Obsidian Energy Completes Partial Redemption of $30 Million of Our Outstanding Senior Unsecured Notes

Rhea-AI Summary

Obsidian Energy (NYSE:OBE) has successfully completed a $30 million partial redemption of its 11.95% Senior Unsecured Notes due July 27, 2027. The redemption, executed on August 29, 2025, was conducted on a pro rata basis following the notice issued on August 18, 2025.

Following this transaction, the company's outstanding Notes balance stands at $80.8 million. The maximum semi-annual free cash flow offer required under the trust indenture has been adjusted to $17.0 million. The redemption process is being handled through Computershare Trust Company of Canada.

Positive

• Reduction of $30 million in high-interest (11.95%) debt obligations
• Demonstrates strong cash position enabling debt reduction
• Lowers future interest expense burden

Negative

• $80.8 million in high-interest Notes still remain outstanding

Calgary, Alberta--(Newsfile Corp. - September 2, 2025) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") today announced that we completed the previously announced redemption of $30 million aggregate principal of our 11.95 percent Senior Unsecured Notes due July 27, 2027 (the "Notes") on August 29, 2025, on a pro rata basis, as set forth in the notice of partial redemption issued August 18, 2025.

Payment of the redemption price and surrender of the Notes for redemption are being made through Computershare Trust Company of Canada. The Company now has $80.8 million of Notes outstanding and the maximum amount of any semi-annual free cash flow offer required to be made under the trust indenture, which governs the Notes, will be $17.0 million.

About Obsidian Energy

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

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American exchange in the United States under the symbol "OBE".

All figures are in Canadian dollars unless otherwise stated.

CONTACT

OBSIDIAN ENERGY

Suite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com

Investor Relations:
Toll Free: 1-888-770-2633
Email: investor.relations@obsidianenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264305

FAQ

How much debt did Obsidian Energy (OBE) redeem in September 2025?

Obsidian Energy redeemed $30 million of its 11.95% Senior Unsecured Notes due July 2027.

What is the remaining balance of Obsidian Energy's (OBE) Senior Unsecured Notes after the redemption?

After the partial redemption, Obsidian Energy has $80.8 million of Notes still outstanding.

What is the interest rate on Obsidian Energy's (OBE) Senior Unsecured Notes?

The Senior Unsecured Notes carry an interest rate of 11.95% and are due July 27, 2027.

What is the new maximum semi-annual free cash flow offer for OBE's Notes?

Following the redemption, the maximum semi-annual free cash flow offer required under the trust indenture is $17.0 million.