Mr. Stephen Loukas reports

OBSIDIAN ENERGY ANNOUNCES OFFERING AND PRICING OF $175 MILLION, 5-YEAR SENIOR UNSECURED NOTES DUE IN 2030 AND REDEMPTION OF EXISTING $80.8 MILLION SENIOR UNSECURED NOTES DUE IN 2027

Obsidian Energy Ltd. has entered into an underwriting agreement to sell, on a private placement basis, $175.0-million aggregate principal amount of 8.125 per cent five-year senior unsecured notes due Dec. 3, 2030. The notes will be issued at par under a trust indenture and will be direct senior unsecured obligations of Obsidian Energy ranking equal with all other present and future senior unsecured indebtedness of the company. Closing of the offering is expected to occur on or about Dec. 3, 2025, subject to satisfaction of customary closing conditions.

Subject to completion of the offering, the net proceeds of the offering will be used to redeem its existing $80.8-million, 11.95 per cent senior unsecured notes due July 27, 2027, to pay down indebtedness under its syndicated credit facility and to pay related transaction expenses. Postcompletion of the offering, the company's syndicated credit facility of $235-million will be approximately $5-million drawn. Obsidian Energy has also today given notice of redemption of the 2027 notes, as required under the trust indenture governing the 2027 notes, which redemption is conditional upon the successful closing of the offering.

"Given the strength in the credit markets, the company took the opportunity to refinance our unsecured notes at a considerably lower interest rate than our previous note issue," commented Stephen Loukas, Obsidian Energy's president and chief executive officer. "This refinancing further strengthens our already solid balance sheet during this period of commodity price volatility. Additionally, it provides significant flexibility to grow our production at Peace River and Willesden Green when prices are appropriate to doing so, further our enhanced oil recovery opportunities and continue with our shareholder return initiatives."

BMO Capital Markets and RBC Capital Markets are acting as bookrunners for the offering. The notes are being offered in each of the provinces of Canada and in the United States on a private placement basis. The notes are not qualified for distribution to the public or registered under the securities laws of any province or territory of Canada or in the United States. They are only offered in the provinces of Canada and in the United States pursuant to applicable exemptions from the prospectus and registration requirements thereunder.

About Obsidian Energy Ltd.

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The company's business is to explore for, develop and hold interests in oil and natural gas properties, and related production infrastructure, in the Western Canada sedimentary basin.

Obsidian Energy is headquartered in Calgary, and is listed on the Toronto Stock Exchange and NYSE American.

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