OBSIDIAN ENERGY LTD. (TSX:OBE) (NYSE:OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") provides an update to our 2026 capital program and guidance, reflecting strong operational results and an improved commodity price outlook.

Highlights:

Increasing 2026 capital program by ~$100 million to $300 - $325 million, targeting ~15% production growth in 2027, while generating incremental free cash flow ("FCF")

Approximately two-thirds of the incremental investment is directed to accelerate Belly River and Cardium development in Willesden Green, with the remainder allocated towards expanding the Clearwater waterflood program at Peace River

Forecast 2026 Funds Flow from Operations ("FFO") increases 40% to $317 million ($4.74/share) and net debt to FFO improves to ~0.9x, assuming US$80/bbl WTI in H2 2026

Acquired over 150 sections of land, predominately within the Peace River Oil Sands fairway, with significant multi-zone development potential

"Following a strong start to 2026 and supported by a constructive commodity price environment we expect to continue into 2027, we are increasing our 2026 capital program by approximately $100 million to accelerate light oil and total production growth, enhance capital efficiencies, and advance our waterflood initiatives", commented Stephen Loukas, Obsidian Energy's President and CEO. "Approximately $65 million of the incremental capital will be directed to Willesden Green, where Belly River results continue to exceed expectations and a second rig drilling Cardium commences in September."