CALGARY, Sept. 10, 2019 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX – OBE, NYSE – OBE) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces that the Board of Directors (the "Board") has
determined that it is in the best interest of the Company and its
stakeholders to initiate a formal process to explore strategic
alternatives.
This process is intended to evaluate the Company's strategic
options and alternatives to maximize shareholder value. Such
strategic alternatives may include, but are not limited to, a
corporate sale, merger or other business combination, a disposition
of all or a portion of the Company's assets, a recapitalization,
refinancing of its capital structure, or any combination of the
foregoing.
While the outcome of the strategic review process will depend on
the opportunities which arise within such process (and there is no
assurance of any particular outcome), Obsidian Energy believes
that, given the Company's position as the largest producer and
holder of Cardium acreage, the initiation of the strategic review
process will allow for consideration of consolidation within the
Cardium play in Alberta.
Furthermore, such consolidation if possible, may allow for the
creation of additional scale, efficiency and financial
strength.
The Board will undertake a broad review of the potential
alternatives to enhance stakeholder value and has hired Tudor,
Pickering, Holt & Co. as its financial advisor in connection
with this review and analysis of strategic alternatives. Given the
nature of the strategic alternatives process, the Company does not
intend to provide updates until such time as the Board approves a
definitive transaction or strategic alternative, or otherwise
determines that further disclosure is necessary or appropriate.
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: the intentions of
the strategic alternative process and the possible alternatives
that may arise due to such process; that the initiation of the
strategic review process will allow for consideration of
consolidation within the Cardium play in Alberta and that may allow for the creation of
additional scale, efficiency and financial strength; that the Board
will undertake a broad review of the potential alternatives to
enhance shareholder value; and when the Company will provide
updates to the process.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things,
our ability to initiate a formal process to explore strategic
alternatives to potentially find a transaction on acceptable terms.
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 are unable to identify an
acceptable strategic alternative process and/or that we are unable
to enter into an agreement in connection with that process on
acceptable terms or at all and/or that we are unable to satisfy the
conditions precedent set out in any such agreement and are
therefore unable to close thereunder, 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.
Obsidian Energy shares are listed on both the Toronto Stock
Exchange (symbol "OBE") and New York Stock Exchange (symbol "OBE").
All figures are in Canadian dollars unless otherwise stated.
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SOURCE Obsidian Energy Ltd.