Obsidian Energy updates operational guidance

Calgary, Alberta--(Newsfile Corp. - September 14, 2026) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (" Obsidian Energy ", the " Company ", " we ", " us " or " our ") provides an update to our second-half capital program and 2026 guidance (all amounts are in Canadian dollars unless otherwise noted).

Highlights:

Second-half 2026 development program advancing with two rigs active in each of Peace River and Willesden Green

2026 production guidance revised to 28,500–29,500 boe/d, due to weather-related development delays and third-party facility downtime at the recently acquired Belly River assets which has been restored to ~2,400 boe/d

Acceleration of Peace River development with the addition of a waterflood injector to be drilled at the 6-20 pad in Walrus and the commencement of construction of an all-season road at North Walrus

On track to deliver 15%+ year-over-year production growth in 2027

"Our second-half development program is advancing, with two rigs active in each of Peace River and Willesden Green, complemented by continued progress on our Peace River waterflood initiatives as we build momentum toward the execution of our 2027 growth plans," commented Stephen Loukas, Obsidian Energy's President and CEO. "Following the integration of the recently acquired Belly River assets, production was impacted during July and into August by a third-party compressor issue that resulted in significant downtime. The Belly River assets are now back to their current expected production capability of ~2,400 boe/d. Combined with delays to portions of our development program resulting from wet weather during the summer, these factors have impacted our full-year production outlook by ~500 boe/d. As a result, we are updating our 2026 full-year production guidance to 28,500–29,500 boe/d, previously 29,000–31,000 boe/d. We currently estimate a December exit rate of ~31,000 boe/d with accelerating production growth over the course of Q1 2027 as we onstream wells drilled during Q4 2026."

Mr. Loukas continued, "We continue to target production growth of more than 15% in 2027, including executing our previously announced six-well Belly River development program on the acquired lands in early 2027 with optionality for additional growth at sustained higher oil prices. We anticipate releasing our 2027 guidance in mid-January."

HEAVY OIL ASSET HIGHLIGHTS

The Company's Peace River program has been active since July, with two drilling rigs progressing development at Dawson and Harmon Valley South (" HVS "). This activity has been complemented by the expansion of Clearwater waterflood infrastructure in the Dawson field and the reactivation of the Nampa 07-34 Clearwater pad. The 2026 capital program for the area remains approximately $110 million, supporting average annual production of approximately 12,250 boe/d.

Strong Dawson Performance – Using our first rig, we recently rig released the final well on the seven-well integrated waterflood Dawson 08-24 Clearwater pad (7.0 net wells comprising 3.0 net producers and 4.0 net injectors). The pad's first three producing wells are now on production and delivering encouraging initial results, with the total pad currently producing ~700 boe/d (100% oil). The second rig continues to advance the program, with two of the three wells (3.0 net) on the HVS 16-18 Bluesky pad now on production and cleaning up.

Clearwater Waterflood Development – Construction of additional waterflood infrastructure is progressing at Dawson. Water pipelines are being installed to connect new pads to the existing water facility at the Dawson 04-24 Clearwater pad, while construction has commenced on the water facility and associated infrastructure at the Dawson 13-23 Clearwater pad.

Infrastructure Expansion – Construction of the Nampa all-season access road is complete, marking an important step in the waterflood integrated, full-field development of the Clearwater. The road also enabled the reactivation of the Nampa 07-34 Clearwater pad, restoring 131 boe/d of oil production. In addition, approximately seven kilometres of all-season road infrastructure is being constructed at North Walrus to support the reactivation of approximately 100 boe/d of currently shut-in production. Both roads will facilitate unlocking additional near-term drilling inventory and exploration opportunities.

Walrus Advancement - In Walrus, we will be adding an integrated waterflood pattern into the Bluesky formation at the 6-20 Pad. The pattern is designed to follow success we have seen in mature areas of Peace River with waterflooding the Bluesky. The pattern will utilize a lined central trunk leg allowing for additional piloting of a circulation string to increase productivity in conjunction with the injector pressure support. The pad is planned to commence drilling in late 2026.

LIGHT OIL ASSET HIGHLIGHTS

Development activity in the area continues to advance, with two rigs currently operating and expected to remain active through the remainder of the year. This sustained drilling program reflects continued investment in the area, with total 2026 light oil capital expenditures of approximately $200 million supporting average annual production of approximately 16,750 boe/d, while positioning the area for strong year-over-year production growth in 2027.

