Obsidian Energy Completes Major Share Sale in InPlay Oil, Reduces Debt and Terminates Agreements.

Obsidian Energy has completed a major share sale in InPlay Oil, selling 9.1 million common shares for $91.4 million. The sale represents approximately 32.7% of InPlay's outstanding shares and is part of Obsidian's strategy to monetize equity and reduce debt. Obsidian's board nominees have resigned from InPlay's board, and certain agreements between the two companies have been terminated. The transaction was completed on August 7, 2025.

Obsidian Energy Ltd. (TSX: OBE) has completed the sale of its 9,139,784 common shares in InPlay Oil Corp. (TSX: IPY) for a total of $91,397,840. The transaction, announced on August 7, 2025, represents approximately 32.7% of InPlay's outstanding shares and is part of Obsidian's broader strategy to monetize equity and reduce debt.

The sale was executed at a price of $10.00 per share, with an aggregate purchase price of $91,397,840. However, the total purchase price was reduced by $29,563.49 due to filing fees incurred by the Purchaser in connection with the clearance of the transaction under the Competition Act (Canada) [1].

Upon the completion of the sale, Obsidian Energy no longer owns any InPlay shares but retains 20,834 restricted awards (InPlay RAs) granted under InPlay's incentive award plan, representing 0.07% of the issued and outstanding InPlay shares. These InPlay RAs are expected to be forfeited 30 days following the closing of the transaction, as per the terms of InPlay's incentive award plan [1].

The transaction was completed under the "private agreement exemption" contained in Section 4.2 of National Instrument 62-104 - Take-Over Bids and Issuer Bids (NI 62-104), as it was not made from more than five persons in the aggregate, was not made generally to all holders of InPlay shares, and the value of the consideration paid did not exceed 115% of the market price of the InPlay shares as determined in accordance with NI 62-104 [1].

Obsidian Energy's board nominees have resigned from InPlay's board, and certain agreements between the two companies have been terminated. The transaction was completed in reliance on the private agreement exemption and was not subject to any general offer to purchase InPlay shares [1].

Obsidian Energy intends to use the proceeds from this transaction to repay existing indebtedness. The company expects to initially use the proceeds to reduce its debt obligations.

References
[1] https://www.nasdaq.com/press-release/obsidian-energy-announces-closing-sale-common-share-position-inplay-oil-corp-2025-08