CALGARY, May 6, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, OTCQB – OBEL) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce our first quarter 2020 financial and operational results. All figures are in Canadian dollars unless otherwise stated. Obsidian Energy's unaudited interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") as at and for the three months ended March 31, 2020 can be found on our website at www.obsidianenergy.com. The documents will also be filed on SEDAR and EDGAR in due course.

FINANCIAL AND OPERATING HIGHLIGHTS

MESSAGE TO SHAREHOLDERS

Obsidian Energy had a successful operational and financial start to the year, yielding strong results for the first quarter and achieving a number of significant operational and financial milestones. As previously announced, the Company successfully renegotiated the terms of our syndicated credit facility, senior notes and Calgary office lease at the end of the quarter which will provide the Company with additional go-forward financial flexibility. Operationally our team completed a successful ten well drilling program, with some of the strongest initial rates we have seen to date in our multi-year Cardium program. The full effect of the cost saving initiatives implemented throughout 2019 were demonstrated by the 19% decrease in general and administrative costs and the 11% decrease in operating costs from the first quarter of 2019. These efforts better position the Company to help withstand the market volatility at this crucial time for our industry.

The demand destruction caused by the COVID-19 global pandemic and the potential supply increase from the OPEC+ price war has caused a significant decrease in oil prices and Obsidian Energy has reacted quickly to this significant change in market conditions. At this time, our plan is to significantly limit further capital spending for the foreseeable future, temporarily shut-in uneconomic production and to continue to optimize all aspects of our business to reduce costs and maintain financial liquidity during this challenging time. The Board of Directors and executive team implemented a temporary salary reduction of 20% across all head office staff and a 10% reduction for field staff. In addition, the Company has suspended the employer contributions to the Employee Retirement Savings Plan and the Board of Directors have taken a temporary 10% reduction on their annual retainer fees. These initiatives have reduced operating costs by over $8 million and personnel costs by approximately $10 million if annualized. 

The Company has applied for the Canadian Emergency Wage Subsidy (CEWS), a program announced by the federal government in which eligible companies may receive a subsidy of 75% of employee wages (up to a cap) for up to 12 weeks, applicable from March 15, 2020, to June 6, 2020. We have also applied for support under the Alberta Site Rehabilitation Program through our service providers. This program, which is primarily funded by the federal government's COVID-19 Economic Response Plan, is expected to further allow the Company to continue well, pipeline, and infrastructure abandonment and reclamation projects by providing grants directly to service companies.  Applications for these grants are subject to certain maximums and may be eligible for up to 100 per cent government funding. We will continue to watch for further details of all federal government support packages available to the Company and will seek further support as appropriate.

Operationally the Company continues to conduct detailed evaluations of our producing assets and will shut-in production where economic thresholds are not met. As of May 1, 2020, the Company has shut-in 3,784 boe/d across its properties, predominantly within our Peace River heavy oil asset. Shut-ins are being conducted in a manner that will allow production to be restarted in an efficient manner as oil prices recover.

FIRST QUARTER RESULTS

• FFO in the first quarter of 2020 totaled $37 million ($0.51 per share) compared to $54 million ($0.74 per share) for the fourth quarter of 2019 and $36 million ($0.50 per share) for the first quarter of 2019.  The decline from the fourth quarter of 2019 is due to lower crude oil prices, specifically in March, as a result of the impact on demand from the COVID-19 pandemic as well as transaction expenses associated with execution of the credit facility, noteholder and amended Calgary lease agreements.
  
  
• Average production was 27,092 boe/d compared to 26,639 boe/d in the fourth quarter of 2019 and 27,651 boe/d in the first quarter of 2019. The Company continued to progress on our Cardium development program and brought five of ten wells drilled in the quarter on production by the end of March. See below for a detailed breakdown on the production components.
  
  
• Capital expenditures, excluding decommissioning liabilities, totaled $41 million, which included drilling ten development wells in Willesden Green and various optimization activities.
  
  
• Operating costs were $12.04 per boe in the first quarter of 2020 compared to $13.49 per boe in the first quarter of 2019. The Company continued to drive costs down across several categories which resulted in efficiencies and the lower result. This was partially offset by the impact of extreme cold weather across Alberta in January, which resulted in increased power and repair and maintenance costs.
  
  
• General and administrative costs were $1.63 per boe in the first quarter of 2020 compared to $2.01 per boe in the first quarter of 2019. The Company has been successful on a number of cost reductions initiatives throughout 2019 which are being realized in 2020.
  
  
• Net Debt totaled $517 million, including $407 million drawn on our syndicated credit facility and $67 million of senior notes. In March 2020, the Company executed final agreements resulting in the renewal of our syndicated credit facility, amendments to our senior notes and renewed terms on our Calgary office lease.
  
  
• Net Loss was $746 million during the first quarter of 2020 and was due to $763 million of non-cash, property, plant and equipment (PP&E) impairments resulting from lower forecasted commodity prices. Impairment losses related to PP&E may be reversed in future periods if commodity prices forecasts improve.

2020 DEVELOPMENT PROGRAM AND OPERATIONS UPDATE

As previously announced in our Corporate and Operational update dated April 23, 2020, Obsidian Energy completed its first half capital program successfully and safely in the first quarter. All ten completed wells are on production or are ready to produce as pricing improves. Wells with production rates in the table below are currently producing.

In response to the volatility of commodity prices amid the COVID-19 pandemic, all previously announced shut-ins were completed by May 1, 2020 as follows:

Obsidian Energy continues to monitor the commodity price environment and evaluate our portfolio to improve the overall financial flexibility of the business. The Company is prepared to take further action to shut-in additional production should oil prices not improve in the near term. Alternatively, we can quickly restart shut-in production once oil prices permit doing so. Our current first half 2020 guidance is provided below. Given the current volatility in the commodity markets we are not providing full year guidance at this time. We will provide updates as further production or financial decisions are implemented.

2020 HEDGING PROGRAM

In 2020, the Company has the following hedges in place:

ANNUAL GENERAL MEETING

The Company is pleased to announce that its Annual General Meeting ("AGM") will be scheduled for Thursday, July 30, 2020 at 10:00 am (Mountain Time), pursuant to the extension granted by the Toronto Stock Exchange.  It is our intention to hold our AGM in person at the offices of Obsidian Energy depending on the Alberta Health guidelines in place on public gatherings at that time, and therefore the Company is reserving the right to restrict access to our AGM and/or conduct the AGM in a virtual format.  Further announcements and information regarding the AGM will be made in due course.  In addition, all information and documents that would normally be filed or delivered by the Company in connection with our AGM, including but not limited to our annual and interim request forms and executive compensation disclosure, will be delayed until the dissemination of our AGM materials on or about June 30, 2020, pursuant to exemptions provided by applicable securities regulators, including Alberta Securities Commission Blanket Order 51-518.

UPDATED CORPORATE PRESENTATION

For further information on these and other matters, Obsidian Energy has posted an updated Corporate Presentation which can be found on its website, www.obsidianenergy.com. 

