Obsidian Energy Announces Closing of the Peace River Oil Partnership Acquisition

About this update from Obsidian Energy Ltd

[{"type":"text","content":"Obsidian Energy Announces Closing of the Peace River Oil Partnership AcquisitionCalgary, Alberta--(Newsfile Corp. - November 24, 2021) - OBSIDIAN ENERGY LTD. (TSX: OBE) (OTCQX: OBELF) (\"Obsidian Energy\", the \"Company\", \"we\", \"us\" or \"our\") is pleased to announce it has closed its previously announced acquisition of the remaining 45 percent interest in the Peace River Oil Partnership (\"PROP\") asset through a wholly-owned subsidiary (the \"Acquisition\"). \"We're extremely pleased to have successfully completed this acquisition,\" said Stephen Loukas, Obsidian Energy's Interim President and CEO. \"With full ownership and the current favorable commodity price outlook, we are executing a four well development drilling program that is expected to be on production by the end of January 2022.\"Total consideration paid was $43.5 million prior to closing adjustments with an effective date of July 1, 2021 ($36.0 million after closing adjustments). The cash consideration for the Acquisition was funded by a $16.3 million limited-recourse loan secured by the additional 45 percent interest in PROP, and proceeds from our marketed public offering of subscription receipts (the \"Subscription Receipts\"), which closed on November 18, 2021 (the \"Offering\"). The Offering was priced at $4.40 per Subscription Receipt for aggregate gross proceeds of approximately $25.9 million, which included the full exercise of the over-allotment option granted to a syndicate of agents. Concurrent with the completion of the Acquisition, the Subscription Receipts are being converted into Obsidian Energy common shares (\"Common Shares\") on November 24, 2021. The net proceeds from the Offering were released from escrow and used to facilitate the partial funding of the cash consideration payable under the Acquisition. Holders of Subscription Receipts are not required to take any action in order to receive the underlying Common Shares. Trading in the Subscription Receipts on the Toronto Stock Exchange is expected to be halted today and the Subscription Receipts delisted in due course.In connection with the closing of the Acquisition, the Company has reduced the aggregate amount available under our senior credit facility (\"Facility\") by $25 million resulting in $415 million total available under the Facility. At September 30, 2021, the Company had $340 mi...

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