Obsidian Energy Announces $75 million Add-On to our Existing Senior Unsecured Notes

OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (" Obsidian Energy ", the " Company ", " we ", " us " or " our ") announces that we have entered into an underwriting agreement to sell, on a private placement basis (the " Offering "), an additional $75.0 million aggregate principal amount to our existing 8.125% senior unsecured notes due December 3, 2030, issued on December 3, 2025 (the " Notes ").

Upon closing of the Offering, the aggregate principal amount of the Notes outstanding will increase from $175.0 million to $250.0 million. The additional Notes will be issued at a price of 102.75 resulting in an effective yield of 7.186% and gross proceeds of $77.1 million.

Closing of the Offering is expected to occur on or about July 22, 2026, subject to the satisfaction of customary closing conditions.

Subject to completion of the Offering, the net proceeds will be used to pay down indebtedness under our syndicated credit facility, fund general corporate expenses and to pay related transaction expenses.

"This incremental issuance reflects the strong demand we received from investors and the attractive conditions in the credit markets", commented Stephen Loukas, Obsidian Energy's President and CEO. "This transaction further diversifies our capital structure, and enhances our financial flexibility, while preserving our strong balance sheet. Together, these benefits position Obsidian Energy to advance our strategic initiatives, including driving production growth across our light and heavy oil assets and further expanding our waterflood initiatives in Peace River".

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