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.

NON-GAAP MEASURES

Certain financial measures including FFO, FFO per share-basic, FFO per share-diluted, netback and net debt, included in this press release do not have a standardized meaning prescribed by IFRS and therefore are considered non-GAAP measures; accordingly, they may not be comparable to similar measures provided by other issuers. FFO is cash flow from operating activities before changes in non-cash working capital, decommissioning expenditures, office lease settlements, the effects of financing related transactions from foreign exchange contracts and debt repayments and certain other expenses and is representative of cash related to continuing operations. FFO is used to assess the Company's ability to fund its planned capital programs. See "Calculation of Funds Flow from Operations" below for a reconciliation of FFO to cash flow from operating activities, being its nearest measure prescribed by IFRS. Netback is the per unit of production amount of revenue less royalties, operating expenses, transportation expenses and realized risk management gains and losses, and is used in capital allocation decisions and to economically rank projects. Net debt is the total of long-term debt and working capital deficiency and is used by the Company to assess its liquidity.

CALCULATION OF FUNDS FLOW FROM OPERATIONS

ABBREVIATIONS

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. Please note that initial production and or peak rates are not necessarily indicative of long-term performance or ultimate recovery.  In particular, this document contains forward-looking statements pertaining to, without limitation, the following: that the unaudited interim consolidated financial statements and MD&A will be filed in due course on SEDAR and EDGAR; the culmination of costs savings from 2019 and through 2020 to date better position the Company to help withstand the market volatility at this crucial time for our industry; that the Company plans to significantly limit further capital spending for the foreseeable future, temporarily shut-in production  and to continue to optimize all aspects of our business to reduce costs and maintain financial liquidity during this challenging time; that the Alberta Site Rehabilitation Program, is expected to further allow the Company to continue well, pipeline, and infrastructure abandonment and reclamation projects by providing grants directly to service companies, which will be subject to certain maximums and may be eligible for up to 100 percent of government funding; that we will continue to watch for further details of all federal government support packages available to the Company and will seek further support as appropriate; that the Company will shut-in production where economic thresholds are not met and for those that are shut-in, that they are being suspended in such a way that will allow production to be restarted in an efficient manner as oil prices recover; that impairment losses related to PP&E can be reversed in future periods if commodity prices forecasts improve; our first half guidance including production, capital and decommissioning expenditures, operating and general and administrative costs; and that we will provide updates as further production or financial decisions are implemented; and the date of our AGM, when the applicable materials can be expected for it and how the meeting will be conducted.

With respect to forward-looking statements contained in this document, the Company has made assumptions regarding, among other things: we will have the ability to continue as a going concern going forward and realize our assets and discharge our liabilities in the normal course of business; that the Company does not dispose of or acquire material producing properties or royalties or other interests therein; the impact of the Alberta government mandated curtailment of crude oil and bitumen production; the impact of regional and/or global health related events, including the ongoing COVID-19 pandemic, on energy demand; that the Company's operations and production will not be disrupted by circumstances attributable to the COVID-19 pandemic and the responses of governments and the public to the pandemic; global energy policies going forward, including the continued agreement of members of OPEC, Russia and other nations to adhere to existing production quotas or further reduce production quotas; our ability to qualify for government programs created as a result of the COVID-19 pandemic and obtain financial assistance therefrom and the impact of those programs on our financial condition; our ability to execute our plans as described herein and in our other disclosure documents and the impact that the successful execution of such plans will have on our Company and our stakeholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels, including that we will not be required to shut-in additional production due to the continuation of low commodity prices or the further deterioration of commodity prices and our expectations regarding when commodity prices will improve such that shut-in properties can be returned to production; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, wild fires, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including that the revolving period and term out period of our credit facility are not accelerated, that the maturity date of our senior notes is not accelerated, that our borrowing base is not decreased under our credit facility, our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we are not able to continue as a going concern and realize our assets and discharge our liabilities in the normal course of business; the possibility that the Company will not be able to continue to successfully execute our business plans and strategies in part or in full, and the possibility that some or all of the benefits that the Company anticipates will accrue to our Company and our stakeholders as a result of the successful execution of such plans and strategies do not materialize; the possibility that the Company is unable to complete one or more of the potential transactions being pursued pursuant to our ongoing strategic alternatives review process, including the potential disposition of assets, on favorable terms or at all; the possibility that the Company does not qualify for one or more government assistance programs implemented in connection with the COVID-19 pandemic and other regional and/or global health related events, or that the impact of such programs falls below our expectations; the impact on energy demand of regional and/or global health related events, including the ongoing COVID-19 pandemic and the responses of governments and the public to the pandemic, including the risk that the amount of demand destruction and/or the length of the decreased demand exceeds or expectations; the possibility that the revolving period and term out period of our credit facility and the maturity date of our senior notes is accelerated, that the borrowing base under our credit facility is reduced, that the Company is unable to renew our credit facilities on acceptable terms or at all and/or finance the repayment of our senior notes when they mature and/or obtain debt and/or equity financing to replace one or both of our credit facilities and senior notes; the possibility that we breach one or more of the financial covenants pursuant to our agreements with our lenders and the holders of our senior notes; the possibility that we are forced to shut-in additional production or continue existing production shut-ins longer than anticipated, whether due to commodity prices failing to rise or decreasing further or changes to existing government curtailment programs or the imposition of new programs; the risk that OPEC, Russia and other nations fail to adhere to existing production quotas or agree to new production quotas to balance supply and demand fundamentals for crude oil; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, April 23, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX: OBE, OTCQB: OBEL) ("Obsidian Energy", the "Company", "we", "us" or "our") has taken further proactive action to shut-in currently uneconomic production with a focus on preserving its balance sheet and improving financial flexibility. Additionally, the Company releases the date of its first quarter 2020 results.

Production Shut-In Program & Operational Update

Obsidian Energy's operations are very flexible and allow the Company to respond quickly to the current commodity price environment by shutting-in production at minimal cost without risk of long-term reservoir impairment. In order to improve the ongoing business performance of the Company in these conditions, the following volumes will be shut in by May 1, 2020: 

Given the current volatility in oil prices, Obsidian Energy is prepared to take further action to shut-in additional production should oil prices not improve in the near term. Alternatively, we can quickly restart shut-in production once oil prices permit doing so. We will further update our guidance should any of those decisions be implemented.

The Company's capital program for the first half of 2020 has been successfully and safely completed.  All ten development wells drilled in our program are on production or are ready to produce as desired by the Company.  As with our base production, our new wells are highly tolerant of temporary production shut-ins and volumes can be adjusted or curtailed as pricing conditions warrant.

First Half 2020 Production and Cost Guidance

As a result of these production shut-in decisions, and our continued and extensive focus on cost reductions, further development drilling in 2020 has been deferred until pricing conditions justify the investment.  In addition, since the beginning of 2020 we have successfully removed costs across several areas, including (prior to any shut-in production) an additional $8 million from our original operating cost estimate for the first half of the year due to increased efficiencies and reduced production volumes.

