Filed by Obsidian Energy Ltd. (Commission File No. 001-32895) Pursuant to
Rule 425 under the Securities Act of 1933 Subject Company: Bonterra Energy Corp. Creating a Cardium Champion The Proposed Combination of Obsidian Energy and Bonterra September 8, 2020Filed by Obsidian Energy Ltd. (Commission File No. 001-32895)
Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Bonterra Energy Corp. Creating a Cardium Champion The Proposed Combination of Obsidian Energy and Bonterra September 8, 2020
Important Notice to the Readers This presentation of Obsidian Energy Ltd.
does not constitute an offer to buy or sell, or a solicitation of an offer to sell or buy, any securities. Full details of the proposed offer by Obsidian Energy to purchase all of the issued and outstanding common shares (“Bonterra
Shares”) in the capital of Bonterra Energy Corp. for two common shares in the capital of Obsidian Energy (“Obsidian Shares”) per Bonterra share (the “Offer”) will, once the Offer is formally commenced, be set out in a
bid circular and accompanying offer documents (collectively, the “Offer Documents”), which Obsidian Energy would mail in accordance with applicable Canadian securities laws and file with the Canadian securities regulatory authorities. In
connection with the Offer, Obsidian Energy expects to file with the SEC a registration statement (the “Registration Statement”), which will contain a prospectus relating to the Offer (a “Prospectus”). This presentation is not
a substitute for the Offer Documents, the Prospectus or the Registration Statement. Such documents are not currently available, but once available BONTERRA SECURITY HOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS, ALL
DOCUMENTS INCORPORATED BY REFERENCE, ALL OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR SUPPLEMENTS TO ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE EACH WILL CONTAIN IMPORTANT INFORMATION ABOUT OBSIDIAN ENERGY, BONTERRA AND THE OFFER.
Materials filed with the Canadian securities regulatory authorities will be available electronically without charge at www.sedar.com. Materials filed with the SEC will be available electronically without charge at the SEC's website at www.sec.gov
and the materials will be posted on the Obsidian Energy website at: www.obsidianenergy.com Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as
amended. Securities will not be offered, nor will deposits of securities be accepted from a person, in any State of the United States in which the offering of securities, or acceptance thereof, would not be in compliance with the laws of such
jurisdiction. Neither the SEC nor any securities commission of any State of the United States has (a) approved or disapproved of the Offer, (b) passed upon the merits or fairness of the Offer, or (c) passed upon the adequacy or accuracy of the
disclosure in this document. Any representation to the contrary is a criminal offense in the United States. For further details, refer to “Details on Intention to Make an Offer” at the end of this presentation. This presentation also
contains references to certain financial measures which do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore are considered non-generally accepted accounting practice
(“Non-GAAP”) measures. This presentation also includes various industry terms, oil and gas disclosure and forward looking-statements. For further details, refer to “Definitions and Industry Terms”, “Non-GAAP Measure
Advisory”, “Oil and Gas Information Advisory”, “Reserves Disclosure and Definitions Advisory” and “Forward-Looking Statements Advisory” at the end of this presentation. All references to $ or C$ in this news
release are to Canadian dollars and all references in this news release to $US are to U.S. dollars. All slides in this presentation should be read in conjunction with “Definitions and Industry Terms”, “Non-GAAP Measure
Advisory”, “Oil and Gas Information Advisory”, “Reserves Disclosure and Definitions Advisory” and “Forward-Looking Information Advisory”. 2Important Notice to the Readers This presentation of Obsidian Energy
Ltd. does not constitute an offer to buy or sell, or a solicitation of an offer to sell or buy, any securities. Full details of the proposed offer by Obsidian Energy to purchase all of the issued and outstanding common shares (“Bonterra
Shares”) in the capital of Bonterra Energy Corp. for two common shares in the capital of Obsidian Energy (“Obsidian Shares”) per Bonterra share (the “Offer”) will, once the Offer is formally commenced, be set out in a
bid circular and accompanying offer documents (collectively, the “Offer Documents”), which Obsidian Energy would mail in accordance with applicable Canadian securities laws and file with the Canadian securities regulatory authorities. In
connection with the Offer, Obsidian Energy expects to file with the SEC a registration statement (the “Registration Statement”), which will contain a prospectus relating to the Offer (a “Prospectus”). This presentation is not
a substitute for the Offer Documents, the Prospectus or the Registration Statement. Such documents are not currently available, but once available BONTERRA SECURITY HOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS, ALL
DOCUMENTS INCORPORATED BY REFERENCE, ALL OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR SUPPLEMENTS TO ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE EACH WILL CONTAIN IMPORTANT INFORMATION ABOUT OBSIDIAN ENERGY, BONTERRA AND THE OFFER.
