Obsidian Energy announced the results of its independent reserves evaluation for the year ended December 31, 2025, prepared by GLJ Ltd.

OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce the results of our independent reserves evaluation for the year ended December 31, 2025 (the "2025 Reserve Report") prepared by GLJ Ltd. ("GLJ").

"Our reserves report reflects what was a transformational year at the Company given the disposition of our Pembina asset in April 2025," commented Stephen Loukas, Obsidian Energy's President and CEO. "However, organic activity once again more than replaced production across all reserve categories despite moderating our capital program in the second half of the year in response to lower commodity prices. The Pembina disposition had a material impact on our results as it represented approximately 35 percent of the Company's reserve volumes but importantly reduced corporate decommissioning liabilities by over half and significantly improved our balance sheet strength and liquidity position. Lastly, we are pleased with both the waterflood additions that were added in Peace River, and recognition of our emerging Belly River play in Willesden Green."

HIGHLIGHTS

Our 2025 capital program consisted of further development and delineation in both Peace River and Willesden Green. In the first half of the year, we focused on primary development as well as exploration in Peace River, specifically in Harmon Valley South ("HVS") and Dawson. Our program in the second half of the year was balanced between heavy and light oil assets with continued development in Peace River, particularly in the Clearwater, in addition to advancing waterflood initiatives with one pilot in Dawson (Clearwater) and another in HVS (Bluesky). In Willesden Green, we were active in Open Creek, including drilling initial wells in the emerging Belly River formation with strong results.

Key highlights within the 2025 Reserve Report are as follows:

Solid reserve replacement with 118 percent on a PDP reserves basis, 185 percent on a 1P reserves basis and 235 percent on a 2P reserves basis, based on 2025 production (adjusted for dispositions) and driven by the impact of drilling infill wells and field extensions in both Peace River and Willesden Green.

Peace River reserves continued to increase and benefitted from waterflood projects, which increased reserves on a 2P basis by 3.5 million boe, particularly in Dawson. The Company is anticipating future additions as our waterflood initiatives expand.

Our successful Belly River program in Willesden Green added 12 locations in 2025 and 5.6 million boe where previously minimal locations were booked. As the program scope expands in the area, the Company expects to continue to add future locations to our reserves book.

Reserves before-tax net present value discounted at 10 percent ("NPV10") were impacted by the Pembina disposition and a lower oil price forecast. The reduction in value on a per share basis was mitigated by strong reserve additions and our share buyback program.

PDP (1): $961 million

Including dispositions, a 41 percent decrease (35 percent decrease on a per share basis).

Excluding dispositions, a 10 percent decrease (1 percent decrease on a per share basis).

Excluding dispositions and economic factors, an 8 percent increase (18 percent increase on a per share basis)

1P (1): $1,446 million

Including dispositions, a 36 percent decrease (30 percent decrease on a per share basis).

Excluding dispositions, a 6 percent decrease (3 percent increase on a per share basis).

Excluding dispositions and economic factors, a 14 percent increase (25 percent increase on a per share basis)

2P (1): $2,103 million

Including dispositions, a 32 percent decrease (26 percent decrease on a per share basis).

Excluding dispositions, a 3 percent decrease (6 percent increase on a per share basis).

Excluding disposition and economic factors, a 16 percent increase (27 percent increase on a per share basis)

Future Development Capital ("FDC") is moderated in both the 1P and 2P reserve categories to reflect the current commodity price environment, the Pembina disposition and anticipated capital spending levels. FDC generates a five-year program of approximately $243 million per year on a 2P reserve basis.

Our total undeveloped 2P reserve locations (excluding the impact of the Pembina disposition) increased by 39 net locations to 357 total net locations booked, with 22 net new locations in Willesden Green and 20 net new location in Peace River offset by a reduction of 3 net locations in Viking. Below is a breakdown of locations by area.

130 net locations in Willesden Green/PCU #11;

(Cardium 113 locations, Belly River 14 locations, Manville 3 locations)

103 net locations in the Peace River (Clearwater);

77 net locations in the Peace River (Bluesky); and

47 net locations in the Viking.

Reserve life index ("RLI") continues to be stable with approximately 6.0, 10.1 and 13.3 years on a PDP, 1P, and 2P reserves basis.

Finding & Development ("F&D") costs including changes in FDC were $25.70/boe for PDP, $19.44/boe for 1P and $20.68/boe for 2P. Finding, Development and Acquisition ("FD&A") costs including changes in FDC were ($0.87)/boe for PDP, $11.71/boe for 1P and $9.09 /boe for 2P. FD&A costs are lower than F&D costs (and negative for PDP) primarily due to the removal of FDC associated with the Pembina disposition.

Lower oil prices impacted our expected 2025 operating netback of $27.48/boe. As a result, our 2025 recycle ratios for F&D (including changes in FDC) were 1.1x for PDP, 1.4x for 1P and 1.3x for 2P.

Corporate decline rate on a PDP basis was relatively unchanged year-over-year at 23 percent in 2025 compared to 22 percent in 2024.

SUMMARY OF 2025 RESERVES

GLJ conducted an independent reserves evaluation of 100 percent of our reserves effective December 31, 2025, using a three-consultant average ("IC3") price deck of forecast commodity prices and assumptions at December 31, 2025. This evaluation was prepared in accordance with definitions, standards, and procedures set out in the Canadian Oil and gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Reserves included below are company share gross reserves which are the Company's total working interest reserves before the deduction of any royalties and excluding any royalty interests payable to the Company. The numbers in the tables below may not add due to rounding.

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