Obsidian Energy sells its shares in InPlay Oil

Mr. Peter Scott of Obsidian Energy reports OBSIDIAN ENERGY ANNOUNCES CLOSING OF SALE OF COMMON SHARE POSITION IN INPLAY OIL CORP. The previously announced disposition of Obsidian Energy Ltd.'s common share position in InPlay Oil Corp., consisting of 9,139,784 InPlay common shares and representing approximately 32.70 per cent of the issued and outstanding InPlay shares, to Delek Group Ltd., for $10 per InPlay share, for an aggregate purchase price of $91,397,840, subject to certain adjustments described below, has been completed. The purpose of the disposition transaction was to monetize the equity consideration received by the company in connection with the disposition of the company's Pembina assets in April, 2025, and the company expects to initially use the proceeds of the disposition transaction to repay existing indebtedness. Early warning disclosure Pursuant to the definitive agreement with the purchaser, the aggregate purchase price for the company's InPlay shares was reduced by $29,563.49, being the amount equal to one-third of certain filing fees incurred by the purchaser in connection with clearance of the disposition transaction under the Competition Act (Canada). Following closing of the disposition transaction, Obsidian Energy does not own any InPlay shares and owns 20,834 restricted awards (RAs) granted under InPlay's incentive award plan (representing 0.07 per cent of the issued and outstanding InPlay shares, assuming settlement of such InPlay RAs for InPlay shares). Pursuant to the terms of InPlay's incentive award plan, the company's InPlay RAs are expected to be forfeited on the date that is 30 days following the closing of the disposition transaction. As of the date of this report, Obsidian Energy does not have any plans or future intentions that relate to, or would result in, any of the matters described in clauses (a) through (k) of Item 5 of Form 62-103F1. The disposition transaction was completed in reliance on the private agreement exemption contained in Section 4.2 of National Instrument 62-104, Take-Over Bids and Issuer Bids, on the basis that: (i) the purchase of the InPlay shares was not made from more than five persons in the aggregate; (ii) the offer to purchase was not made generally to all holders of InPlay shares; and (iii) the value of the consideration paid for the InPlay shares by the purchaser pursuant to the definitive agreement with the purchaser, including any brokerage fees and commissions, was not greater than 115 per cent of the market price of the InPlay shares as determined in accordance with NI 62-104. An early warning report in respect of the disposition transaction will be electronically filed with the applicable securities commission in each jurisdiction where InPlay is a reporting issuer and will be available on InPlay's SEDAR+ profile. For further information or to obtain a copy of the early warning report, please contact Obisidan Energy's senior vice-president and chief financial officer, Peter Scott, at 403-777-2500 or [email protected]. InPlay's head office is located at Suite 2000, 350 7th Ave. SW, Calgary, Alta., T2P 3N9. About Obsidian Energy Ltd. 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, and develop and hold interests in, oil and natural gas properties and related production infrastructure in the Western Canada sedimentary basin. Obsidian Energy is headquartered in Calgary, and listed on the Toronto Stock Exchange and NYSE American. We seek Safe Harbor.