Materials filed with the Canadian securities regulatory authorities will be available electronically without charge at www.sedar.com. Materials filed with the SEC will be available electronically without charge at the SEC's website at www.sec.gov
and the materials will be posted on the Obsidian Energy website at: www.obsidianenergy.com Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as
amended. Securities will not be offered, nor will deposits of securities be accepted from a person, in any State of the United States in which the offering of securities, or acceptance thereof, would not be in compliance with the laws of such
jurisdiction. Neither the SEC nor any securities commission of any State of the United States has (a) approved or disapproved of the Offer, (b) passed upon the merits or fairness of the Offer, or (c) passed upon the adequacy or accuracy of the
disclosure in this document. Any representation to the contrary is a criminal offense in the United States. For further details, refer to “Details on Intention to Make an Offer” at the end of this presentation. This presentation also
contains references to certain financial measures which do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore are considered non-generally accepted accounting practice
(“Non-GAAP”) measures. This presentation also includes various industry terms, oil and gas disclosure and forward looking-statements. For further details, refer to “Definitions and Industry Terms”, “Non-GAAP Measure
Advisory”, “Oil and Gas Information Advisory”, “Reserves Disclosure and Definitions Advisory” and “Forward-Looking Statements Advisory” at the end of this presentation. All references to $ or C$ in this news
release are to Canadian dollars and all references in this news release to $US are to U.S. dollars. All slides in this presentation should be read in conjunction with “Definitions and Industry Terms”, “Non-GAAP Measure
Advisory”, “Oil and Gas Information Advisory”, “Reserves Disclosure and Definitions Advisory” and “Forward-Looking Information Advisory”. 2
Obsidian Energy Corporate Overview Market Summary OBE (TSX)/ OBELF Ticker
Symbol (OTCQX) Peace River MM Shares Outstanding 73 2,132 boe/d Q2 2020 Cold flow heavy oil MM Market Capitalization $42 Manage base production MM Net Debt $496 MM Enterprise Value $538 Corporate Summary Cardium mmboe Reserves (2P YE 2019) 126
22,456 boe/d Q2 2020 years RLI (2P YE 2019) 14 Light oil conventional development % PDP Decline (YE 2019) 17 Manufacturing model for extensive, repeatable MM Tax Pools (YE 2019) $2,547 inventory. Advantaged shallow decline base Guidance Period H2
2020 boe/d Production 24,000 – 24,500 25,000 – 25,500 MM Capital Expenditures $10 $51 MM Decommissioning $3 $11 Alberta Viking 880 boe/d Q2 2020 $/boe Operating Costs $12.00 – $12.50 $11.10 – 11.50 Higher GOR oil play General
& Manage base production $/boe $1.50 – $1.65 $1.50 – 1.60 Administrative *Legacy Asset Production of 405 boe/d Q2 2020 Source: Company Filings, FactSet. 3 3 Note: Market Cap based on 9/4/2020 pricing.Obsidian Energy Corporate
Overview Market Summary OBE (TSX)/ OBELF Ticker Symbol (OTCQX) Peace River MM Shares Outstanding 73 2,132 boe/d Q2 2020 Cold flow heavy oil MM Market Capitalization $42 Manage base production MM Net Debt $496 MM Enterprise Value $538 Corporate
Summary Cardium mmboe Reserves (2P YE 2019) 126 22,456 boe/d Q2 2020 years RLI (2P YE 2019) 14 Light oil conventional development % PDP Decline (YE 2019) 17 Manufacturing model for extensive, repeatable MM Tax Pools (YE 2019) $2,547 inventory.
Advantaged shallow decline base Guidance Period H2 2020 boe/d Production 24,000 – 24,500 25,000 – 25,500 MM Capital Expenditures $10 $51 MM Decommissioning $3 $11 Alberta Viking 880 boe/d Q2 2020 $/boe Operating Costs $12.00 –
$12.50 $11.10 – 11.50 Higher GOR oil play General & Manage base production $/boe $1.50 – $1.65 $1.50 – 1.60 Administrative *Legacy Asset Production of 405 boe/d Q2 2020 Source: Company Filings, FactSet. 3 3 Note: Market Cap
based on 9/4/2020 pricing.
