OBSIDIAN ENERGY LTD.

Senior Unsecured Notes

Obsidian Energy issued the Senior Unsecured Notes, which initially consisted of $127.6 million principal, pursuant to a trust indenture with Computershare Trust Company of Canada dated July 27, 2022. The Senior Unsecured Notes were issued at a price of $980.00 per $1,000.00 principal amount for aggregate gross proceeds of approximately $125.0 million. The Senior Unsecured Notes have an 11.95% coupon, payable semi-annually in equal installments. The Senior Unsecured Notes will be direct senior unsecured obligations of Obsidian Energy ranking equal with all other present and future senior unsecured indebtedness of the Company.

The Senior Unsecured Notes have a semi-annual repurchase offer feature whereby, subject to the terms and conditions of the new trust indenture governing the Senior Unsecured Notes, the Company must offer to purchase the maximum principal amount equal to 75% of excess free cash flow (as defined in the new trust indenture) up to and including July 27, 2024, and 50% of excess free cash flow thereafter at a price equal to 103% of the principal of the Senior Unsecured Notes, plus accrued and unpaid interest. The repurchase offer feature remains in place until an aggregate amount of $63.8 million of Senior Unsecured Notes are repurchased by the Company. Obsidian Energy has through either market purchases or a repurchase offer bought and cancelled $13.4 million of Senior Unsecured Notes at the date hereof, which reduce the aggregate amount available for repurchase. At its option, the Company may redeem all or part of the Senior Unsecured Notes at: 105.975% from July 27, 2024 to July 26, 2025; or 102.988% from July 27, 2025 to July 26, 2026; or 100% from July 27, 2026, to July 27, 2027.