First Quarter 2020 Results Date

Obsidian Energy is expected to release its first quarter 2020 financial and operational results before North American markets open on Wednesday, May 6, 2020. In addition, the first quarter management's discussion and analysis and the unaudited consolidated financial statements will be available on our website at www.obsidianenergy.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov on or about the same date.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. Please note that initial production and/or peak rates are not necessarily indicative of long-term performance or ultimate recovery. In particular, this presentation contains, without limitation, forward-looking statements pertaining to the following: our focus on preserving our balance sheet and improving financial flexibility with our shut-in program; that we have flexible operations which allows the Company to respond quickly to the current commodity price environment by shutting-in production at minimal cost without risk of long-term reservoir impairment; which volumes will be shut-in by May 1, 2020; that we are prepared to take further action to shut-in additional production should oil prices not improve in the near term or that we can quickly restart shut-in production once oil prices permit doing so and that we will further update our guidance should any of those decisions be implemented; that our new wells are highly tolerant of temporary production shut-ins and volumes can be adjusted or curtailed as pricing conditions warrant; that further development drilling in 2020 has been deferred until pricing conditions justify the investment; our updated guidance for production, capital and decommissioning expenditures, and operating and general and administrative costs; and when and where we expect to release our first quarter 2020 financial and operational results as well as the other associated documents.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things: we will have the ability to continue as a going concern going forward and realize our assets and discharge our liabilities in the normal course of business; our ability to complete asset sales and the terms and timing of any such sales; the Alberta government mandated production curtailment; the impact of regional and/or global health related events on energy demand; global energy policies going forward; the economic returns that we anticipate realizing from expenditures made on our assets; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future capital expenditure levels; future crude oil, natural gas liquids and natural gas production levels; drilling results; future exchange rates and interest rates; future taxes and royalties; the continued suspension of our dividend; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully; our ability to obtain financing on acceptable terms, including our ability to renew or replace our reserve based loan; that we are able to move forward through the various reconfirmation, redetermination dates with the credit facility and our ability to finance the repayment of our senior secured notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although Obsidian Energy believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Obsidian Energy can give no assurances that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; the possibility that the semi-annual borrowing base re-determination under our reserve-based loan is not acceptable to the Company or that we breach one or more of the financial covenants pursuant to our amending agreements with holders of our senior secured notes; the impact that any government assistance programs could have on the Company in connection with, among other things, the COVID-19 pandemic and other regional and/or global health related events; the possibility that we are not able to continue as a going concern and realize our assets and discharge our liabilities in the normal course of business; the impact on energy demands due to regional and/or global health related events; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; reliance on third parties; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Obsidian Energy, or its operations or financial results, are included in the Company's Annual Information Form (See "Risk Factors" and "Forward-Looking Statements" therein) which may be accessed through the SEDAR website (www.sedar.com), EDGAR website (www.sec.gov) or Obsidian Energy's website.

Unless otherwise specified, the forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward.

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SOURCE Obsidian Energy Ltd.

CALGARY, April 1, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") received notification from the New York Stock Exchange (the "NYSE") that the Company has not regained compliance with the NYSE's continued listing standard regarding share price pursuant to Rule 802.01C of the NYSE's Listed Company Manual. As a result, OBE.BC shares have been suspended from trading on the NYSE effective immediately. To facilitate trading for our United States based shareholders, Obsidian Energy's common shares will begin trading on the OTCQB under the symbol OBELF on April 2, 2020 and will remain trading on the Toronto Stock Exchange under the symbol OBE.

The significant change in the macro economic environment has contributed to a reduction in the Company's share price. If our share price improves to average over US$0.25 per share for 30 consecutive days, we will move to the OTCQX market. The move in listing from the NYSE to the OTCQB is expected to result in on-going cost savings of approximately $1 million per year at this time. The transition to the OTC markets will not affect the Company's business operations or our current Securities and Exchange Commission reporting obligations and does not conflict with or cause an event of default under any of the Company's material debt or other agreements. 

Forward-Looking Statements
Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbor" provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target", "pursue" and similar words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to, without limitation, that the Common Shares will commence trading on the OTCQB on April 2, 2020 and will remain trading on the Toronto Stock Exchange under the symbol OBE; that if our share price improves to average over US$0.25 per share for 30 consecutive days, we will move to the OTCQX market; the expected costs saving to the Company by moving to the OTCQB; and that the OTC markets will not affect the Company's business operations or our current Securities and Exchange Commission reporting obligations and does not conflict with or cause an event of default under any of the Company's material debt or other agreements.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Important factors that could cause actual results and events to differ from those described in the forward‑looking statements can be found in our public filings (including our Annual Information Form) available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, March 30, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", "we", "us" or "our") announces that we have filed with Canadian securities regulatory authorities our audited Consolidated Financial Statements for the year ended December 31, 2019 and related Management's Discussion and Analysis.  Obsidian Energy has also filed our Annual Information Form for the year ended December 31, 2019, which includes the disclosure and reports relating to reserves data and other oil and gas information required pursuant to National Instrument 51-101. Obsidian Energy's Annual Report on Form 40-F for the year ended December 31, 2019 has been filed with the U.S. Securities and Exchange Commission pursuant to its rules and regulations.

Copies of these documents may be obtained electronically via www.sedar.com and www.sec.gov/edgar.shtml (for the Form 40-F) or through Obsidian Energy's website at www.obsidianenergy.com.  Hard copies of Obsidian Energy's audited Consolidated Financial Statements and related MD&A are also available upon request, free of charge, by contacting our Investor Relations group or by requesting them through our website.

Obsidian Energy shares are listed on the Toronto Stock Exchange under the symbol "OBE" and on the New York Stock Exchange under the symbol "OBE.BC".

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SOURCE Obsidian Energy Ltd.

Met or Exceeded all 2019 Guidance Metrics

Achieved Significant Reduction in Undiscounted Asset Retirement Obligations During 2019 

Strong Continued Operational and Development Results Year to Date

CALGARY, March 30, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce our year-end 2019 financial and operational results, development program updates, and an update on our US listing. All figures are in Canadian dollars unless otherwise stated. Obsidian Energy's audited consolidated financial statements and Management's Discussion and Analysis ("MD&A") as at and for the year-ended December 31, 2019 can be found on our website at www.obsidianenergy.com. The documents will also be filed on SEDAR and EDGAR in due course.

FINANCIAL AND OPERATING HIGHLIGHTS

MESSAGE TO SHAREHOLDERS

We are pleased to announce our full year 2019 operating and financial results which met or exceeded our 2019 guidance metrics. Our 2019 average production was 26,901 boe/d, within our guidance range of 26,750 to 27,250 boe/d. We came in below guidance on capital, operating and general and administrative expenses as a result of several efficiencies, specifically cost reduction and restructuring initiatives that took place throughout the year. 