Key Characteristics of Obsidian Energy & Bonterra Combination The newly
combined “Cardium Champion” will deliver significantly superior operational and financial performance than either company could achieve on a standalone basis Improved Base Exceptional Equity Production Through Appreciation Optimization
Potential Aligned Decommissioning Lower $US WTI Liability Reduction Break Even Price Strategy Pro Forma Cardium Champion Cash Flow Acceleration Lower G&A Through Optimized Costs/BOE Development Lower Operating Lower Capital Costs Costs/BOE
Through Increased Achieved via Scale Operational Synergies 4 4Key Characteristics of Obsidian Energy & Bonterra Combination The newly combined “Cardium Champion” will deliver significantly superior operational and financial
performance than either company could achieve on a standalone basis Improved Base Exceptional Equity Production Through Appreciation Optimization Potential Aligned Decommissioning Lower $US WTI Liability Reduction Break Even Price Strategy Pro Forma
Cardium Champion Cash Flow Acceleration Lower G&A Through Optimized Costs/BOE Development Lower Operating Lower Capital Costs Costs/BOE Through Increased Achieved via Scale Operational Synergies 4 4
Transaction Considerations ✓ WTI 2021 break-even price of ~ US$37/bbl
to keep production flat while maintaining Creates the best-in class, free-cash flow neutrality with further improvement in subsequent years due to lower Cardium focused light-oil interest expense from debt repayment and ongoing cost reductions
Cardium weighted operator with ✓ Positions the Pro Forma Company for further financially accretive bolt-on Champion acquisitions as consolidation is poised to accelerate increased resiliency to ✓ Results in significant equity
appreciation to both Bonterra and Obsidian Energy commodity price volatility shareholders at various commodity price scenarios ✓ Pro Forma Company achieves a far superior financial and operational outcome than Significant accretion across all
either Bonterra or Obsidian Energy can achieve on a stand-alone basis financial metrics driven by cost ✓ Comparable returns to Bonterra shareholders are very unlikely to be available Significantly savings and other synergies; through any
other path forward, including through a BDC financing Significantly extends Bonterra’s cash tax horizon due to Obsidian Energy’s tax pool capital will be focused into ✓ Accretive position higher-return Obsidian Energy ✓
Allows for the reintroduction of a dividend to the shareholders once target leverage Willesden Green inventory ratio achieved The exchange ratio provides ✓ Bonterra currently trades at a premium to the comparables on both cash flow and
Bonterra shareholders with a flowing barrel metrics despite its over levered balance sheet and imminent bank significant premium versus what extension maturity Premium the contribution analysis ✓ The 2.0x exchange ratio is a premium to the
level implied by contribution analysis ✓ Bonterra shareholders will enjoy substantial participation in the combined equity between the companies Value appreciation suggests, and allows substantial ✓ The equity appreciation available to
Bonterra shareholders from a combination with participation in future combined Obsidian Energy is substantially better than stand-alone Bonterra returns returns ✓ The transaction significantly increases the likelihood that the Pro Forma
Company can access alternative capital sources to diversify the funding mix and reduce A transaction with Obsidian reliance on bank capital with semi-annual borrowing-base redeterminations Energy yields a significantly Best ✓ Bonterra’s
pursuit of BDC financing is uncertain as the current term sheet is non- superior financial result when Alternative binding and current bank syndicate members need to commit to 10% of the BDC compared to Bonterra’s commitment amount, as well as
the implementation of an inter-creditor agreement for strategy of pursuing ✓ BDC does not address Bonterra’s core leverage issue; BDC financing cannot be used incremental debt financing from Shareholders to reduce current bank debt; the
combination with Obsidian Energy provides a clear BDC path to reducing leverage through increased free cash flow, to the benefit of shareholders 5 5Transaction Considerations ✓ WTI 2021 break-even price of ~ US$37/bbl to keep production flat
