CALGARY, March 20, 2018 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the
"Company", "we", "us" or "our")
comments on FrontFour Capital Group LLC's ("FrontFour")
intention to nominate four candidates to stand for election at the
Company's 2018 Annual General Meeting.
Jay Thornton, Chairman of the
Obsidian Energy Board of Directors (the "Board"), commented,
"We are disappointed that after several months of attempting to
work constructively with FrontFour, including the addition of Gord
Ritchie to the Board at their suggestion, FrontFour has chosen to
put its interests ahead of other shareholders at a critical time in
the Company's history by starting a costly, time consuming, and
distracting proxy fight. Obsidian Energy has a refreshed Board with
significant shareholder representation that is committed to value
creation in both the short and long term. We recognize that status
quo is not an option and have been pursuing attractive commercial
opportunities to reward investors. FrontFour's unnecessary agenda
only adds undue risk to the execution of these outcomes."
Gordon Ritchie, one of the newest
members of the Board stated, "I am in a position to say the
strategic points raised by FrontFour have undergone extensive
scrutiny by management and the Board. As communicated to FrontFour
and all shareholders, we are aggressively looking at all options to
increase shareholder value. This is a challenging investment
environment for all Canadian E&P, but I am confident when I say
Obsidian Energy is on the right track and David French and his group are the right team to
execute."
Obsidian Energy will have more to say on FrontFour's agenda in
due course. In the meantime, the Board and management team remain
focused on executing our strategic plan to deliver strong results
on behalf of all shareholders.
Shareholders do not need to take any action at this time
regarding voting at the Annual General Meeting.
Obsidian Energy shares are listed on the Toronto Stock Exchange
under the symbol "OBE" and the New York Stock Exchange under the
symbol "OBE.BC".
OBSIDIAN ENERGY: Suite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3, Phone: 403-777-2500,
Fax: 403-777-2699, Toll Free: 1-866-693-2707, Website:
www.obsidianenergy.com; Investor Relations: Toll Free:
1-888-770-2633, E-mail: investor_relations@obsidianenergy.com
KINGSDALE ADVISORS: Ian
Robertson, Executive Vice President, Communication Strategy,
Direct: 416-867-2333, Cell: 647-621-2646, E-mail:
irobertson@kingsdaleadvisors.com
Forward-Looking Statements
Certain statements contained in this document constitute
forward-looking statements or information (collectively
"forward-looking statements"). Forward-looking statements are
typically identified by words such as "anticipate", "continue",
"estimate", "expect", "forecast", "budget", "may", "will",
"project", "could", "plan", "intend", "should", "believe",
"outlook", "objective", "aim", "potential", "target" and similar
words suggesting future events or future performance. In
particular, this document contains forward-looking statements
pertaining to, without limitation, the following: that we are
committed to value creation in both the short and long term; that
we are aggressively looking at all options to increase shareholder
value; that the Company is on the right track and David French and his group are the right team to
execute; that will have more to say on FrontFour's agenda in due
course; and that the Board and management team remain focused on
executing our strategic plan to deliver strong results on behalf of
all shareholders.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things
that we do not dispose of any material producing properties; our
ability to execute our long-term plan as described herein and in
our other disclosure documents and the impact that the successful
execution of such plan will have on our Company and our
shareholders; that the current commodity price and foreign exchange
environment will continue or improve; future capital expenditure
levels; 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; future
crude oil, natural gas liquids and natural gas production levels;
future exchange rates and interest rates; future debt levels; our
ability to execute our capital programs as planned without
significant adverse impacts from various factors beyond our
control, including weather, infrastructure access and delays in
obtaining regulatory approvals and third party consents; our
ability to obtain equipment in a timely manner to carry out
development activities and the costs thereof; our ability to market
our oil and natural gas successfully to current and new customers;
our ability to obtain financing on acceptable terms, including our
ability to renew or replace our syndicated bank facility and our
ability to finance the repayment of our senior notes on maturity;
and our ability to add production and reserves through our
development and exploitation activities.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking statements included in this document,
as there can be no assurance that the plans, intentions, or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties
that contribute to the possibility that the forward-looking
statements contained herein will not be correct, which may cause
our actual performance and financial results in future periods to
differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other
things: the possibility that we will not be able to continue to
successfully execute our long-term plan in part or in full, and the
possibility that some or all of the benefits that we anticipate
will accrue to our Company and our securityholders as a result of
the successful execution of such plans do not materialize; the
possibility that we are unable to execute some or all of our
ongoing asset disposition program on favourable terms or at all;
general economic and political conditions in Canada, the U.S. and globally, and in
particular, the effect that those conditions have on commodity
prices and our access to capital; industry conditions, including
fluctuations in the price of crude oil, natural gas liquids and
natural gas, price differentials for crude oil and natural gas
produced in Canada as compared to
other markets, and transportation restrictions, including pipeline
and railway capacity constraints; fluctuations in foreign exchange
or interest rates; unanticipated operating events or environmental
events that can reduce production or cause production to be shut-in
or delayed (including extreme cold during winter months, wild fires
and flooding); and the other factors described under "Risk Factors"
in our Annual Information Form and described in our public filings,
available in Canada at
www.sedar.com and in the United
States at www.sec.gov. Readers are cautioned that this list
of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this document speak
only as of the date of this document. Except as expressly required
by applicable securities laws, we do not undertake any obligation
to publicly update any forward-looking statements. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
SOURCE Obsidian Energy Ltd.