OBE · Obsidian Energy Ltd.

Obsidian Energy's Q1 2026 operational update highlights exceptional well performance across its key assets, driving potential upside to its unchanged full-year guidance. In Peace River, the Company rig-released 11 net wells, with standout results from Clearwater pads: West Dawson 09-21 achieved IP22 of 299 boe/d (100% oil) at superior 16.5 API gravity and low 767cP viscosity, while Nampa 06-28 posted 143 boe/d IP28 at 16.2 API. These metrics represent the highest oil quality in the area, supported by offsetting waterflood injectors now commissioned, with injection starting late April at Nampa and West Dawson pilots. The Dawson 04-24 waterflood pilot, fully operational for two months, shows flattened producer profiles and consistent injectivity, informing optimized geometries in new pilots. Bluesky step-out at Cadotte delivered solid IP30 of 196 boe/d (100% oil). In Willesden Green, Belly River development at Open Creek 11-28 ramped to over 1,000 boe/d (IP30 303 boe/d per well, 78% liquids), with rates continuing to increase post-cleanup. Cardium returns yielded IP30 of 523 boe/d per well (79% liquids) at 11-15, boosted by near-100% working interest. Non-operated Pembina Cardium added 2.7 net wells at 307 boe/d IP30 gross. Management notes three more wells expected onstream mid-April. Amid oil price gains from Iran conflict, hedging expanded into Q3 at premiums to $60 WTI budget, with US$70/$80 sensitivity showing FFO jumping to $300M/$331M and FCF to $82M/$113M. Share repurchases continue under NCIB, signaling confidence in valuation. Participation in BMO CAPP Symposium underscores investor engagement.