CALGARY, Sept. 15, 2017 /CNW/ - OBSIDIAN ENERGY LTD.
(TSX/NYSE - OBE) ("Obsidian Energy", "we", "us" or "our") announces that it received notification on
September 14, 2017 from the New York Stock Exchange (the "NYSE") that Obsidian Energy is no
longer in compliance with one of the NYSE's continued listing standards applicable to Obsidian Energy because the average closing
price of Obsidian Energy's common stock was less than US$1.00 per share over a consecutive 30
trading day period. As of September 12, 2017, the average closing price of Obsidian Energy's
common stock over the preceding consecutive 30 trading day period was US$0.99 per share. The
issuance by the NYSE of the notification is not discretionary and is sent automatically when a listed company's stock price falls
below the NYSE's minimum price listing standard.
Non-compliance with the NYSE's price listing standard does not affect Obsidian Energy's business operations or its reporting
requirements to the U.S. Securities and Exchange Commission (the "SEC"), nor does it breach or cause an event of default
under any of Obsidian Energy's agreements with its lenders. Obsidian Energy continues to be in compliance with the terms of
all of those agreements. In addition, non-compliance with the NYSE price listing standard does not affect the continued
listing and trading of Obsidian Energy's common shares on the Toronto Stock Exchange (the "TSX").
Under the NYSE's rules, Obsidian Energy can avoid delisting if, within six months from the date of the NYSE notification, its
common stock has a closing price on the last trading day of any calendar month and a concurrent 30 trading day average closing
price of at least US$1.00 per share. Additionally, Obsidian Energy could cure the price
condition by advising the NYSE of its intention to consolidate its outstanding equity float to a level more suitable to the
current size of the company, which would require Obsidian Energy to obtain shareholder approval no later than our next annual
general meeting. The price condition following such a consolidation is cured if the common stock price promptly exceeds
US$1.00 and remains above that level for at least the following 30 trading days.
If at the expiration of the applicable cure period Obsidian Energy has not regained compliance, or Obsidian Energy has not
obtained shareholder approval by the next annual meeting to consolidate its shares outstanding, the NYSE will commence suspension
and delisting procedures. Management of Obsidian Energy will actively monitor the stock price and evaluate all available options
in order to regain compliance with the NYSE's price listing standard within the applicable cure period.
Obsidian Energy intends to notify the NYSE within 10 business days from the date of the NYSE notification that it intends to
cure this price deficiency and return to compliance with the NYSE's price listing standard prior to the expiration of the
applicable cure period or by the next annual general meeting.
Obsidian Energy's common stock will continue to be listed and traded on the NYSE during the applicable cure period, subject to
compliance with the NYSE's other continued listing standards, under the symbol "OBE", but the NYSE will assign a ".BC" indicator
to the symbol to denote that Obsidian Energy is below the NYSE's price listing standard. This indicator will be removed at
such time as Obsidian Energy is deemed compliant with the NYSE's price listing standard.
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 harbor" 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", "pursue" and similar words suggesting future events or future performance. In particular, this document contains
forward-looking statements pertaining to, without limitation, that non-compliance with the NYSE's price listing standard does not
affect Obsidian Energy's business operations or its reporting requirements to the SEC and does not breach or cause an event of
default under any of Obsidian Energy's agreements with its lenders, Obsidian Energy's continued compliance with the terms of all
of those agreements, Obsidian Energy's ability to regain compliance with the NYSE's price listing standard within the applicable
cure period, that management will actively monitor the stock price and evaluate all available options in order to regain
compliance with the NYSE's price listing standard within the applicable cure period, Obsidian Energy's intention to notify the
NYSE within 10 business days that it intends to cure this price deficiency and return to compliance with the NYSE's price listing
standard prior to the expiration of the applicable cure period, and the continued listing and trading of Obsidian Energy's common
shares on the TSX.
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
and assumptions 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 predictions, forecasts, projections and other
forward-looking statements will not occur, 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. Important factors that could cause actual results and events to differ from those described in the
forward‑looking statements can be found in our public filings (including our Annual Information Form) 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 or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement.
SOURCE Obsidian Energy Ltd.
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