while maintaining Creates the best-in class, free-cash flow neutrality with further improvement in subsequent years due to lower Cardium focused light-oil interest expense from debt repayment and ongoing cost reductions Cardium weighted operator
with ✓ Positions the Pro Forma Company for further financially accretive bolt-on Champion acquisitions as consolidation is poised to accelerate increased resiliency to ✓ Results in significant equity appreciation to both Bonterra and
Obsidian Energy commodity price volatility shareholders at various commodity price scenarios ✓ Pro Forma Company achieves a far superior financial and operational outcome than Significant accretion across all either Bonterra or Obsidian
Energy can achieve on a stand-alone basis financial metrics driven by cost ✓ Comparable returns to Bonterra shareholders are very unlikely to be available Significantly savings and other synergies; through any other path forward, including
through a BDC financing Significantly extends Bonterra’s cash tax horizon due to Obsidian Energy’s tax pool capital will be focused into ✓ Accretive position higher-return Obsidian Energy ✓ Allows for the reintroduction of
a dividend to the shareholders once target leverage Willesden Green inventory ratio achieved The exchange ratio provides ✓ Bonterra currently trades at a premium to the comparables on both cash flow and Bonterra shareholders with a flowing
barrel metrics despite its over levered balance sheet and imminent bank significant premium versus what extension maturity Premium the contribution analysis ✓ The 2.0x exchange ratio is a premium to the level implied by contribution analysis
✓ Bonterra shareholders will enjoy substantial participation in the combined equity between the companies Value appreciation suggests, and allows substantial ✓ The equity appreciation available to Bonterra shareholders from a
combination with participation in future combined Obsidian Energy is substantially better than stand-alone Bonterra returns returns ✓ The transaction significantly increases the likelihood that the Pro Forma Company can access alternative
capital sources to diversify the funding mix and reduce A transaction with Obsidian reliance on bank capital with semi-annual borrowing-base redeterminations Energy yields a significantly Best ✓ Bonterra’s pursuit of BDC financing is
uncertain as the current term sheet is non- superior financial result when Alternative binding and current bank syndicate members need to commit to 10% of the BDC compared to Bonterra’s commitment amount, as well as the implementation of an
inter-creditor agreement for strategy of pursuing ✓ BDC does not address Bonterra’s core leverage issue; BDC financing cannot be used incremental debt financing from Shareholders to reduce current bank debt; the combination with
Obsidian Energy provides a clear BDC path to reducing leverage through increased free cash flow, to the benefit of shareholders 5 5
The Cardium Champion – At a Glance Obsidian Energy is proposing an
exchange of 2.0 OBE shares for every 1 share of BNE; Bonterra shareholders will own 48% of the Pro Forma Company’s equity Corporate Summary Obsidian Bonterra Combined MM Shares Outstanding 73.0 33.4 x 2 = 66.8 139.8 $MM Net Debt @ 6/30/2020
$496 $299 $795 Funds Flow from Operations $MM $145 $65 $210 (1) Last Twelve Months (“LTM”) Net Debt / FFO (LTM) X 3.4x 4.6x 3.8x Reserves (PDP YE 2019) MMBoe 65 38 103 MMBoe Reserves (2P YE 2019) 126 101 227 (2) Years RLI (2P YE 2019) 14
21 16 (2) PDP Decline (YE 2019) % 17% 21% 18% Production (H1 2020) Boe/d 26,482 11,108 37,590 % Liquids % 67 66 67 $MM Tax Pools (YE19) $2,547 $349 $2,896 Years Taxable Horizon >>5 Years ~2022 >>5 Years Source: Company Filings. th th (1)
LTM – June 30 2019 to June 30 2020 (2) Per Bonterra May 2020 Corporate Presentation. 6The Cardium Champion – At a Glance Obsidian Energy is proposing an exchange of 2.0 OBE shares for every 1 share of BNE; Bonterra shareholders will own
48% of the Pro Forma Company’s equity Corporate Summary Obsidian Bonterra Combined MM Shares Outstanding 73.0 33.4 x 2 = 66.8 139.8 $MM Net Debt @ 6/30/2020 $496 $299 $795 Funds Flow from Operations $MM $145 $65 $210 (1) Last Twelve Months
(“LTM”) Net Debt / FFO (LTM) X 3.4x 4.6x 3.8x Reserves (PDP YE 2019) MMBoe 65 38 103 MMBoe Reserves (2P YE 2019) 126 101 227 (2) Years RLI (2P YE 2019) 14 21 16 (2) PDP Decline (YE 2019) % 17% 21% 18% Production (H1 2020) Boe/d 26,482