Our capital execution was strong in 2019, as we continued to build on our success in the Willesden Green area of the Cardium, with the drilling of 19 net operated Cardium locations (96% working interest). These wells delivered strong initial rates and continue to produce as expected (IP60: 385 boe/d, 79% light oil per well). Our capital expenditures were $103 million, below our guidance of $108 million, as we were successful in reducing our costs per well to $3.7 million for the year – averaging $3.5 million for the second half of the year – with an average horizontal length of over 2,630 meters. These costs are inclusive of all construction, drilling, completions, equipping, and gathering system expenditures.

We made significant progress in the management of our decommissioning liabilities. In 2019 we participated in the AER's Area Based Closure ("ABC") program, which allowed the Company to efficiently deliver 189 net well abandonments and 1,139 km of pipeline abandonments. Through completed work, asset divestitures, and using information obtained from government estimates and internal analysis, our undiscounted asset retirement obligation ("ARO") liability at year-end 2019 was reduced by 27% to $621 million from $847 million.

The Company met or exceeded all key performance targets in 2019 as we continued to focus on development execution and completed numerous cost reduction initiatives.

This momentum has carried into the first quarter of 2020 in which we have successfully completed 10 new Willesden Green Cardium wells, including wells with the best initial rates recorded to-date in the program.

Moving forward into 2020 there are several significant improvements to the underlying business which will result in positive go-forward benefits to cash flow:

• Continued strong performance of our high netback Willesden Green focused development program;
• Approximately $7 million in annual-lease savings from the amended office lease agreement;
• Approximately $6 million in annual transportation run-rate savings as off-market midstream and transportation commitments expire during 2020; and
• A full year contribution from the 2019 cost-savings initiatives.

STRONG FOURTH QUARTER AND FULL YEAR RESULTS

• FFO in the fourth quarter of 2019 totaled $54 million, which is the highest quarterly total the Company has delivered in three years, driven by the Company's relentless focus on cost reduction, high-level execution of our drilling program, commodity prices and continued operations excellence throughout our operated asset base.
• Average production for the fourth quarter of 2019 was 26,639 boe/d, driven by the production from 14 gross operated wells drilled in the second half of the year in the Willesden Green area. Additionally, the Company's weighting to light oil production increased by six percent year-over-year due to the development focus on light oil in the Cardium.
• Capital expenditures totaled $34 million, excluding decommissioning expenditures, as the Company continued its focus on primary development in Willesden Green, drilling eight new wells in the quarter. All operated wells rig-released in 2019 were brought on production prior to the end of the year, except for a drilled well added to our program in December.
• Operating costs were $12.75/boe in the fourth quarter of 2019 compared to $11.82/boe in the fourth quarter of 2018 and $14.65/boe in the third quarter of 2019. On a full-year basis, operating costs improved to $13.42/boe in 2019 compared to $13.89/boe in 2018, as the Company maintained its focus on per barrel operating costs against a reduced 2019 total produced volume. 
• General and administrative costs were $1.68/boe in the fourth quarter of 2019 compared to $1.95/boe in the fourth quarter of 2018.  The decrease is related to restructuring as the Company right-sized the organization to reflect our focused development activities in the Cardium. These actions also contributed to a reduction on a full year basis with general and administrative costs of $2.03/boe in 2019 compared to $2.24/boe in 2018.
• FFO totaled $54 million for the fourth quarter of 2019 compared to $29 million in the third quarter of 2019, with the increase partially due to higher production volumes as the Company brought on production 13 gross operated wells from our second half 2019 Cardium development program. Additionally, higher netbacks as a result of the increase in realized prices and lower operating costs contributed to the fourth quarter result. Full year FFO was $160 million compared to $92 million in 2018.
• Net debt was $495 million at December 31, 2019, compared to $497 million from the prior year as the Company continued to live within FFO. The December 31, 2019 figure includes $399 million drawn on the syndicated credit facility and $62 million of outstanding senior notes. On December 31, 2019, Senior Debt to Adjusted EBITDA, as calculated under the Company's credit agreement, was 2.57:1 compared to a 4.25:1 covenant limit.  Although FFO exceeded capital expenditures in 2019, net debt remained consistent to last year due to office lease costs, restructuring related expenses and the financial statement impact of the new lease accounting requirements under IFRS 16.

2020 DEVELOPMENT AND ENVIRONMENTAL PROGRAM UPDATE

At the end of the first quarter of 2020, we are experiencing significant volatility in global oil markets due to OPEC and Russia abandoning quotas and increasing production levels, significant demand destruction as a result of the global spread of the COVID-19 virus and, potential lack of storage forcing production shut-ins. At the time oil prices fell sharply, Obsidian Energy had executed the vast majority of our first quarter drilling program, which is now completed. We have flexibility in our portfolio to manage remaining capital expenditures through the balance of 2020 with a view to preserving liquidity and long-term shareholder value. If the current oil price environment continues, we anticipate no development capital spending for the balance of 2020.

Early in the first quarter, given initially strong oil prices, we advanced our capital plans which increased our forecasted first half spend to $54 million, including a production-efficient optimization program of $4 million and decommissioning expenditures of $8 million. This plan included the rig-release of nine wells in the Willesden Green area, completion of ten wells (including our additional December 2019 drill), and acceleration of 2020 decommissioning activity to address well sites that require frozen conditions for efficient abandonment. 

Our operations in the first quarter have proceeded on schedule and within our cost estimates, despite the severe cold encountered during the month of January. Drilling and completions activities have finished successfully, with production from all new wells anticipated to be fully online in April, subject to any commodity price related curtailment we implement.  Early deliverability results from the first five wells to date have been particularly strong, with initial results significantly exceeding our prior results for the area.  The two wells currently on-stream delivered IP10 rates of 1,134 boe (85% light oil) and 1,101 boe (77% light oil), respectively, representing the two strongest oil-equivalent rates since the inception of our primary Cardium program.  These two wells demonstrated very similar completions flowback rates to three other new wells in the vicinity that will be brought on stream in April.

Obsidian Energy is actively reviewing our portfolio considering the current commodity price outlook and has shut-in volumes deemed temporarily uneconomic to produce and has lowered our first half 2020 production estimate by 600 boe/d. This reduction is composed almost entirely of heavy oil and associated gas production in the Peace River area.  Including these actions, the Company expects average production for the first half of 2020 to be within guidance of 26,500 – 27,100 boe/d. The Company will continue to optimize the production base against the anticipated volatile commodity price environment and is prepared to shut-in additional volumes should we deem it economically prudent.  In addition, the Company has identified in excess of $10 million in operating and general and administrative reductions over our original 2020 plan and will continue to seek opportunities to lower costs in all aspects of our business.

We are continuing our participation in the ABC program for 2020. Our focus in the first quarter of 2020 has been in the Sousa and Lennard Creek fields in Northwest Alberta, where working in frozen conditions allowed our work to be conducted most efficiently.  We have abandoned 149 wells and 138 km of pipelines year to date.

