Mr. Stephen Loukas reports

OBSIDIAN ENERGY ANNOUNCES OPERATIONAL UPDATE WITH STRONG START TO 2024 CAPITAL PROGRAM

Obsidian Energy Ltd. has provided an operational update on our first half 2024 capital program. Our program continued with development of our Willesden Green/Pembina (Cardium) assets and exploration/appraisal and development drilling in the Clearwater and Bluesky formations in Peace River. We also completed the optimization of our Viking wells that were drilled in late 2023, which showed strong production results. Development activity has increased current production to over 36,500 boe/d (based on field estimates); while cold weather in January impacted production, we are currently running slightly ahead of our planned production year-to-date with the resumption of normal operations and strong initial rates from wells onstream in February.

"We are extremely excited with the early results of our drilling in Nampa, which confirms our technical work," commented Stephen Loukas, Obsidian Energy's President and CEO. "Showing the best quality oil in our acreage to date, the subsurface team did an excellent job characterizing and predicting the potential of this area. We look forward to further delineating Nampa's significant inventory and production potential. In addition, the Pembina (Cardium) four-well 7-36 Pad achieved strong early initial production rates of over 2,000 boe/d. We believe that these results unlock significant potential for additional development in the area."

LIGHT OIL ASSETS (CARDIUM AND VIKING)

Obsidian Energy's light oil development is providing encouraging initial results as we optimize production from 2023 wells now onstream while advancing our 2024 development program to help maintain light oil production levels and fund our development program in Peace River. On balance, our Cardium program is meeting our expectations as the strong results in Pembina have been partially offset by some modest results at Willesden Green.

Pembina (Cardium)

The four (4.0 net) wells on the 7-36 Pad that were rig released in late 2023 and early 2024 are now onstream, adding low-decline production and strong returns to the Company. The results to date are especially promising with strong average initial production ("IP") 7-day rates of 417 boe/d (91 percent oil) per well and total peak pad production of over 2,000 boe/d (89 percent oil). Located in the middle of our Pembina acreage, our recent development provides strong drilling efficiencies and provides important data as we look to optimize future drilling locations in the area.

Onstream in late December 2023, the two (2.0 net) wells at the Paddy North 10-28 Pad had an average IP 30-day rate of 136 boe/d (87 percent oil). We will continue to evaluate the results of these wells for future development refinements. The remaining three (2.7 net) wells in our first half 2024 Pembina program are proceeding at the Pembina Cardium Unit 9 ("PCU#9") 6-08 Pad. Two (1.8 net) wells were rig released in January with the third (0.9 net) well currently drilling and expected to be completed at the end of February. All wells are expected to be onstream at the beginning of the second quarter. The PCU#9 provides strong consistent production additions to the Company, helping to maintain production and provide solid cash flow.

The non-operated Pembina Cardium Unit 11 ("PCU#11") (45 percent working interest) provided strong production additions in 2023. Following up on this success in 2024, Obsidian Energy is participating in a 12 (5.4 net) well program in the area, which includes 3 (1.3 net) injection wells.

Willesden Green (Cardium)

Completing the second half 2023 program, most of the wells came onstream in late December with the remaining wells in the program now on production. Originally designed as a two (2.0 net) well pad, mechanical issues when placing the liner on the 12-30 Pad necessitated re-drilling one of the locations. The two wells are now completed as planned, producing at an average IP 30-day rate of 154 boe/d (60 percent oil). In addition, the one (1.0 net) well at the 1-06 Pad that came onstream at the end of December 2023 had an IP 30-day rate of 136 boe/d (86 percent oil). The IP rates from these wells are lagging our typical Willesden Green results but provides important information for future development.

We have now also rig released the third well at the three-well 4-18 Pad in January with all three (3.0 net) wells now onstream. We also drilled two (2.0 net) wells of the three (3.0 net) wells planned at the Crimson 2-13 Pad in the first half program.

Viking

Following up on our previous success at Viking, we accelerated drilling of an eight (8.0 net) well program on the 2-22 Pad into the fourth quarter of 2023. All eight (8.0 net) wells are on production and currently contributing over 1,300 boe/d of production from the pad in February post optimization.

HEAVY OIL ASSETS (PEACE RIVER)

Our 2024 capital program in Peace River represents a significant milestone in the development and exploration/appraisal of this asset. The first half 2024 program includes 11 (11.0) net development wells targeting the Bluesky and Clearwater formations, and two (2.0 net) Clearwater exploration/appraisal wells.

Continuing our testing of the multizone heavy oil potential across our Peace River acreage, Obsidian Energy completed drilling and coring all five (5.0 net) oilsands exploration ("OSE") wells planned for our first half 2024 program. The detailed technical results from these wells help us further characterize our significant land base as we look to accelerate future development areas. Early results are highly encouraging.

Clearwater

Obsidian Energy began to unlock our Clearwater formation potential across our acreage from both a development and exploration/appraisal perspective in 2023, establishing the Dawson field as our first Clearwater development area. Based on these results, the team planned a 13 (13.0 net) well Peace River Clearwater development program in 2024 to further delineate existing prospects and add production.

Our first quarter 2024 program includes the drilling, coring and testing of two (2.0 net) exploration/appraisal wells in our Nampa area. We are extremely pleased with the early results of the Nampa 6-28 Pad (1.0 net) well, which is showing the best quality Clearwater oil to date in our Peace River area. Currently producing at an IP 15-day rate of 210 boe/d (100 percent oil and a peak rate of 282 boe/d), oil quality is 16.0o API which is expected to sell at an incremental $6.00 - $8.00/bbl pricing premium to existing Bluesky production. The second well in our first half 2024 Clearwater exploration/appraisal program at Nampa is in the process of being drilled and is expected to be online in early March.

In our Dawson development area, the last two (2.0 net) wells in the 2023 program at the 13-23 Pad produced at IP 30-day rates of 202 boe/d (peak rate: 366 boe/d) and 126 boe/d (peak rate: 207 boe/d) all at 100 percent oil. We expect to begin our 2024 development with the drilling of two (2.0 net) wells on the Dawson 7-13 Pad at the end of the first quarter of 2024.

Bluesky

The Company's 2023 Peace River Bluesky development program produced strong results across several fields, following up on previous success in Harmon Valley South ("HVS"), Cadotte and our new field at Walrus. The last well (1.0 net) in the program at the Seal 13-08 Pad was a capital efficient infill well that was drilled off the existing pad and tied into existing facilities. It is performing to expectations as it continues to clean up with a current production around 140 boe/d (100 percent oil) and an IP 30-day rate of 113 boe/d (100 percent oil). Applying new multi-leg horizontal drilling technology, we are further accessing Seal's potential with new infill wells to capture economic incremental production.

In our first half 2024 capital program, we expect to rig release nine (9.0 net) Bluesky wells, seven (7.0 net) of which will be at the Walrus field, capitalizing on our success in 2023 including delineating the lower Bluesky zone. We are currently drilling the fourth of six wells prior to spring break-up at the Walrus 15-19 Pad, where we plan to further test the deeper Bluesky zone. In addition, we expect to drill two development wells in our HVS field and analyse the results from the Bluesky OSE well to further delineate and unlock future potential in the Cadotte area.ADDITIONAL READER ADVISORIES

OIL AND GAS INFORMATION ADVISORY

Barrels of oil equivalent ("boe") 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.

TEST RESULTS AND INITIAL PRODUCTION RATES

Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. Readers are cautioned that short-term rates should not be relied upon as indicators of future performance of these wells and therefore should not be relied upon for investment or other purposes. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered preliminary until such analysis or interpretation has been completed.

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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