Crimson Development – Both wells on the 01-05 Belly River pad have been drilled and completed and were brought onstream at the end of August.

Open Creek Development – The second light oil rig has commenced drilling a five-well pad at 11-28, targeting both the Belly River and Cardium formations to enhance capital efficiencies.

GUIDANCE

Our updated 2026 operational guidance is outlined below and compared with the guidance provided in our July 2026 announcement. The revised production range primarily reflects the weather-related development delays and third-party compressor issue discussed above. Accordingly, certain per-boe guidance metrics have been adjusted. The lower liquids weighting in our Light Oil assets reflects the weather-related delay in production additions. We expect liquids weightings for both the Company and the Light Oil assets to increase in 2027 with higher Belly River and heavy oil production. Additionally, we have updated our commodity price assumptions.

(1) Refer to 'Supplemental Production Disclosure' below for details of production by product types. (2) Refer to "Budget Assumptions Information" below for further details. (3) See "Non-GAAP and Other Financial Measures" section below for further details. (4) Based on our WTI guidance, we assume no contingent value payments will be made in connection with the Wilson Creek asset acquisition. See our July 2, 2026 press release for further details. If triggered, such payments would be capped at $1.75 million per quarter through Q2 2027. (5) Net debt figures include the impact of purchases under our normal course issuer bid (" NCIB ") ($30 million) and prepaid equity forwards ($20 million) thus far in 2026. (6) Metric is based on trailing 12 months at June 30, 2027 and assumes for the first half 2027 a US$75/bbl WTI oil price and ~$160 million of capital and decommissioning expenditures.

Estimated sensitivities to selected key assumptions on FFO for 2026 (including our current hedge position and realized prices up to August 2026) are as follows:

2026 CAPITAL AND OPERATING PROGRAM

The breakdown of operated wells expected to be rig released in 2026 is as follows:

(1) Including the last well of our 2025 program rig released on January 2, 2026. (2) In addition, Obsidian Energy expects to participate in a 9 (4.0 net) non-operated wells.

HEDGING UPDATE

Currently, we have the following contracts outstanding on a weighted average basis:

(1) The Company can settle the contract, or a portion of the contract, at any time.

UPDATED CORPORATE PRESENTATION

For further information on these and other matters, Obsidian Energy will post an updated corporate presentation on our website, www.obsidianenergy.com , in due course.

ABOUT OBSIDIAN ENERGY

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company's business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.

Obsidian Energy is headquartered in Calgary and listed on the Toronto Stock Exchange and NYSE American (TSX: OBE) (NYSE American: OBE). To learn more, visit Obsidian Energy's website .

ADDITIONAL READER ADVISORIES

SUPPLEMENTAL PRODUCTION DISCLOSURE

Outlined below is the expected average production by product based on the midpoint of our 2026 guidance estimates.

BUDGET ASSUMPTIONS INFORMATION

Capital Expenditures

Asset level capital does not include $1 million in corporate capital in both our updated and previous guidance cases.

Commodity Pricing

Updated guidance pricing assumptions include risk management (hedging) adjustments as of September 11, 2026, while our previous guidance pricing assumptions include risk management (hedging) adjustments as of June 30, 2026.

Pricing assumptions for updated guidance are from October to December 2026 while the previous guidance was based on July to December 2026.

Per Share Calculations

Per-share calculations assume 66.6 million weighted-average shares outstanding for updated guidance and an estimated 66.8 million for previous guidance.

OIL AND GAS INFORMATION ADVISORY

Barrels of oil equivalent (" boe ") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

TEST RESULTS AND INITIAL PRODUCTION RATES

Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. Readers are cautioned that short-term rates should not be relied upon as indicators of future performance of these wells and therefore should not be relied upon for investment or other purposes. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered preliminary until such analysis or interpretation has been completed.

NON-GAAP AND OTHER FINANCIAL MEASURES

Throughout this news release and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income and cash flow from operating activities as indicators of our performance. The interim consolidated financial statements and MD&A for the three and six months ended June 30, 2026, are on the Company's website at www.obsidianenergy.com and under our SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov . The disclosure under the section ' Non-GAAP and Other Financial Measures' in the MD&A is incorporated by reference into this news release.