First Half 2020 Production and Cost Guidance

2020 HEDGING PROGRAM

In 2020, the Company has the following hedges in place:

NYSE LISTING AND OTC LISTING

The significant change in the macro economic environment has contributed to a reduction in the Company's share price. As a result, we no longer meet the listing requirements of the NYSE and will be delisted April 1, 2020. To facilitate trading for our US based shareholders, we will begin trading on the OTCQB effective April 2, 2020. If our share price improves to average over US$0.25 per share for 30 consecutive days, we will move to the OTCQX market. The move in listing from the NYSE to the OTCQB is expected to result in on-going cost savings of approximately $1 million per year at this time.

UPDATED CORPORATE PRESENTATION

For further information on these and other matters, Obsidian Energy has posted an updated Corporate Presentation which can be found on its website, www.obsidianenergy.com. 

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.

NON-GAAP MEASURES

Certain financial measures including FFO, FFO per share-basic, FFO per share-diluted, netback, net debt and Adjusted EBITDA, included in this press release do not have a standardized meaning prescribed by IFRS and therefore are considered non-GAAP measures; accordingly, they may not be comparable to similar measures provided by other issuers. FFO is cash flow from operating activities before changes in non-cash working capital, decommissioning expenditures, office lease settlements, the effects of financing related transactions from foreign exchange contracts and debt repayments and certain other expenses and is representative of cash related to continuing operations. FFO is used to assess the Company's ability to fund its planned capital programs. See "Calculation of Funds Flow from Operations" below for a reconciliation of FFO to cash flow from operating activities, being its nearest measure prescribed by IFRS. Netback is the per unit of production amount of revenue less royalties, operating expenses, transportation expenses and realized risk management gains and losses, and is used in capital allocation decisions and to economically rank projects. Net debt is the total of long-term debt and working capital deficiency and is used by the Company to assess its liquidity. Adjusted EBITDA is cash flow from operations excluding the impact of changes in non-cash working capital, decommissioning expenditures, financing expenses, realized gains and losses on foreign exchange hedges on prepayments, realized foreign exchange gains and losses on debt prepayment, restructuring expenses and other expenses. Adjusted EBITDA as defined by Obsidian Energy's debt agreements excludes the EBITDA contribution from assets sold in the prior 12 months and is used within Obsidian Energy's covenant calculations related to its syndicated bank facility and senior notes. Additionally, under the syndicated credit facility, realized foreign exchange gains or losses related to debt maturities are excluded from the calculation.

CALCULATION OF FUNDS FLOW FROM OPERATIONS

ABBREVIATIONS

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. Please note that initial production and or peak rates are not necessarily indicative of long-term performance or ultimate recovery.  In particular, this document contains forward-looking statements pertaining to, without limitation, the following: that the audited consolidated financial statements and MD&A will be filed in due course on SEDAR and EDGAR; that there are several significant improvements to the underlying business which will result in positive go-forward benefit to cash flow and what those improvements are; that we have flexibility in our portfolio to manage remaining capital expenditures through the balance of 2020 with a view to preserving liquidity and long-term shareholder value; that if the current oil price environment continues, that we anticipate no development capital spending for the balance of 2020; our forecasted H1 spending and the breakdown of that spending, where and when rigs get released, and when completions and decommissioning activities are completed; when certain production will be online and possible caveats to those dates; that the Company will continue to optimize the production base against an anticipated volatile commodity price environment during 2020 and is prepared to shut-in additional volumes should it deem it to be economically prudent; that we will continue to seek opportunities to lower costs in all aspects of our business; that we will continue our participation in the ABC program in 2020; the details of our first half 2020 capital budget and our average production guidance (with breakdown of constituent parts); when we will begin trading on the OTCQB, and that we will move to the OTCQX when we meet the listing criteria; and the expected cost saving from moving from the NYSE to the OTCQB.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things that: we will have the ability to continue as a going concern going forward and realize our assets and discharge our liabilities in the normal course of business; we do not dispose of any material producing properties; the impact of the Albert Government curtailment; the impact of any government assistance programs will have on the Company in connection with, among other things, the COVID-19 pandemic; the impact on energy demands going forward and the inability of certain entities, including OPEC, to agree on crude oil production output constraints; the impact on commodity prices, production and cash flow due to the potential lack of storage forcing production shut-ins; how the Supreme Court of Canada Redwater decision will impact our Company moving forward; the impact of regional and/or global health related events on energy demand; global energy policies going forward; our ability to execute our long-term plan as described herein and in our other disclosure documents and the impact that the successful execution of such plan will have on our Company and our shareholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we are not able to continue as a going concern and realize our assets and discharge our liabilities in the normal course of business;  the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favorable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, March 29, 2020 /PRNewswire/ -OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce completion of agreements with our lenders and building landlord. All figures are in Canadian dollars unless otherwise stated.

Further to our recent announcements, the Company has executed final agreements resulting in the renewal of our syndicated credit facility, amendments to our senior notes and renewed terms on our Calgary office lease. All terms are consistent as previously announced except for further financial covenant relief, which will provide the Company additional flexibility in the current oil price environment. A summary of the terms is provided below:

• Syndicated Credit Facility:
• the borrowing base and amount available under the credit facility are set at $550 million and $450 million, respectively;
• the revolving period under the agreement has been extended to May 31, 2021 with the end date of the term period extended to November 30, 2021;
• a revolving period reconfirmation date will occur on June 22, 2020, whereby the lenders may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term period also concurrently accelerated to April 1, 2021;
• the next scheduled borrowing base redetermination will occur on November 30, 2020; and
• elimination of the debt to Adjusted EBITDA covenants.

• Senior Notes:
• all the outstanding senior notes will mature on November 30, 2021;
• if the end date of the revolving period on the syndicated credit facility is accelerated to April 1, 2021, as described above, then the senior notes maturities will also be accelerated to that date; and
• elimination of the debt to Adjusted EBITDA covenants.

• Calgary Office Lease:
• lease payments will total $0.833 million per month, net of sub-leases, from February 2020 to January 2025 ($10 million on an annualized basis), which is the end of the lease; and
• the building landlord has agreed to indemnify the Company on all existing subleases.

