Obsidian Energy sells its shares in InPlay Oil

Executive Summary

• Obsidian Energy Ltd. has completed the sale of its entire common share position in InPlay Oil Corp. to Delek Group Ltd.
• The transaction involved the sale of 9,139,784 InPlay common shares, representing approximately 32.70% of InPlay's issued and outstanding shares.
• The primary purpose of the sale is to monetize equity consideration received from the earlier disposition of Obsidian's Pembina assets, with proceeds earmarked for repaying existing indebtedness.

Key Details

• Transaction Counterparties: Seller is Obsidian Energy Ltd.; Buyer is Delek Group Ltd.
• Asset Sold: 9,139,784 common shares of InPlay Oil Corp.
• Ownership Percentage Sold: Approximately 32.70% of InPlay's issued and outstanding shares.
• Price Per Share: $10.00 CAD.
• Aggregate Purchase Price: $91,397,840 (subject to adjustments).
• Adjustments: The purchase price was reduced by $29,563.49, representing one-third of certain filing fees incurred by the purchaser for clearance under the Competition Act (Canada).
• Net Proceeds: Approximately $91,368,276.51 (calculated as aggregate price minus adjustment).
• Use of Proceeds: Obsidian expects to initially use the proceeds to repay existing indebtedness.
• Post-Transaction Holdings:
  • Obsidian no longer owns any InPlay common shares.
  • Obsidian retains 20,834 restricted awards (RAs) granted under InPlay's incentive award plan, representing 0.07% of InPlay shares (assuming settlement).
  • These RAs are expected to be forfeited 30 days following the closing of the disposition transaction.
• Regulatory Basis: The transaction was completed in reliance on the private agreement exemption under Section 4.2 of National Instrument 62-104.
• Related Context: The sale monetizes equity consideration received from the disposition of Obsidian's Pembina assets in April 2025.

Notable Quotes

• None provided in the text.