Exhibit 99.1
Obsidian Energy Announces Syndicated Credit Facility Increase to $200 Million
CALGARY, March 22, 2023 – OBSIDIAN ENERGY LTD. (TSX / NYSE American – OBE) (“Obsidian Energy”, the “Company”, “we”, “us” or “our”) is pleased to announce an increase to our syndicated credit facility to $200.0 million from $175.0 million, with an extension of the revolving period to May 31, 2024, and the term-out date to May 31, 2025. The increase was part of our semi-annual borrowing base redetermination, which was completed earlier than normal (typically occurs in May and November of each year).
“The syndicated credit facility increase demonstrates the confidence in the Company and our strategic direction,” said Stephen Loukas, Obsidian Energy’s President and CEO. “Through a combination of production growth and debt paydown, we are in a substantially stronger financial position than a year ago, allowing us to continue to pursue our corporate objectives. With our winter drilling program wrapping up and given the current commodity price volatility in the industry, consistent with our focus of maximizing shareholder value we are reviewing our business plan for the balance of the year, including all aspects of our second half capital program as well as further enhancement of our debt capacity.”
ADDITIONAL READER ADVISORIES
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements or information (collectively “forward-looking statements”) within the meaning of the “safe harbour” provisions of applicable Canadian and U.S. securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information concerning: the timing and extension to our syndicated credit facility revolving period and term-out date; and our review of our business plan for the balance of the year given the current commodity price volatility in the industry.
The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy, including expectations and assumptions concerning: the impact of regional and/or global health related events, including the ongoing COVID-19 pandemic, on energy demand and commodity prices; that the Company’s operations and production will not be disrupted by circumstances attributable to the COVID-19 pandemic and the responses of governments and the public to the pandemic; global energy policies going forward, including the continued ability of members of OPEC, Russia and other nations to agree on and adhere to production quotas from time to time; our ability to qualify for (or continue to qualify for) new or existing government programs created as a result of the COVID-19 pandemic or otherwise, and obtain financial assistance therefrom, and the impact of those programs on our financial condition; Obsidian Energy’s views with respect to its financial condition and prospects, the stability of general economic and market conditions, currency exchange rates and interest rates; future capital expenditure and decommissioning expenditure levels; future operating costs and G&A costs; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; our ability to obtain financing on acceptable terms, including our ability (if necessary) to continue to extend the revolving period and term out period of our credit facility, our ability to maintain the existing borrowing base under our credit facility, our ability (if necessary) to replace our syndicated bank facility and our ability (if necessary) to finance the repayment of our senior unsecured notes.
