Obsidian Energy completes oversubscribed C$25.9 million prospectus financing

Torys acted as counsel to Raymond James and Stifel Nicolaus Canada as the agents with a team that included Scott Cochlan, Michael Pedlow, Jon McDonald and Cassondra Lozynsky (corporate/Canadian securities), Chris Bornhorst and Ali Harkness (U.S. securities) and Steve Marshall (tax).

On November 18, 2021, Obsidian Energy Ltd. ("Obsidian Energy") announced it closed its previously announced marketed public offering of subscription receipts at a price of C$4.40 per receipt for aggregate gross proceeds of approximately C$25.9 million. The offering was conducted on a "best efforts" agency basis by Raymond James Ltd. and Stifel Nicolaus Canada Inc., who exercised in full the 15% over-allotment option granted to them in conjunction with closing of the offering.

Each subscription receipt represents the right to receive one common share of Obsidian Energy without payment of additional consideration or further action on the part of the holder and upon satisfaction of escrow release conditions (outlined below).

Obsidian Energy will use the net proceeds from the offering to finance part of the purchase price of its previously announced proposed acquisition of the remaining 45% non-operated working interest in its Peace River Oil Partnership from its partner. The gross proceeds from the offering will be held in escrow pending the completion of the acquisition. If: (i) the acquisition is not completed at or before 5:00 p.m. (Calgary time) on December 31, 2021; (ii) the acquisition agreement is terminated; or (iii) Obsidian Energy advises the agents or formally announces to the public by way of a news release or otherwise that it does not intend to proceed with the acquisition, then the purchase price for the subscription receipts will be returned pro rata to subscribers, together with a pro rata portion of interest earned on the escrowed funds.

Further information can be found on Globe Newswire’s website.

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets producing over 25,000 boe per day.