<SEC-DOCUMENT>0001193125-24-139236.txt : 20240515
<SEC-HEADER>0001193125-24-139236.hdr.sgml : 20240515
<ACCEPTANCE-DATETIME>20240515142658
ACCESSION NUMBER:		0001193125-24-139236
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20240515
FILED AS OF DATE:		20240515
DATE AS OF CHANGE:		20240515

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OBSIDIAN ENERGY LTD.
		CENTRAL INDEX KEY:			0001334388
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		ORGANIZATION NAME:           	01 Energy & Transportation
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32895
		FILM NUMBER:		24949392

	BUSINESS ADDRESS:	
		STREET 1:		207 - 9TH AVENUE S.W.
		STREET 2:		SUITE 200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 1K3
		BUSINESS PHONE:		(403) 777-2500

	MAIL ADDRESS:	
		STREET 1:		207 - 9TH AVENUE S.W.
		STREET 2:		SUITE 200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 1K3

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PENN WEST PETROLEUM LTD.
		DATE OF NAME CHANGE:	20110125

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PENN WEST ENERGY TRUST
		DATE OF NAME CHANGE:	20050727
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>d760141d6k.htm
<DESCRIPTION>6-K
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<HTML><HEAD>
<TITLE>6-K</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>Form <FONT
STYLE="white-space:nowrap">6-K</FONT> </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>REPORT OF
FOREIGN PRIVATE ISSUER </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>PURSUANT TO RULE <FONT STYLE="white-space:nowrap">13a-16</FONT> OR
<FONT STYLE="white-space:nowrap">15d-16</FONT> </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>OF THE SECURITIES EXCHANGE ACT OF 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>For the month of May 2024 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Commission File Number <FONT STYLE="white-space:nowrap">1-32895</FONT> </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>Obsidian Energy Ltd. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Translation of registrant&#146;s name into English) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Suite 200,
207 &#150; 9<SUP STYLE="font-size:75%; vertical-align:top">th</SUP> Avenue SW </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Calgary, Alberta T2P 1K3 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Canada </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of
principal executive offices) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant files or will file annual reports under cover of Form <FONT STYLE="white-space:nowrap">20-F</FONT> or Form <FONT
STYLE="white-space:nowrap">40-F.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Form <FONT STYLE="white-space:nowrap">20-F&#8194;&#9744;&#8195;&#8195;&#8195;Form</FONT> <FONT
STYLE="white-space:nowrap">40-F&#8194;&#9745;</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark if the registrant is submitting the Form
<FONT STYLE="white-space:nowrap">6-K</FONT> in paper as permitted by Regulation <FONT STYLE="white-space:nowrap">S-T</FONT> Rule 101(b)(1)&#8194;&#9744; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark if the registrant is submitting the Form <FONT STYLE="white-space:nowrap">6-K</FONT> in paper as permitted by Regulation <FONT
STYLE="white-space:nowrap">S-T</FONT> Rule 101(b)(7)&#8194;&#9744; </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>DOCUMENTS INCLUDED AS PART OF THIS FORM <FONT STYLE="white-space:nowrap">6-K</FONT>
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">See the Exhibit Index hereto. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May&nbsp;15, 2024. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3"><B>OBSIDIAN ENERGY LTD.</B></TD></TR>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Stephen E. Loukas</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Stephen E. Loukas</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">President&nbsp;&amp; CEO</TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>Exhibit</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; "><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">News release, dated May&nbsp;15, 2024</TD></TR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d760141dex991.htm
<DESCRIPTION>EX-99.1
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<TITLE>EX-99.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:0pt" ALIGN="center">


<IMG SRC="g760141g0515190144283.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Obsidian Energy Discloses Details of Commercial Dispute </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>With Woodland Cree First Nation </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">CALGARY,
May<U></U>&nbsp;15, 2024 &#150; OBSIDIAN ENERGY LTD. (TSX / NYSE American &#150; OBE) (&#147;<B>Obsidian</B> <B>Energy</B>&#148;, the &#147;<B>Company</B>&#148;, &#147;<B>we</B>&#148;, &#147;<B>us</B>&#148; or &#147;<B>our</B>&#148;) today disclosed
details regarding a commercial dispute with the Woodland Cree First Nation (the &#147;<B>WCFN</B>&#148;). The Company provided this disclosure in response to misleading statements made by the WCFN&#146;s senior leadership, the establishment of WCFN
blockades at two of our sites, and the breach of a court order by the WCFN. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;The WCFN is attempting to coerce us into providing payments to them