NON-GAAP MEASURES

The financial measure Adjusted EBITDA included in this press release does not have a standardized meaning prescribed by IFRS and therefore is considered a non-GAAP measure; accordingly, it may not be comparable to similar measures provided by other issuers. Adjusted EBITDA is cash flow from operations excluding the impact of changes in non-cash working capital, decommissioning expenditures, financing expenses, realized gains and losses on foreign exchange hedges on prepayments, realized foreign exchange gains and losses on debt prepayment, restructuring expenses and other expenses. Adjusted EBITDA as defined by Obsidian Energy's debt agreements excludes the EBITDA contribution from assets sold in the prior 12 months and is used within Obsidian Energy's covenant calculations related to its syndicated bank facility and senior notes. Additionally, under the syndicated credit facility, realized foreign exchange gains or losses related to debt maturities are excluded from the calculation.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: our updated syndicated credit facility and the possible reconfirmation, redetermination and term-out dates under the various scenarios and elimination of certain financial covenants; our updated senior note maturity dates under various scenarios and elimination of certain financial covenants; and our expected lease payments and indemnity from the landlord going forward.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things that we do not dispose of any material producing properties; the impact of the Albert Government curtailment; the impact of any government assistance programs will have on the Company in connection with, among other things, the COVID-19 pandemic; the impact on energy demands going forward and the inability of certain entities, including OPEC, to agree on crude oil production output constraints; how the Supreme Court of Canada Redwater decision will impact our Company moving forward; the impact of regional and/or global health related events on energy demand; global energy policies going forward; our ability to execute our long-term plan as described herein and in our other disclosure documents and the impact that the successful execution of such plan will have on our Company and our shareholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favorable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, Feb. 27, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") announces the extension of the Company's syndicated credit facility with the underlying borrowing base and amount available under the syndicated credit facility set at $550 million and $450 million, respectively, subject to specific items being amended as discussed below. The amount available under the syndicated credit facility has been reduced by $10 million to the aforementioned $450 million level. Additional terms in the amending agreement are as follows:

• the revolving period under the agreement has been extended to May 31, 2021 with the end date of the term period extended to November 31, 2021;
• a revolving period reconfirmation date will occur on June 22, 2020, whereby the lenders may accelerate the end date of the revolving period to June 30, 2020 with the end date of the term period also concurrently accelerated to April 1, 2021; and
• the next scheduled borrowing base redetermination will occur on November 30, 2020.

The May 31, 2021 revolving period and corresponding November 30, 2021 term periods described above may be accelerated if by March 4, 2020, the following terms are not met:

• the maturity dates of the Company's outstanding senior notes due on March 16, 2020, May 29, 2020 and December 2, 2020, totaling US$27 million, have been extended to at least November 30, 2021;
• the net rent amount payable under the Company's office lease will not exceed an aggregate amount of $10 million per annum for the years 2020 through 2024 and $833,333 for the month of January 2025, when the lease expires; and
• the building landlord has agreed to indemnify the Company on all existing subleases.

Failure to satisfy the above terms on or before March 4, 2020 will result in an acceleration of the end date of the revolving period to March 4, 2020 and the end date of the term period to April 1, 2021. 

The Company is in active negotiations with our noteholders and building landlord on these outstanding items in order to finalize the extension.  

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: the expected amount available under the syndicated credit facility, the revolving reconfirmation dates and term period; the specific terms which need to be amended including the senior notes and rent payable under the office lease; and expected impact to the credit facility if those terms are not obtained.  

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things that we do not dispose of any material producing properties; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; other than noted herein, our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Obsidian Energy shares are listed on both the Toronto Stock Exchange (symbol "OBE") and New York Stock Exchange (symbol "OBE.BC"). All figures are in Canadian dollars unless otherwise stated.

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SOURCE Obsidian Energy Ltd.

CALGARY, Feb. 6, 2020  /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to release its year-end 2019 independent reserves evaluation.

Stephen Loukas, Interim President and CEO commented, "We are pleased to announce our 2019 reserve results which demonstrates the strength of our dedicated Cardium development strategy, allowing for our reserve auditors to recognize the performance and improved cost efficiency of the program. In addition, the Company received initial recognition of the improvements of existing wells resulting from optimization techniques, thereby resulting in an increase in recoverable reserves."

2019 Year-End Reserves Summary

The Company is pleased to present the results of its year-end 2019 independent reserves evaluation, prepared by Sproule Associates Limited ("Sproule").

2019 marks the Company's third year in a row achieving greater than 100 percent reserve replacement on total proved reserves ("1P") and proved plus probable reserves ("2P"). This increase includes recognition of the performance of our Cardium drilling program contributing to the overall 1P and 2P replacement ratio of approximately 140 and 139 percent, respectively. The Company also continues to see benefits from its optimization and decline mitigation projects with an average projected three year proved developed producing ("PDP") decline of approximately 17 percent. We are excited about the future development opportunities, particularly in our Cardium assets, which will allow us to create long term value for our shareholders.

Reserve Highlights:

• Replaced 95 percent on a PDP basis, 140 percent on a 1P basis and 139 percent on a 2P basis of 2019 production, prior to asset divestitures.
  
  
• Reserve replacement was driven by strong underlying asset base performance in addition to the 2019 drilling program in the Cardium Crimson Lake area in Willesden Green. 1P replacement in the Cardium is approximately 177 percent and 2P replacement is approximately 187 percent.
  
  
• Obsidian Energy's reserve life index ("RLI") is approximately 8, 11 and 14 years on a PDP,1P and 2P basis, respectively.
  
  
• Obsidian Energy has increased our PDP liquids weighting by two percent, to 69 percent total liquids.
  
  
• Our total undeveloped reserve locations remain conservatively booked and highly achievable, with 180 total net locations booked, including 135 net locations in the Cardium.
  
  
• 2P costs for our operated development activity in 2019 were $16.94 per boe. 2P finding and development ("F&D") costs excluding changes in future development capital, were $7.42 per boe, F&D costs including changes in future development capital were $4.29 per boe.
  
  
• Despite $198 million of negative pricing impacts and an incremental $37 million in asset retirement obligations ("ARO") to reflect the Canadian Oil and Gas Evaluation Handbook ("COGEH") 2019 updates, before-tax net present value discounted at 10 percent ("NPV10") for 2P decreased by only six percent to $1.6 billion at year-end 2019, based on Sproule's commodity price forecast at December 31, 2019. Lower capital and operating costs helped to mitigate the pricing and ARO impacts.

2019 Year-End Reserves Tables

In 2019, we engaged Sproule, an independent, qualified engineering firm, to evaluate 100 percent of our PDP, 1P and 2P reserves. Sproule conducted an independent reserves evaluation of Obsidian Energy's reserves effective December 31, 2019. This evaluation was prepared in accordance with definitions, standards, and procedures set out in COGEH and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The Sproule reserves evaluation was based on Sproule's December 31, 2019 forecast prices and costs. Reserves included below are Company gross reserves which are the Company's total working interest reserves before the deduction of any royalties and excluding any royalty interests payable to the Company. The numbers in the tables below may not add due to rounding.

Summary of Reserves

Reserves Reconciliation – Proved

 Reserves Reconciliation – Proved Plus Probable

Summary of Before Tax Net Present Values

 Future Development Capital

Summary of Pricing and Inflation Rate Assumptions

Updated Corporate Presentation

For further information on these and other matters, Obsidian Energy has posted an updated Corporate Presentation which can be found on its website, www.obsidianenergy.com. 

All figures contained in this release are in Canadian dollars unless otherwise noted. 

The financial and operating information in this press release is based on estimates and is unaudited. Some of the terms below do not have standardized meanings. Further detail can be found in the "Oil and Gas Advisory" section contained in this release. Additional reserve information as required under NI 51-101 will be included in our Annual Information Form which will be filed on SEDAR, EDGAR, and posted to our website in March.

