CALGARY, March 12, 2018 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX/NYSE - OBE) ("Obsidian Energy", the
"Company", "we", "us" or "our")
announces that it received notification on March 12, 2018 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 because the
average closing price of Obsidian Energy's common shares was less
than US$1.00 per share over a
consecutive 30 trading day period. As of March 8, 2018, the average closing price of
Obsidian Energy's common shares over the preceding consecutive 30
trading day period was US$0.99 per
share. The issuance of the notification is not discretionary and is
sent automatically when a listed company's share price falls below
the NYSE's minimum price listing standard.
As described in our press release dated March 7, 2018, Obsidian Energy will propose a
consolidation of the Company's outstanding common shares at the
upcoming Annual General Meeting. Obsidian Energy believes that a
share consolidation will reduce its outstanding equity float to a
level more suitable to the current size of the Company and appeal
to a broader universe of investors. The proposed consolidation also
seeks to remedy our non-compliance with the NYSE's minimum share
price listing standard.
Under the NYSE's rules, Obsidian Energy can avoid delisting if,
within six months from the date of the NYSE notification, its
common shares have 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.
Therefore, the price condition following the proposed consolidation
is cured if the common share 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,
the NYSE will commence suspension and delisting procedures.
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").
Obsidian Energy intends to notify the NYSE within 10 business
days from the date of the 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.
Obsidian Energy's common shares 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 the Company will look to cure the price condition by
completing a share consolidation at the Annual General Meeting;
that the Company believes a share consolidation will reduce its
outstanding equity float to a level more suitable to the current
size of the Company and appeal to a broader universe of investors;
that the proposed consolidation seeks to remedy our non-compliance
with the NYSE's minimum share price listing standard; that if at
the expiration of the applicable cure period Obsidian Energy has
not regained compliance, the NYSE will commence suspension and
delisting procedures; 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.