Non-GAAP Financial Measures

The following measures are non-GAAP financial measures: AFFO, FFO; net debt; net operating costs; netback; and free cash flow. These non-GAAP financial measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See the disclosure under the section ' Non-GAAP and Other Financial Measures' in our MD&A for the three and six months ended June 30, 2026, for an explanation of the composition of these measures, how these measures provide useful information to an investor, and the additional purposes, if any, for which management uses these measures.

Non-GAAP Ratios

The following measures are non-GAAP ratios: AFFO (basic per share ($/share)), which use AFFO as a component; FFO (basic per share ($/share)), which uses FFO as a component; net operating costs ($/boe), which uses net operating costs as a component; netback ($/boe), which uses netback as a component; and net debt to FFO, which uses net debt and FFO as components. These non-GAAP ratios are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See the disclosure under the section ' Non-GAAP and Other Financial Measures' in our MD&A for the three and six months ended June 30, 2026, for an explanation of the composition of these non-GAAP ratios, how these non-GAAP ratios provide useful information to an investor, and the additional purposes, if any, for which management uses these non-GAAP ratios.

Supplementary Financial Measures

The following measure is a supplementary financial measure: G&A costs ($/boe). See the disclosure under the section ' Non-GAAP and Other Financial Measures' in our MD&A for the three and six months ended June 30, 2026, for an explanation of the composition of this measure.

FUTURE-ORIENTED FINANCIAL INFORMATION

This release contains future-oriented financial information (" FOFI ") and financial outlook information relating to the Company's prospective results of operations, operating costs, expenditures, production, FFO, FCF, net operating costs, and net debt, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth below under ' Forward-Looking Statements' . The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included this FOFI to provide readers with a more complete perspective on the Company's business as of the date hereof and such information may not be appropriate for other purposes.

Without limitation of the foregoing, this news release contains information regarding updated guidance for our 2026 capital expenditures, production levels, AFFO, AFFO per share, FFO, FFO per share, FCF, FCF per share, net operating costs, net debt and net debt to FFO ratios, which are based on various factors and assumptions that are subject to change including regarding production levels, commodity prices, operating and other costs and capital expenditure levels. To the extent that such estimates constitute FOFI or a financial outlook, they are included to provide readers with an understanding of the Company's anticipated plans and financial results based on the capital expenditures and other assumptions described and readers are cautioned that the information may not be appropriate for other purposes.

ABBREVIATIONS

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbour" provisions of applicable securities legislation. 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 addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: our targeted year-over-year production growth in 2027; our anticipated 2027 guidance release date; our plans and timing in Walrus in connection with the integrated waterflood program; our estimated 2026 exit rate; our development and operational plans for 2026 and beyond; our expectations for our road infrastructure and resulting production, drilling and exploration opportunities; our updated 2026 guidance for production (including mixture and type), capital and decommissioning expenditures, net operating costs, general & administrative costs, AFFO and AFFO/share, FFO and FFO/share, FCF and FCF/share, Net debt and net debt to FFO (on different time frames); our expected sensitivities to changes in WTI, foreign exchange rate, MSW, AECO and WCS; our expectations for our liquids weighting in 2027; our guidance for asset level average production, capital expenditures, net operating costs, netbacks, net operating income and the asset level FCF; our hedges; and the expected timing of our updated corporate presentation.

With respect to forward-looking statements contained in this document, the Company has made assumptions regarding, among other things: the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; that the Company does not dispose of or acquire material producing properties or royalties or other interests therein (except as disclosed herein); that regional and/or global health-related events will not have any adverse impact on energy demand and commodity prices in the future; global energy policies going forward, including the continued ability and willingness of members of OPEC and other nations to agree on and adhere to production quotas from time to time; our ability to qualify for (or continue to qualify for) new or existing government programs, and obtain financial assistance therefrom, and the impact of those programs on our financial condition; our ability to execute our plans as described herein and in our other disclosure documents, and the impact that the successful execution of such plans will have on our Company and our stakeholders, including our ability to return capital to shareholders and/or further reduce debt levels; future capital expenditure and decommissioning expenditure levels; expectations and assumptions concerning applicable laws and regulations, including with respect to environmental, safety and tax matters; future operating costs and G&A costs and the impact of inflation thereon; future 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 hedging activities; future oil, natural gas liquids and natural gas production levels; future exchange rates, interest rates and inflation rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including prolonged spring break-up, extreme weather events such as wildfires, flooding and drought, infrastructure access (including the potential for blockades or other activism) and delays in obtaining regulatory approvals and third-party-consents; the ability of the Company's contractual counterparties to perform their contractual obligations; 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 (if necessary) to extend the revolving period and term out period of our credit facility, our ability to maintain the existing borrowing base under our credit facility, our ability (if necessary) to replace our syndicated bank facility and our ability (if necessary) to finance the repayment of our senior unsecured notes on maturity or pursuant to the terms of the underlying agreement; the accuracy of our estimated reserve volumes; and our ability to add production and reserves through our development and exploitation activities.

