Obsidian Energy Announces Closing of the Operated Pembina Asset Sale for ~ $320 Million

Core Viewpoint - Obsidian Energy has successfully completed the divestiture of its operated Pembina assets to InPlay Oil Corp for approximately $320 million, which will enhance the company's financial position and allow for debt reduction [2][3][4]. Group 1: Transaction Details - The total consideration for the Pembina assets includes $220 million in cash, $85 million in InPlay common shares, and a 34.6% working interest in the Willesden Green Cardium Unit 2, valued at approximately $15 million [3][5]. - The effective date of the transaction is December 1, 2024, and Obsidian Energy retains its non-operated holdings in the Pembina Cardium Unit 11 [2][3]. Group 2: Financial Impact - The cash proceeds from the transaction were utilized to pay down debt, leaving approximately $30 million drawn on a reduced $235 million syndicated credit facility [4]. - The completion of the transaction has led to an extension of the revolving period and maturity dates of the credit facility by one year, now set to May 31, 2026, and May 31, 2027, respectively [4]. Group 3: Strategic Positioning - The transaction allows Obsidian Energy to focus on growing its Peace River asset and positions the company to benefit from potential future appreciation in the value of its InPlay share position [3][4]. - Following the transaction, Obsidian Energy owns approximately 33% of the issued and outstanding InPlay shares, totaling 54,838,709 shares [5][6].