11,108 37,590 % Liquids % 67 66 67 $MM Tax Pools (YE19) $2,547 $349 $2,896 Years Taxable Horizon >>5 Years ~2022 >>5 Years Source: Company Filings. th th (1) LTM – June 30 2019 to June 30 2020 (2) Per Bonterra May 2020 Corporate
Presentation. 6
Obsidian Energy Strategic Priorities A new Senior Management Team has
overseen transformational improvement in operational and financial performance with a Cardium focused strategy H2 H2 Senior Management Team 2018 2019 Superior Shareholder Return Stephen Loukas Interim President and CEO Peter Scott SVP, CFO Generate
excess free cash flow while Create scale and SVP, Development & Drive per share Aaron Smith holding production decrease cost Operations growth via organic flat and maintain structure via Cardium development and Gary Sykes VP, Commercial growth
optionality at consolidation debt pay down increased commodity strategy VP Legal, General Counsel prices Mark Hawkins & Corporate Secretary (1) Total Cardium Production Total Cash Costs per BOE 25,000 $19.52 $18.21 20,000 34% $13.76 35% 37%
15,000 10% 10% 11% 10,000 56% 55% 5,000 52% 0 FY 2018 FY 2019 H1 2020 2018 2019 H1 2020 Oil (bbl/d) NGL (bbl/d) Gas (boe/d) 7 (1) Includes net G&A, Opex and transport costs. Average Daily ProductionObsidian Energy Strategic Priorities A new
Senior Management Team has overseen transformational improvement in operational and financial performance with a Cardium focused strategy H2 H2 Senior Management Team 2018 2019 Superior Shareholder Return Stephen Loukas Interim President and CEO
Peter Scott SVP, CFO Generate excess free cash flow while Create scale and SVP, Development & Drive per share Aaron Smith holding production decrease cost Operations growth via organic flat and maintain structure via Cardium development and Gary
Sykes VP, Commercial growth optionality at consolidation debt pay down increased commodity strategy VP Legal, General Counsel prices Mark Hawkins & Corporate Secretary (1) Total Cardium Production Total Cash Costs per BOE 25,000 $19.52 $18.21
20,000 34% $13.76 35% 37% 15,000 10% 10% 11% 10,000 56% 55% 5,000 52% 0 FY 2018 FY 2019 H1 2020 2018 2019 H1 2020 Oil (bbl/d) NGL (bbl/d) Gas (boe/d) 7 (1) Includes net G&A, Opex and transport costs. Average Daily Production
Demonstrated Strong Track Record Obsidian Energy has demonstrated the
ability, over the last year, to reduce costs and rapidly adapt to the challenging environment (1) Change in Cash Costs Demonstrated Year Over Year (Through to Q2 2020) $2.00 $0.00 ($2.00) Obsidian Energy has proven the ability to ($4.00)
meaningfully lower its cost structure… ($6.00) ($8.00) ($10.00) Obsidian Peer Bonterra Peer Peer Peer Peer Peer (2) H1 2020 Operating Netback of Public Cardium Operators ($/boe) $20.00 ... which has led to top-tier netbacks $15.00 $10.00 $5.00
$0.00 Peer Peer Obsidian Peer Bonterra Peer Peer Peer Source: Company Filings. (1) Cash costs shown as sum of operating costs, transport costs, and G&A on a $/boe basis. Change shown from Q2 2019 to Q2 2020. Obsidian Energy G&A includes the
impact of restructuring costs. 8 (2) Operating netback for the 6 months ended 6/30/2020 reported for the whole company, inclusive of hedging gains and losses. ($/boe) ($/boe)Demonstrated Strong Track Record Obsidian Energy has demonstrated the
ability, over the last year, to reduce costs and rapidly adapt to the challenging environment (1) Change in Cash Costs Demonstrated Year Over Year (Through to Q2 2020) $2.00 $0.00 ($2.00) Obsidian Energy has proven the ability to ($4.00)
meaningfully lower its cost structure… ($6.00) ($8.00) ($10.00) Obsidian Peer Bonterra Peer Peer Peer Peer Peer (2) H1 2020 Operating Netback of Public Cardium Operators ($/boe) $20.00 ... which has led to top-tier netbacks $15.00 $10.00 $5.00
$0.00 Peer Peer Obsidian Peer Bonterra Peer Peer Peer Source: Company Filings. (1) Cash costs shown as sum of operating costs, transport costs, and G&A on a $/boe basis. Change shown from Q2 2019 to Q2 2020. Obsidian Energy G&A includes the
impact of restructuring costs. 8 (2) Operating netback for the 6 months ended 6/30/2020 reported for the whole company, inclusive of hedging gains and losses. ($/boe) ($/boe)
Potential to Realize Meaningful Synergies Synergies achieved from G&A
