InPlay Oil acquisition of Cardium light oil focused assets in Pembina

On February 19, 2025, InPlay Oil Corp. ("InPlay") announced that it entered into a definitive agreement for the strategic acquisition with Obsidian Energy Ltd. (“Obsidian Energy”), and certain of its affiliates, for light oil focused assets in the Pembina area of Alberta.

Located in the Cardium Formation, Obsidian Energy’s Pembina light oil assets are highly accretive, low decline, long-life reserves with deep drilling inventory. Existing wells and infrastructure will allow growth in scale with reduced capital costs.

Closing of the acquisition was announced on April 7, 2025, for a net consideration of approximately C$301 million.

The highly accretive acquisition was funded by a combination of net proceeds released to InPlay pursuant to its previously announced C$32.8 million bought deal subscription receipt financing, an amended C$330 million credit facility with a C$190 million revolving credit facility, a letter of credit facility of up to C$30 million, a fully drawn C$110 million two-year amortizing term loan and the issuance of 54,838,709 InPlay common shares to Obsidian Energy at a deemed price of C$85 million or C$1.55 per share. The share consideration is subject to a six-month lock up period, which may be shortened in certain circumstances.

In accordance with the terms of the bought deal financing, each subscription receipt issued was automatically exchanged for one InPlay share concurrent with the completion of the transaction, and the net proceeds were released to InPlay from escrow and used to fund a portion of the cash consideration payable to Obsidian Energy under the acquisition.

Immediately following completion of the acquisition, InPlay holds 167,636,627 InPlay shares issued and outstanding, inclusive of the underlying 21,145,625 shares issued upon conversion of subscription receipts previously issued pursuant to the bought deal financing and the share issuance to Obsidian Energy.

Further information can be found on Canada Newswire's website.

InPlay Oil is a growth-oriented light oil development and production company based in Calgary, Alberta. Its activity is focused on large oil in place pools with low recovery factors, low declines, and long life reserves primarily targeting the Cardium Formation in Alberta.

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets producing over 39,000 boe per day. Primarily operating in the Peace River, Willesden Green/Pembina (Cardium) and Viking areas, its principal business consists of the exploration, development and production of petroleum resources.