Mr. Stephen Loukas reports

OBSIDIAN ENERGY ANNOUNCES SECOND HALF CAPITAL PROGRAM UPDATE

Obsidian Energy Ltd. has provided an operational update on its second half 2025 capital program. The company is currently operating two rigs in Peace River and one rig in Willesden Green, and has rig released 13 (13.0 net) wells of the company's 28-(28.0-net)-well second half 2025 capital program.

• Initial results from H2 2025 drilling program above internal expectations;
• Commencement of water injection on pilots in both the Bluesky and Clearwater formations at Peace River;
• Record seven-day production average in Peace River of approximately 14,500 barrels of oil equivalent per day.

"Our second half 2025 development program is off to an excellent start," said Stephen Loukas, Obsidian Energy's president and chief executive officer. "Production results from the six wells that have reached 30 days of production are all well ahead of predrill expectations, supporting a record seven-day production average in Peace River of approximately 14,500 boe/d. In addition to these strong primary results, we have started injecting water at both our Bluesky and Clearwater pilots, and are excited for the opportunity to implement our findings on a larger scale. At Willesden Green, we are drilling the first Belly River well at Crimson and remain encouraged by the potential of this area. With our early operational success, we are well positioned to meet our second half production guidance"

Mr. Loukas continued, "In addition, the successful monetization of our InPlay Oil Corp. shares (at a value above the issue price) allowed us to maintain our strong liquidity position while redeeming $30-million of senior unsecured notes in August, providing additional go-forward interest expense savings."

Revised net debt guidance

The company has revised its year-end 2025 net debt guidance to $213-million from $295-million, which reflects the monetization of our InPlay shares for $91-million and the company's recent share buybacks. The company has now bought back and cancelled 7.1 million shares which is the maximum number of shares allowed under its current normal course issuer bid (NCIB) approval and completes this program. The company expects to renew its NCIB in March, 2026.

Heavy oil asset highlights

The company's Peace River asset has seen steady activity during the third quarter of 2025, with two drilling rigs currently operating. Obsidian has rig released 11 (11.0 net) Clearwater and two (2.0 net) Bluesky wells from our second half 2025 program with 11 (11.0 net) of these wells on production (9.0 net Clearwater and 2.0 net Bluesky). Of the second half wells that are on production, six (6.0 net) wells have achieved initial production (IP) rates as follows:

• Harmon Valley South (HVS) 14-07 pad (Bluesky) -- Two (2.0 net) well pad offsetting successful H1 2025 drills have achieved an average IP30 per well of 385 boe/d (98 per cent oil).
• Dawson 4-24 Pad (Clearwater) -- Two (2.0 net) follow-up wells with an average IP30 per well of 316 boe/d (100 per cent oil). This pad now has five (5.0 net) primary producers and two (2.0 net) water injectors.
• Dawson 13-23 Pad (Clearwater) -- The first two (2.0 net) wells of this additional five (5.0 net) well drilling program from this existing pad, have an average IP30 per well of 298 boe/d (100 per cent heavy oil).

Additionally, the company has achieved significant milestones on its enhanced oil recovery (EOR) initiatives with a two-(2.0-net)-well Bluesky injector pilot at the HVS 9-25 pad operational and the start of water injection on its two (2.0 net) well integrated Clearwater waterflood pilot on the Dawson 4-24 pad.

Light oil asset highlights

In Willesden Green, the company is drilling the first horizontal Belly River well in the Crimson field. This location is the first of its eight (8.0 net) well operated program in the area which also includes one (1.0 net) Mannville well at Crimson and six (6.0 net) wells at Open Creek; consisting of four (4.0 net) Cardium wells and two (2.0 net) Belly River wells. In support of the company's renewed focus at the Open Creek field, a regional infrastructure project is under construction and progressing as planned.

Hedging update

In the third quarter of 2025, the company added new oil and gas contracts to help mitigate the risk of potentially lower commodity prices. Currently, the company has the following contracts outstanding on a weighted average basis.

Peters & Co. Ltd. conference and updated corporate presentation

Obsidian Energy will be participating in the 29th Annual Peters & Co. annual energy conference from Tuesday, Sept. 9, to Wednesday, Sept. 10, 2025, in Toronto, Ont., at the Ritz-Carlton Hotel. Stephen Loukas, president and chief executive officer, will discuss the company in a presentation at 8:30 a.m. ET (6:30 a.m. MT) on Tuesday, Sept. 9, 2025. Mr. Loukas along with Peter Scott, senior vice-president and chief financial officer, and Gary Sykes, senior VP, commercial and development, will also be hosting one-on-one meetings at the conference.

Obsidian Energy will post an updated corporate presentation on the company's website.

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