Oil and Gas Advisory

This press release contains a number of oil and gas metrics, including "F&D costs", and "RLI" which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods. F&D costs are the sum of exploration and development costs incurred in the period, plus the change in estimated future development capital for the reserves category, all divided by the change in reserves during the period. F&D costs exclude the impact of acquisitions and divestitures. RLI is calculated as total Company gross reserves divided by Sproule's forecasted 2019 production for the associated reserve category. Under NI 51-101, proved reserves estimates are defined as having a high degree of certainty to be recoverable with a targeted 90 percent probability in aggregate that actual reserves recovered over time will equal or exceed proved reserve estimates. For proved plus probable reserves under NI 51-101, the targeted probability is an equal (50 percent) likelihood that the actual reserves to be recovered will be greater or less than the proved plus probable reserve estimate. The reserve estimates set forth above are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

Abbreviations Contained in the Press Release

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: that we are excited about the future development opportunities, particularly in our Cardium assets, which will allow us to create long term value for our shareholders; that additional reserve information, as required under NI 51-101, will be included in our Annual Information Form which will be filed on SEDAR, EDGAR and our website in March; and our expected RLIs.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things that we do not dispose of any material producing properties; the impact of the Alberta government mandated production curtailment; our ability to execute our long-term plan and the impact that the successful execution of such plan will have on our Company and our shareholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favourable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Obsidian Energy shares are listed on both the Toronto Stock Exchange and New York Stock Exchange under the symbol "OBE" and "OBE.BC" respectively. All figures are in Canadian dollars unless otherwise stated.

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SOURCE Obsidian Energy Ltd.

CALGARY, Jan. 21, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce its year-end 2019 production numbers as well as the reconfirmation of its existing credit facility.

Full Year 2019 Production

Full year 2019 production was 26,900 boe/d, within our recent full year guidance range of 26,750 to 27,250 boe/d. Additionally, production in the fourth quarter of 2019 was approximately 26,600 boe/d, with an average December rate of approximately 28,000 boe/d – allowing the Company to enter 2020 with operating momentum.

Reconfirmation of Existing Credit Facility

As previously disclosed, the Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination typically in May and November of each year. During the third quarter of 2019, the Company reached an agreement (the "Agreement") with its lenders whereby the underlying borrowing base of the syndicated credit facility and the amount available to be drawn under the syndicated credit facility remain at $550 million and $460 million, respectively. Under the Agreement, the Company had, among other things, a reconfirmation date scheduled for January 20, 2020, whereby the commencement of the term-out period may have been accelerated on January 30, 2020. The syndicate lenders have advised they are not terming out the facility and the borrowing base remains unchanged. Also, under the Agreement, a borrowing base redetermination is scheduled for February 28, 2020 when the revolving period is scheduled to end unless extended with the consent of the lenders. If the facility is not extended on or prior to February 28, 2020, the Company would not be allowed to further draw on the syndicated credit facility and the amount outstanding would be due on November 30, 2020.

As at December 31, 2019, the Company had $399 million drawn on the syndicated credit facility compared to $404 million at September 30, 2019.

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.

Abbreviations

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: the next expected redetermination date and the impact to the Company if the lenders do not consent to the extension.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, our ability to execute our long-term plan as described herein and in our other disclosure documents and the impact that the successful execution of such plan will have on our Company and our shareholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; other than noted herein, our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favourable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, Jan. 16, 2020 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to provide an update on our Cardium development program which continues to demonstrate encouraging results as we initiate our 2020 drilling campaign. Additionally, the Company provides the details of recently added hedges to our 2020 program.   

Cardium Development Program Update

All 13 wells from the second half of 2019 were successfully brought online prior to the end of December. Results from the program continue to meet the strong production expectations for the area, with IP10 rates for the program averaging 520 boe/d (90% oil) per well (all 13 wells are included in the average), and IP30 rates for wells averaging 485 boe/d (83% oil) per well (11 of the 13 wells are included in the average). We are very encouraged with our capital cost performance, with the wells averaging C$3.5 million per well, down from C$4 million estimated for a comparable well design at our 2018 Investor Day.

Activity is well underway to deliver the nine well program planned for the first half of 2020. Two drilling rigs are active for the Company. Three wells have been rig-released, with the drilling of the fourth and fifth wells underway.

We continue to prepare for our second half 2020 program in the Willesden Green region, which is expected to begin after breakup conditions end.

Hedging Update

The volatility of oil prices over the past several weeks has allowed Obsidian Energy to strengthen its 2020 hedging program, providing additional certainty to our cash flow at levels that are constructive to our business.

Currently, the Company has the following 2020 oil and natural gas hedges in place:

Updated Corporate Presentation

For further information on these and other matters, Obsidian Energy has posted an updated Corporate Presentation which can be found on its website, www.obsidianenergy.com. 

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.

Abbreviations

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.  Please note that initial production and or peak rates are not necessarily indicative of long-term performance or ultimate recovery.  In particular, this document contains forward-looking statements pertaining to, without limitation, the following: the expected timing for the drilling on the nine well program; the details of our 2020 development program; that we continue to prepare for our second half 2020 program which is expected to begin after breakup conditions end.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, our ability to execute our long-term plan as described herein and in our other disclosure documents and the impact that the successful execution of such plan will have on our Company and our shareholders; the Alberta mandated production curtailment that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favourable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, Dec. 2, 2019 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce the appointment of Stephen E. Loukas as Interim President and CEO, effective December 5, 2019. Mr. Loukas will succeed current Interim President and CEO, Michael J. Faust, who will return to his prior position of Independent Director and take on new responsibilities as Chair of the Commercial Committee.

Gordon Ritchie, Chairman of the Board of Directors ("Board"), commented, "I would like to thank Mike for his willingness to step in as Interim President and CEO during such a critical phase in Obsidian Energy's history. His strong leadership and experience was evident as he guided the organization through our new strategy of Cardium only primary development. During the three, very strong, quarters under his stewardship, the Company transformed itself into a much lower cost, highly focused Cardium developer and is well positioned as we enter 2020. As we move into the later stages of our previously announced strategic alternatives process, the Board will continue to leverage our various strengths. Having Stephen step into the Interim President and CEO role at this time will enable the Company to take advantage of his vast experience in corporate transactions and capital markets to guide us through the next period of this process. The reactivated Commercial Committee will ensure that the transition is seamless and that the Company maintains the advantage of Mike's expertise."

Mr. Faust states, "Having achieved the upfront goals of: (i) transforming Obsidian Energy to a Cardium focused development program; (ii) the announcement and implementation of a significant cost savings plan to improve the Company's competiveness, the impact of which will become more visibly evident during 2020; and (iii) the development and approval of the Company's 2020 capital development and operating plan which will continue Obsidian Energy's focus on Cardium primary development; I feel now is an appropriate time to transition out of the Interim President and CEO role. I have worked very closely with Stephen for approaching two years, and I am very confident that he has the right skill set to lead Obsidian Energy through the remainder of the strategic alternative process." 