that are similar to production royalties, even though we already pay royalties to the Alberta government for production on these Crown lands,&#148; said Stephen Loukas, Obsidian Energy&#146;s President and Chief Executive Officer. &#147;The WCFN
also wants to act as an exclusive agent for services used by the Company and charge excessive amounts for service contracts. These are not reasonable terms for a resolution to the blockade.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Obsidian Energy met all consultation obligations with the WCFN in both our current and past operations. Moreover, from the onset of our negotiations with the
WCFN, we have consistently explained that all of our current producing wells and future drilling locations are situated on Crown land at a significant distance from the WCFN reservation. Contrary to recent WCFN news releases, the WCFN does not have
an approval right over any aspect of Obsidian Energy&#146;s future development plans. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We have long-standing respectful relationships with many Indigenous
groups in Alberta and provide support through commercial service contracts and philanthropic donations. In that spirit, we offered the WCFN a generous package that includes the opportunity to garner a significant percentage of an estimated
$24<U></U>&nbsp;million in forecasted pad site construction work between 2024 &#150; 2026<SUP STYLE="font-size:75%; vertical-align:top">1</SUP>, subject to the receipt of competitive rates and other customary conditions. At the same time, we
continued to provide the opportunity for other Indigenous groups in Alberta to participate in the Company&#146;s construction work. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The offer also
includes community funding payments and compensation for appropriate resourcing by the WCFN to assess and consult in respect of our potential development. The offer has been open since February, but the WCFN has not accepted it. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In a further attempt to reach a resolution, Obsidian Energy executives travelled to Peace River on Monday, May<U></U>&nbsp;13, 2024, for meetings mediated by
the Royal Canadian Mounted Police (&#147;<B>RCMP</B>&#148;). The WCFN leaders left those meetings on two occasions within minutes without making any attempt to enter into any reasonable level of dialogue to find a path forward to resolving this
dispute. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>WCFN BLOCKADES AND LOST SERVICE CONTRACTS </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In April, Obsidian Energy provided companies affiliated with the WCFN the opportunity to compete for two commercial contracts, one for pad site construction
within our Walrus operating area and one for the supply of gravel for field maintenance and construction. Regrettably, the submissions by the WCFN companies were materially higher (in excess of 30<U></U>&nbsp;percent for the pad construction work)
than those of the successful bidders, both of whom are partnered with other Indigenous groups in Alberta. </P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Information regarding our growth plan, including but not limited to pad construction, beyond 2024 is based on
various factors and assumptions that are subject to change including regarding production levels, commodity prices, operating and other costs and capital expenditure levels. This information is provided for illustration purposes only and is based on
budgets and plans that have not been finalized and are subject to a variety of contingencies including prior years&#146; results. See &#147;<I>Forward-Looking Statements</I>&#148; for further details.
</P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On May&nbsp;5, 2024, approximately 48 hours after learning of its second contract loss, the WCFN established
a blockade near the Company&#146;s Walrus field in the Peace River area, interfering with the ability of Obsidian Energy employees and third-party contractors to access the site. The timing clearly indicates that the blockade was directly related to
the lost service contracts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">At the time the blockade was established, the Walrus field was producing approximately 1,275 net barrels of oil per day
(&#147;<B>bbl/d</B>&#148;) consisting of approximately 600 bbl/d of base production and 675 bbl/d of new production from the
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">15-19-082-16W5</FONT></FONT></FONT> pad, which was recently brought online and was early in the process of recovering fluid. The WCFN stated that it
would not allow operations to continue in the Walrus field and as a result, Obsidian Energy was forced to shut in the production on May<U></U>&nbsp;5, 2024. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On May&nbsp;11, 2024, the WCFN relocated its blockade approximately 11 kilometres west to the entrance of the Company&#146;s Harmon Valley South
(&#147;<B>HVS</B>&#148;) field, interfering with the ability of Obsidian Energy employees and third-party contractors to access the sites. Obsidian Energy took immediate action to ensure the safe evacuation of our employees and contractors while
notifying all appropriate regulatory authorities including the RCMP, the Alberta Energy Regulator (&#147;<B>AER</B>&#148;) and the County of Northern Sunrise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">At the time the blockade was established, the HVS field was producing approximately 4,500 net barrels of oil equivalent per day (&#147;<B>boe/d</B>&#148;).
