Obsidian Energy Announces Termination of Agreement to Dispose of its Interest in the Peace River Oil Partnership

OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) announces that the purchase and sale agreement providing for the sale of our 55 percent interest in the Peace River Oil Partnership (the “Partnership“) to a third party has been terminated.

In order for the sale to proceed, the consent to the transfer of our Partnership units and the transfer of operatorship of the Partnership was required, however, the consents for these transfers were not obtained and the agreement was terminated.

We intend to pursue all other viable alternatives for the disposition of our interest in the Partnership and continue to focus on our high-quality, light oil Cardium asset.