Although the Company believes 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 risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the possibility that we change our budgets (including our capital expenditure budgets) in response to internal and external factors, including those described herein; the possibility that the Company will not be able to continue to successfully execute our business plans and strategies in part or in full, and the possibility that some or all of the benefits that the Company anticipates will accrue to our Company and our stakeholders as a result of the successful execution of such plans and strategies do not materialize (such as our inability to return capital to shareholders and/or reduce debt levels to the extent anticipated or at all); the possibility that the Company ceases to qualify for, or does not qualify for, one or more existing or new government assistance programs, that the impact of such programs falls below our expectations, that the benefits under one or more of such programs are decreased, or that one or more of such programs is discontinued; the impact on energy demand and commodity prices of regional and/or global health-related events and the responses of governments and the public thereto, including the risk that the amount of energy demand destruction and/or the length of the decreased demand exceeds our expectations; the risk that there is another significant decrease in the valuation of oil and natural gas companies and their securities and in confidence in the oil and natural gas industry generally, whether caused by regional and/or global health-related events, the worldwide transition towards less reliance on fossil fuels and/or other factors; the risk that the financial capacity of the Company's contractual counterparties is adversely affected and potentially their ability to perform their contractual obligations; the possibility that the revolving period and/or term out period of our credit facility and the maturity date of our senior unsecured notes is not extended (if necessary), that the borrowing base under our credit facility is reduced, that the Company is unable to renew or refinance our credit facilities on acceptable terms or at all and/or finance the repayment of our senior unsecured notes when they mature on acceptable terms or at all and/or obtain new debt and/or equity financing to replace our credit facilities and/or senior unsecured notes or to fund other activities; the possibility that we are forced to shut-in production, whether due to commodity prices decreasing, prolonged spring break-up, extreme weather events such as wildfires, inability to access our properties due to blockades or other activism, or other factors; the risk that OPEC and other nations fail to agree on and/or adhere to production quotas from time to time that are sufficient to balance supply and demand fundamentals for oil; 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 oil, natural gas liquids and natural gas, price differentials for 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, including the impact of the Canadian/U.S. dollar exchange rate on our revenues and expenses; fluctuations in interest rates, including the effects of interest rates on our borrowing costs and on economic activity, and including the risk that elevated interest rates cause or contribute to the onset of a recession; the risk that our costs increase due to inflation, supply chain disruptions, scarcity of labour and/or other factors, adversely affecting our profitability; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including prolonged spring break-up, extreme cold during winter months, wildfires, flooding and droughts (which could limit our access to the water we require for our operations)); the risk that wars and other armed conflicts adversely affect world economies and the demand for oil and natural gas, including the ongoing war between Russia and Ukraine and/or hostilities in the Middle East; the possibility that fuel conservation measures, alternative fuel requirements, increasing consumer demand for alternatives to hydrocarbons, government mandates requiring the sale of electric vehicles and/or electrification of the power grid, and technological advances in fuel economy and renewable energy generation systems could permanently reduce the demand for oil and natural gas and/or permanently impair the Company's ability to obtain financing and/or insurance on acceptable terms or at all, and the possibility that some or all of these risks are heightened as a result of the response of governments, financial institutions and consumers to a regional and/or global health-related event and/or the influence of public opinion and/or special interest groups.

Additional information on these and other factors that could affect Obsidian Energy, or its operations or financial results, are included in the Company's Annual Information Form (see 'Risk Factors' and 'Forward-Looking Statements' therein) which may be accessed through the SEDAR+ website ( www.sedarplus.ca ), EDGAR website ( www.sec.gov ) or Obsidian Energy's website. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Unless otherwise specified, 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 or revise any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American in the United States under the symbol "OBE".

All figures are in Canadian dollars unless otherwise stated.

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September 14, 2026 - 4:00 AM PDT

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