Obsidian Energy Closes Belly River Acquisition and Increases 2026 Production Guidance

About this update from Obsidian Energy Ltd

Obsidian Energy Closes Belly River Acquisition and Increases 2026 Production GuidanceCalgary, Alberta--(Newsfile Corp. - July 2, 2026) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") has closed our previously announced acquisition of Belly River light oil assets in the Wilson Creek area of Willesden Green (the "Acquisition"). In conjunction with closing the Acquisition, we are updating our 2026 guidance to reflect the contribution of the acquired assets.Highlights:Closed the Acquisition on June 30, 2026, adding approximately 2,500 boe/d of high-quality Belly River light oil production (76% liquids, based on May production) and 35 net sections of land in the Wilson Creek area of Willesden GreenUpdated 2026 production guidance to 29,000-31,000 boe/d, representing a midpoint of 30,000 boe/d Currently targeting approximately 22% total production growth in 2027, including acquired volumes, and approximately 28% growth in light oil production versus 2026Planned six-well development program on the acquired lands in early 2027 is expected to increase production from the acquired assets to ~3,000 boe/d"The closing of this Acquisition marks a further step in our strategy to accretively grow and strengthen our business," commented Stephen Loukas, Obsidian Energy's President and CEO. "These high-quality contiguous Wilson Creek assets complement our position in the Belly River fairway and add an attractive inventory of future light oil development opportunities. With our existing Willesden Green natural gas infrastructure, which we intend to expand, we are well positioned to remove the constraints that previously limited development of these assets, allowing us to accelerate drilling activities. We have planned a six-well development program on the acquired lands for early 2027 that is expected to drive further incremental production growth and unlock additional value from these assets."Mr. Loukas continued, "With our expanded capital program and the contribution from the Acquisition, we now expect total production growth of approximately 22% in 2027, up from 15% previously, led by a 28% growth in light oil driving a significant reduction in operating cost per boe and lowering the Company's break-even costs. Supported by a strong balance sheet and our recently expanded credit facility providing enhanced fi...

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