Obsidian Energy Proposes Combination Transaction to Bonterra Energy Corp.

OBSIDIAN ENERGY LTD. today announced that it has sent the following letter to Bonterra Energy Corp. (TSX: BNE) ("Bonterra") proposing a combination transaction that would be expected to result in significant cost synergies and drive substantial accretion across all financial metrics for both Obsidian Energy and Bonterra. As you are aware, Obsidian Energy Ltd. ("Obsidian Energy") and Bonterra Energy Corp. ("Bonterra") have been engaged in periodic discussions pertaining to a potential friendly business combination transaction since at least January of 2019.  Based on the extensive due diligence and analysis conducted by our financial advisor Tudor, Pickering, Holt & Co. ("TPH") and our senior management team, we strongly believe that a combination between our two companies would result in significant cost synergies that would drive very substantial accretion across all financial metrics while creating a "Cardium Champion" with significant scale given the contiguous nature of our Pembina operations