The Walrus field production was promptly restarted, and attempts were made to negotiate with the WCFN, through the RCMP, to allow for safe access to the HVS field to continue operations. The HVS field contains critical infrastructure (as defined in
the Alberta Critical Infrastructure Defense Act) including oil and gas production sites, pipelines and related infrastructure. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Similar to the Walrus
blockade, the WCFN stated that they would not allow operations to continue in the HVS field. On Sunday, May&nbsp;12, 2024, after several unsuccessful attempts to contact and negotiate with the WCFN, Obsidian Energy was escorted into the field by the
RCMP to shut in production. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>WCFN&#146;S BREACH OF A COURT ORDER AND A RESOLUTION AGREEMENT </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The WCFN&#146;s blockades constitute a breach of a <U>court order</U> and breach of a resolution agreement (the &#147;<B>Resolution Agreement</B>&#148;) dated
February&nbsp;23, 2024, between the Company and the WCFN. The Resolution Agreement was a response to the establishment of certain monitoring camps by the WCFN in the vicinity of a number of Obsidian&nbsp;Energy<U></U>&nbsp;work
sites,<U></U>&nbsp;and<U></U>&nbsp;in return for the resumption of certain pad site construction work and&nbsp;additional maintenance work awarded to the WCFN. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As part of the Resolution Agreement, the WCFN agreed to not counsel, encourage or facilitate any of its members to physically prevent, impede, restrict or in
any way physically interfere with any person or vehicle travelling to or accessing the specified work areas, including but not limited to sites in the Walrus field and the HVS field. Obsidian Energy secured the Resolution Agreement with a consent
injunction order (the &#147;<B>Consent Injunction Order</B>&#148;)&nbsp;in the event of a breach by the WCFN.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In response to the WCFN&#146;s breach of the
Resolution Agreement, Obsidian Energy obtained the Consent Injunction Order from the Court of King&#146;s Bench of Alberta (the &#148;<B>Court</B>&#148;) on May&nbsp;6, 2024. The Court ordered the WCFN to remove its blockade. Despite the Consent
Injunction Order having been obtained legally and pursuant to the terms and conditions of the Resolution Agreement, WCFN Chief Isaac Laboucan-Avirom burned the Consent Injunction Order on May&nbsp;7, 2024, in the presence of the RCMP after being
served by a bailiff. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">It is clear from both our direct dialogue with the WCFN, as well as its public news releases that the WCFN believes it has
negotiating leverage over Obsidian Energy because of our publicly announced three-year Peace River growth plan. In reality, we have the ability to redeploy capital within our Peace River asset and within other parts of our portfolio to achieve our
future growth objectives. The Company and our leadership team has the support of our shareholders, who do not want Obsidian Energy burdened with uncompetitive contracts and additional payments demanded by the WCFN. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Stephen Loukas continued, &#147;We have a duty to our shareholders to make prudent use of our assets
(including financial) and to our suppliers to be fair when awarding contracts. We will continue to use our strict procurement process to award contracts, based on qualifications, Indigenous content, experience, and health, safety and environmental
practices that result in a selection that is the best value proposition for the Company and the local community. The WCFN-affiliated companies can certainly win future contracts with us, as they have in the past, if their bids are competitive. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">However, notwithstanding that our offer to the WCFN remains open, it is currently difficult to see a clear path to a negotiated resolution of our commercial
dispute with the WCFN. We reserve the right to pursue all legal means to restore the lawful operation of our HVS field, and may, without further notice, commence civil litigation against the WCFN and related parties for damages, including but not
limited to all foregone revenue on <FONT STYLE="white-space:nowrap">shut-in</FONT> production.&#148; </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ADDITIONAL READER ADVISORIES
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>OIL AND GAS INFORMATION ADVISORY </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Barrels of oil
equivalent&nbsp;(&#147;boe&#148;)&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>FORWARD-LOOKING STATEMENTS </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This news release contains forward-looking statements or information (collectively &#147;<B>forward-looking statements</B>&#148;) within the meaning of the
