Obsidian Energy Initiates Formal Strategic Alternatives Process

Source Press Release
Company Obsidian Energy Ltd. 
Tags Strategy - Corporate
Date September 10, 2019

OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces that the Board of Directors (the "Board") has determined that it is in the best interest of the Company and its stakeholders to initiate a formal process to explore strategic alternatives.

This process is intended to evaluate the Company's strategic options and alternatives to maximize shareholder value. Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combination, a disposition of all or a portion of the Company's assets, a recapitalization, refinancing of its capital structure, or any combination of the foregoing.

While the outcome of the strategic review process will depend on the opportunities which arise within such process (and there is no assurance of any particular outcome), Obsidian Energy believes that, given the Company's position as the largest producer and holder of Cardium acreage, the initiation of the strategic review process will allow for consideration of consolidation within the Cardium play in Alberta. Furthermore, such consolidation if possible, may allow for the creation of additional scale, efficiency and financial strength.

The Board will undertake a broad review of the potential alternatives to enhance stakeholder value and has hired Tudor, Pickering, Holt & Co. as its financial advisor in connection with this review and analysis of strategic alternatives. Given the nature of the strategic alternatives process, the Company does not intend to provide updates until such time as the Board approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is necessary or appropriate.

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