before entering into a self-imposed blackout period, the company may, but is not required to, request that the designated broker make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by Obsidian Energy prior to the blackout periods. Outside of the blackout periods, purchases are made at the discretion of the company's management. The automatic securities purchase plan constitutes an automatic plan for purposes of applicable Canadian securities legislation and has been precleared by the TSX.

The company was permitted to repurchase up to 8,073,847 common shares under its current NCIB that ran from Feb. 27, 2023, to Feb. 26, 2024. As at Feb. 15, 2024, Obsidian Energy had repurchased an aggregate of 5,353,635 common shares under its expiring NCIB on the open market at a volume-weighted average price per common share of approximately $9.30 per share.

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

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