Obsidian Energy have entered into an underwriting agreement to sell, on a private placement basis, an additional $75.0 million aggregate principal amount to their existing 8.125% senior unsecured notes due December 3, 2030, issued on December 3, 2025. 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. The additional Notes will be issued under a supplemental indenture to the existing trust indenture governing the Notes and will be direct senior unsecured obligations of Obsidian Energy, ranking equal with all other present and future senior unsecured indebtedness of the Company. Closing of the Offering is expected to occur on or about 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”.

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

This release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. No securities regulatory authority has either approved or disapproved of the contents of this news release.