Additional Executive Announcements

Obsidian Energy is pleased to announce the hiring of Mr. Peter Scott as Senior Vice President and Chief Financial Officer, effective December 2, 2019, replacing David Hendry. Mr. Scott has over 30 years of business and financial experience including more than 20 years as Chief Financial Officer of public and private companies. Mr. Scott has been responsible for a wide variety of functional areas including finance, accounting, tax, budgeting and planning, investor relations, insurance, legal, marketing and general administration. Mr. Scott has been intimately involved in a wide variety of business transactions including debt and equity financings, corporate and property acquisitions and dispositions and initial public offerings. Peter's most recent public company role was Senior Vice President and Chief Financial Officer of Lightstream Resources Ltd.

Additionally, Obsidian Energy would like to announce the hiring of Mr. Gary Sykes in the position of Vice President, Commercial, replacing Andrew Sweerts, Mr. Sykes has worked in a variety of technical, operational and managerial positions in locations including the UK, Canada, Indonesia, the USA and the Middle East. From 2012 to 2016 Mr. Sykes was President, Qatar and Iraq for ConocoPhillips managing the company's portfolio of regional assets, and since 2017 has been engaged in supporting a small Private Equity backed oil and gas venture. Mr. Sykes earned an Honors Degree in Mechanical Engineering from Glasgow University in 1990 and a Masters Degree in Petroleum Engineering from Heriot Watt University in Edinburgh in 1991. 

Mr. Mark Hawkins has been promoted to Vice President Legal, General Counsel and Corporate Secretary. Mr. Hawkins has served as the corporate secretary since 2015 and was formerly the General Counsel and Corporate Secretary. Prior to joining the Company in March 2015, he was a senior associate with Fasken Martineau DuMoulin LLP in Vancouver from October 2010 to February 2015. Prior thereto, Mr. Hawkins was an associate with McCarthy Tetrault LLP in Calgary from June 2005 to October 2010. Mr. Hawkins has experience in corporate governance, securities and mergers and acquisitions law and has represented clients in a number of significant acquisitions and public offerings.

Reconfirmation of Existing Credit Facility

As previously disclosed, the Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination typically in May and November of each year. During the third quarter of 2019, the Company reached an agreement with its lenders whereby the underlying borrowing base of the syndicated credit facility and the amount available to be drawn under the syndicated credit facility remain at $550 million and $460 million, respectively. Under the agreement, an additional borrowing base redetermination is scheduled on February 28, 2020 when the revolving period ends, with the expiration of the term-out date of November 30, 2020.

Additionally, there are two reconfirmation dates on November 19, 2019 and January 20, 2020 whereby the commencement of the term-out period may be accelerated on November 30, 2019 and January 30, 2020, respectively. If the facility is not extended on or prior to February 28, 2020 or reconfirmed at the before mentioned dates, the Company would not be allowed to further draw on the syndicated credit facility and the amount outstanding would be due on November 30, 2020.

The Company advises that its borrowing base remained unchanged on November 19, 2019.  As a result, the Company's borrowing base and syndicated credit facility remain at $550 million and $460 million, respectively.

Update on Phase 2 Cardium Development

Obsidian Energy has completed drilling the 13 wells planned for 2019, with approval for nine wells in the first half of 2020, completing the Phase 2 program in the Willesden Green area. The Phase 2 program commenced in July 2019 and will be completed in March 2020. This campaign follows a very successful 19 well Phase 1 program, that was conducted from July 2018 to March 2019. Of the 13 wells drilled to date, 11 have been completed, and 7 are on production. Results have been strong, with improved drilling and completion efficiencies resulting in lower costs per well. Average costs for wells to date have been reduced to approximately $3.5 million per well from $3.8 million during the Phase 1 program.

Early production results are also very promising as production for the first 30 days has averaged 438 boed (73% oil) from the 7-24 two (2) well pad; and 575 boe/d (76% oil) from the Northern most 14-24 two (2) well pad. The 12-6 three (3) well pad came on production in mid-November. Initial rates over the first eight (8) days are very strong, averaging 630 boe/d (>90% oil). In addition, early flow back results (2-3 days) from the 2-18 two (2) well pad, and 3-29 two (2) well pad are consistent with recent results in the area, averaging 720 boe/d (90% oil) from the four wells. All 13 wells are expected to be on production before year end.

Approval First Half 2020 Capital Plan

The Board has approved a $49.4 million first half 2020 capital plan to fund the continued drilling of the remaining 9 wells in the Phase 2 program and other operational spending. All wells are expected to be completed prior to breakup.

Hedging Update

Recent volatility within oil and gas markets have allowed the Company to introduce some additional hedges for December 2019 and the first quarter 2020. Our hedge policy is designed to provide a level of certainty to our cash flow at levels that are constructive to our business.

Currently, the Company has the following oil and natural gas hedges in place:

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.

Abbreviations

Forward-Looking Statements
Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.  Please note that initial production and or peak rates are not necessarily indicative of long-term performance or ultimate recovery.  In particular, this document contains forward-looking statements pertaining to, without limitation, the following:  that the Board will continue to leverage our various strengths as we move into the later stages of our previously announced strategic alternatives process; that having Mr. Loukas step into the role of Interim President and CEO will enable the Company to take advantage of his vast experience in corporate transactions and capital markets to guide us through the next period of this process; that the reactivation of the Commercial Committee will ensure that the transition is seamless and that the Company maintains the advantage of Mike's operational expertise; the impacts of the costs savings to the Company competitiveness;  how the Company will continue its Cardium primary development and expected drilling and completion timing and on production dates for Phase II of the program; and  the capital program for the first half of 2020 and on production dates for those wells.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, our ability to execute our long-term plan as described herein and in our other disclosure documents and the impact that the successful execution of such plan will have on our Company and our shareholders; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels; future exchange rates and interest rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, infrastructure access and delays in obtaining regulatory approvals and third party consents; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain financing on acceptable terms, including our ability to renew or replace our syndicated bank facility and our ability to finance the repayment of our senior notes on maturity; and our ability to add production and reserves through our development and exploitation activities.

Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the possibility that we will not be able to continue to successfully execute our long-term plan in part or in full, and the possibility that some or all of the benefits that we anticipate will accrue to our Company and our securityholders as a result of the successful execution of such plans do not materialize; the possibility that we are unable to execute some or all of our ongoing asset disposition program on favourable terms or at all; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires and flooding); and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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SOURCE Obsidian Energy Ltd.

CALGARY, Nov. 4, 2019 /PRNewswire/ - OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce its financial and operational results for the three and nine months ended September 30, 2019. All figures are in Canadian dollars unless otherwise stated.

Michael Faust, Interim President and CEO, commented, "Throughout the third quarter of 2019, Obsidian Energy continued to deliver on our commitments. We continue to operate within our Funds Flow from Operations, production remains strong and within guidance and we continue to be very pleased by the results we are seeing from the Cardium development program. In addition, we continue to focus on cost reduction efficiencies in our business and the success of these programs are significant, such that we are able to lower our full year operating cost per barrel guidance range to $13.50 - $13.75 per boe."

Financial and Operating Highlights