and operating expense reductions, capital cost savings, and reinvesting cash flow into Obsidian Energy’s higher-return Willesden Green inventory Synergies Summary ~$100MM Over First Three Years $100 FCF from Optimized Development $75 ~$50MM In
Year One G&A / Other $50 FCF from Optimized Opex Reductions Development $25 G&A / Other Capex Savings Opex Reductions Capex Savings $0 Year One Over Three Years 9 9 Note: Based on US$50/bbl WTI and C$1.95/MMBtu AECO. ($MM)Potential to
Realize Meaningful Synergies Synergies achieved from G&A and operating expense reductions, capital cost savings, and reinvesting cash flow into Obsidian Energy’s higher-return Willesden Green inventory Synergies Summary ~$100MM Over First
Three Years $100 FCF from Optimized Development $75 ~$50MM In Year One G&A / Other $50 FCF from Optimized Opex Reductions Development $25 G&A / Other Capex Savings Opex Reductions Capex Savings $0 Year One Over Three Years 9 9 Note: Based on
US$50/bbl WTI and C$1.95/MMBtu AECO. ($MM)
Significantly Improved Financial Resilience The Pro Forma Company will be a
best-in-class company on break-even costs, and meaningfully more resilient to a downturn in commodity prices US$ WTI/bbl Projected Breakeven Price Future improvement in breakeven from lower $42 interest and other cost $40 reductions $37 2021 BNE
Projected 2021 OBE Projected 2021 Pro Forma Projected 2022+ Potential The Pro Forma Company will dramatically improve go forward US$ WTI/bbl breakeven costs due to the realization of significant synergies and improved cash flow generation Note:
Breakeven WTI price defined as US$ WTI/bbl price required to fund sustaining capital to maintain flat production within operating cash flow. 10 10 Note: WTI/bbl breakeven forecast assumes US$4.00/bbl Edmonton Par differentials, US$14.00/bbl WCS
differentials, US$1.00/MMBtu AECO differentials and 1.36x CAD/USD FX. Significantly Improved Financial Resilience The Pro Forma Company will be a best-in-class company on break-even costs, and meaningfully more resilient to a downturn in commodity
prices US$ WTI/bbl Projected Breakeven Price Future improvement in breakeven from lower $42 interest and other cost $40 reductions $37 2021 BNE Projected 2021 OBE Projected 2021 Pro Forma Projected 2022+ Potential The Pro Forma Company will
dramatically improve go forward US$ WTI/bbl breakeven costs due to the realization of significant synergies and improved cash flow generation Note: Breakeven WTI price defined as US$ WTI/bbl price required to fund sustaining capital to maintain flat
production within operating cash flow. 10 10 Note: WTI/bbl breakeven forecast assumes US$4.00/bbl Edmonton Par differentials, US$14.00/bbl WCS differentials, US$1.00/MMBtu AECO differentials and 1.36x CAD/USD FX.
High Grade Development to Top Assets Our business plan will use the free
cash flow from low decline Pembina assets to reduce debt, while directing the combined development capital to Willesden Green (1) 2021 - 2024 Capex by Company and Asset Dominant Combined Cardium Footprint OBE BNE Assets Assets Central 85% 15%
Pembina Willesden Green OBE Assets Contribute 85% of Capital Projects Developed in Priority to Pembina Over the Next 4 Years East Pembina Greater than 740 Economic Drilling Locations: West Inventory by Company and Asset Region Pembina (>20% BT
IRR at US$50 WTI/bbl) OBE Willesden Green OBE OBE Other Pembina East Crimson Crimson Lake BNE Pembina BNE Willesden Green #1 Cardium Producer and the Logical Consolidator ~60% of Pro Forma Company economic inventory from OBE assets Source: geoSCOUT.
11 11 (1) Forecast development plan per Obsidian Energy. High Grade Development to Top Assets Our business plan will use the free cash flow from low decline Pembina assets to reduce debt, while directing the combined development capital to Willesden
Green (1) 2021 - 2024 Capex by Company and Asset Dominant Combined Cardium Footprint OBE BNE Assets Assets Central 85% 15% Pembina Willesden Green OBE Assets Contribute 85% of Capital Projects Developed in Priority to Pembina Over the Next 4 Years
East Pembina Greater than 740 Economic Drilling Locations: West Inventory by Company and Asset Region Pembina (>20% BT IRR at US$50 WTI/bbl) OBE Willesden Green OBE OBE Other Pembina East Crimson Crimson Lake BNE Pembina BNE Willesden Green #1
Cardium Producer and the Logical Consolidator ~60% of Pro Forma Company economic inventory from OBE assets Source: geoSCOUT. 11 11 (1) Forecast development plan per Obsidian Energy.