safe harbour provisions of applicable securities legislation.&nbsp;The use of any of the words &#147;expect&#148;, &#147;anticipate&#148;, &#147;continue&#148;, &#147;estimate&#148;, &#147;objective&#148;, &#147;ongoing&#148;, &#147;may&#148;,
&#147;will&#148;, &#147;project&#148;, &#147;should&#148;, &#147;believe&#148;, &#147;plans&#148;, &#147;intends&#148; and similar expressions are intended to identify forward-looking statements or information.&nbsp;In addition, statements relating
to &#147;reserves&#148; or &#147;resources&#148; 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: our ability to redeploy capital within our Peace River asset and
other parts of our portfolio to achieve our growth objectives; how we plan to conduct or procurement process; our expectations in connection with the negotiations with the WFCN commercial dispute; and our expectations regarding legal actions in the
future. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy. Although Obsidian
Energy believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Obsidian Energy
can give no assurance that they will prove to be correct. By its nature, such forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from
the anticipated results or expectations expressed. These risks and uncertainties include, among other things: whether the Company is in compliance with all regulatory requirements; the possibility that we change our 2024 capital plans in response to
internal and external factors, including those described herein; risks and uncertainties related to oil and gas interests and operations on Indigenous lands; the possibility that the Company will not be able to continue to successfully execute our
business plans (including the three-year growth plan) 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; unanticipated operating events or environmental events that can reduce production or cause production to be <FONT STYLE="white-space:nowrap">shut-in</FONT> or delayed (including
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
extreme cold during winter months, wild fires, flooding, drought and warm weather in the spring and summer months), including inability to access our properties due to blockades or other activism
and delays in obtaining regulatory approvals and third party consents. Readers are cautioned that the assumptions used in the preparation of such forward-looking statements and information, although considered reasonable at the time of preparation,
may prove to be imprecise and, as such, undue reliance should not be placed on such forward-looking statements and information. Obsidian Energy gives no assurance that any of the events anticipated will transpire or occur, or, if any of them do,
what benefits Obsidian Energy will derive from them. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake any
obligation to publicly update or revise any forward-looking statements or information contained herein. Readers should also carefully consider the matters discussed that could affect Obsidian Energy, or its operations or financial results in
Obsidian Energy&#146;s Annual Information Form (see &#147;Risk Factors&#148; and &#147;Forward-Looking Statements&#148; therein) for the year ended December&nbsp;31, 2023, which is available on the SEDAR+ website (www.sedarplus.ca), EDGAR website
(www.sec.gov) or Obsidian Energy&#146;s website. Readers are cautioned that the foregoing list of factors is not exhaustive. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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-looking
statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Obsidian Energy shares are
listed on both the Toronto Stock Exchange in Canada and the NYSE American in the United States under the symbol &#147;OBE&#148;. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">All figures are in
Canadian dollars unless otherwise stated. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>CONTACT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>OBSIDIAN ENERGY </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Suite
200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Phone:
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">403-777-2500</FONT></FONT> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Toll Free: <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">1-866-693-2707</FONT></FONT></FONT> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Website: <U>www.obsidianenergy.com;</U>
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B><I>Investor Relations:</I></B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman">Toll Free:
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">1-888-770-2633</FONT></FONT></FONT> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><FONT
STYLE="white-space:nowrap">E-mail:</FONT> <U>investor.relations@obsidianenergy.com</U> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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