Obsidian Energy In Strategic Alternatives

Obsidian Energy Ltd. has started a formal process to explore strategic alternatives.

Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combination, a disposition of all or a portion of the company's assets, a recapitalization, refinancing of its capital structure, or any combination of these.

“Obsidian Energy believes that, given the company's position as the largest producer and holder of Cardium acreage, the initiation of the strategic review process will allow for consideration of consolidation within the Cardium play in Alberta,” the company stated. “Furthermore, such consolidation if possible, may allow for the creation of additional scale, efficiency and financial strength.”

The board has hired Tudor, Pickering, Holt & Co. as its financial advisor in connection with this review and analysis of strategic alternatives.

“Given the nature of the strategic alternatives process, the company does not intend to provide updates until such time as the board approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is necessary or appropriate,” the company stated.