Pro Forma Company Production Performance The Pro Forma Company will focus
capital into Obsidian Energy’s higher return drilling inventory resulting in improved financial metrics (1) PDP and Development Production at US$50 WTI/bbl • Obsidian Energy has a OBE Base BNE Base superior portfolio of high OBE
Development BNE Development netback/high return Cardium 50,000 drilling inventory • These would be prioritized for capital in the Pro Forma BNE Development 40,000 Company • Increased free cash flow generation in 2021 – 2024 30,000
OBE Development allows reinvestment to moderately increase production and repay debt 20,000 • The result is improved financial metrics across all BNE Base measures 10,000 OBE Base 0 2021 2022 2023 2024 12 12 (1) Projections are based on US$50
WTI/bbl and C$1.95/MMBtu AECO price deck. (boe/d)Pro Forma Company Production Performance The Pro Forma Company will focus capital into Obsidian Energy’s higher return drilling inventory resulting in improved financial metrics (1) PDP and
Development Production at US$50 WTI/bbl • Obsidian Energy has a OBE Base BNE Base superior portfolio of high OBE Development BNE Development netback/high return Cardium 50,000 drilling inventory • These would be prioritized for capital
in the Pro Forma BNE Development 40,000 Company • Increased free cash flow generation in 2021 – 2024 30,000 OBE Development allows reinvestment to moderately increase production and repay debt 20,000 • The result is improved
financial metrics across all BNE Base measures 10,000 OBE Base 0 2021 2022 2023 2024 12 12 (1) Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (boe/d)
Illustrative Business Model Outlook The Pro Forma Company will have a
substantially improved ability to maintain production while generating excess free cash flow to pay down debt resulting in significantly improved credit metrics (1) Pro Forma Company Outlook at US$50 WTI/bbl Production Cash Flow and Capital
Expenditures Oil and Liquids Natural Gas Cash Flow Capex $350 40,000 $300 $250 30,000 $200 20,000 $150 $100 10,000 $50 $0 0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and Leverage Free Cash Flow Available for Debt Repay Net Debt (LHS) Ending
Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 3.0x $350 $700 $300 2.5x $600 $250 2.0x $500 $200 $400 1.5x $150 $300 1.0x $100 $200 0.5x $50 $100 $0 0.0x $0 2021 2022 2023 2024 2021 2022 2023 2024 13 13 (1) Projections are
based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (boe/d) ($MM) (x) ($MM) ($MM)Illustrative Business Model Outlook The Pro Forma Company will have a substantially improved ability to maintain production while generating excess free cash flow
to pay down debt resulting in significantly improved credit metrics (1) Pro Forma Company Outlook at US$50 WTI/bbl Production Cash Flow and Capital Expenditures Oil and Liquids Natural Gas Cash Flow Capex $350 40,000 $300 $250 30,000 $200 20,000
$150 $100 10,000 $50 $0 0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and Leverage Free Cash Flow Available for Debt Repay Net Debt (LHS) Ending Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 3.0x $350 $700 $300 2.5x
$600 $250 2.0x $500 $200 $400 1.5x $150 $300 1.0x $100 $200 0.5x $50 $100 $0 0.0x $0 2021 2022 2023 2024 2021 2022 2023 2024 13 13 (1) Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (boe/d) ($MM) (x) ($MM) ($MM)
Financial and Operational Metrics Contribution Key financial and
operational metrics demonstrate a 2.0x exchange ratio is highly compelling to Bonterra Shareholders Contribution Analysis at US$50 WTI/bbl Operational / Combined Metrics (1) Financial Metric Implied Contribution (2) Obsidian Bonterra Combined
Synergies Pro Forma OBE Combination Model Forecast (US$50 WTI / bbl) 2021E Production 25,000 11,000 69% 31% 36,000 919 36,919 2022E Production 27,000 11,500 70% 30% 38,500 1,070 39,570 2021E Liquids Production 17,000 7,500 69% 31% 24,500 733 25,233
70% 30% 2022E Liquids Production 18,500 8,000 26,500 1,113 27,613 2021E EBITDA $160 $80 $240 $32 $272 67% 33% 2022E EBITDA $200 $90 $290 $29 $319 69% 31% 2021E ULFCF $20 $10 67% 33% $30 $40 $70 2022E ULFCF $65 $20 $85 $26 $111 76% 24% YE 2019
Reported Reserves PDP Reserve Volumes 65 38 63% 37% 103 NA 103 2P Reserve Volumes 126 101 55% 45% 227 NA 227 LTM Statistics - Unlevered (Unhedged) LTM Production 26,277 11,685 37,962 NA 69% 31% 37,962 LTM Liquids Production 17,621 7,788 69% 31%
25,409 NA 25,409 67% 33% LTM Unhedged EBITDA $162 $80 $242 NA $242 LTM Unhedged UL FCF $60 $34 64% 36% $94 NA $94 Capitalization - Assuming 2.00x Exchange Ratio (3) Equity Value $42 $38 52% 48% $80 NA $80 (3) Net Debt $496 $299 62% 38% $795 NA $795
(3) Enterprise Value $538 $337 $874 NA $874 61% 39% (3) Exchange ratio of 2.0x proposed by Obsidian Energy results in an equity value split of 52% to OBE and 48% to BNE Note: Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck.
