Obsidian Energy Announces Update to its Syndicated Credit Facility and Peace River Oil Partnership Disposition

OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces the extension of the Company's syndicated credit facility with the underlying borrowing base and amount available under the syndicated credit facility remaining at $550 million and $460 million, respectively. The revolving period ends on February 28, 2020 with revolving period reconfirmation dates on November 19, 2019 and January 20, 2020. Under the agreement, the term-out period is extended to November 30, 2020.

As part of the Peace River Oil Partnership disposition, our partner has waived its right to exercise both the right of first refusal and the tag along provisions. Furthermore, the transaction has received the advanced ruling certificate from the Competition Bureau of Canada. The disposition continues to proceed through the usual steps, including terms of the agreement and customary closing conditions. Obsidian Energy expects to close the transaction by the end of August and will provide updates as they arise. Upon the close of the transaction, the amount available under the syndicated credit facility will be reduced to $420 million.