(1) Implied contribution represents each company’s proportionate amount of key metric. For example, Obsidian Energy contribution based on 2021E production of 25,000 boe/d divided by combined 36,000 boe/d. (2) Pro Forma Company assumes annual
synergies outlined earlier in this presentation. 14 14 (3) Based on balance sheet and shares outstanding per company financials as at 6/30/2020. Based on OBE closing share price of $0.57/share as at 9/4/2020.Financial and Operational Metrics
Contribution Key financial and operational metrics demonstrate a 2.0x exchange ratio is highly compelling to Bonterra Shareholders Contribution Analysis at US$50 WTI/bbl Operational / Combined Metrics (1) Financial Metric Implied Contribution (2)
Obsidian Bonterra Combined Synergies Pro Forma OBE Combination Model Forecast (US$50 WTI / bbl) 2021E Production 25,000 11,000 69% 31% 36,000 919 36,919 2022E Production 27,000 11,500 70% 30% 38,500 1,070 39,570 2021E Liquids Production 17,000 7,500
69% 31% 24,500 733 25,233 70% 30% 2022E Liquids Production 18,500 8,000 26,500 1,113 27,613 2021E EBITDA $160 $80 $240 $32 $272 67% 33% 2022E EBITDA $200 $90 $290 $29 $319 69% 31% 2021E ULFCF $20 $10 67% 33% $30 $40 $70 2022E ULFCF $65 $20 $85 $26
$111 76% 24% YE 2019 Reported Reserves PDP Reserve Volumes 65 38 63% 37% 103 NA 103 2P Reserve Volumes 126 101 55% 45% 227 NA 227 LTM Statistics - Unlevered (Unhedged) LTM Production 26,277 11,685 37,962 NA 69% 31% 37,962 LTM Liquids Production
17,621 7,788 69% 31% 25,409 NA 25,409 67% 33% LTM Unhedged EBITDA $162 $80 $242 NA $242 LTM Unhedged UL FCF $60 $34 64% 36% $94 NA $94 Capitalization - Assuming 2.00x Exchange Ratio (3) Equity Value $42 $38 52% 48% $80 NA $80 (3) Net Debt $496 $299
62% 38% $795 NA $795 (3) Enterprise Value $538 $337 $874 NA $874 61% 39% (3) Exchange ratio of 2.0x proposed by Obsidian Energy results in an equity value split of 52% to OBE and 48% to BNE Note: Projections are based on US$50 WTI/bbl and
C$1.95/MMBtu AECO price deck. (1) Implied contribution represents each company’s proportionate amount of key metric. For example, Obsidian Energy contribution based on 2021E production of 25,000 boe/d divided by combined 36,000 boe/d. (2) Pro
Forma Company assumes annual synergies outlined earlier in this presentation. 14 14 (3) Based on balance sheet and shares outstanding per company financials as at 6/30/2020. Based on OBE closing share price of $0.57/share as at 9/4/2020.
Public Trading Comparables Bonterra trades at an unsustainable premium to
relevant comparables across all metrics Based on FactSet Median Consensus Estimates Capitalization As at September 4, 2020 Share Price EV / 2020E EV / 2021E EV / 2020E EV / 2021E Company Name (9/4/2020) Market Cap Enterprise Value EBITDA EBITDA
Production Production Baytex $0.64 $365 $2,256 5.3x 4.9x $28,190 $29,810 Cardinal $0.53 $60 $282 5.5x 3.8x $15,284 $15,158 Crescent Point $2.09 $1,117 $3,503 3.8x 4.7x $29,076 $31,276 Gear $0.18 $39 $118 3.5x 4.5x $22,630 $22,193 Surge $0.28 $96
$444 5.4x 5.0x $24,683 $26,016 TORC $1.64 $379 $752 6.2x 4.4x $29,082 $29,960 Tamarack Valley $0.83 $193 $415 3.2x 3.1x $19,530 $19,568 Vermilion $4.64 $761 $2,965 5.4x 4.3x $30,762 $31,577 Whitecap $2.58 $1,070 $2,392 5.2x 4.7x $35,704 $29,173
Yangarra $0.57 $49 $251 4.8x 3.5x $23,708 $24,285 Peer Mean 4.8x 4.3x $25,865 $25,902 Peer Median 5.2x 4.4x $26,436 $27,594 (2) (2) (1) (2) (2) Bonterra $1.35 $45 $344 6.7x 5.0x $31,321 $31,253 (2) (1) (2) (2) (2) Obsidian $0.57 $42 $538 5.0x 4.6x
$21,462 $23,375 Peer Mean Including BNE and OBE 5.0x 4.4x $25,953 $26,137 Peer Median Including BNE and OBE 5.2x 4.5x $26,436 $27,594 Consensus estimates support a 4.5x EV / 2021 EBITDA multiple Source: FactSet, Company Filings as at 6/30/2020.
Note: Pricing and estimates as at 9/4/2020. (1) Obsidian Energy and Bonterra share price as at 9/4/2020. (2) Obsidian Energy and Bonterra estimates prior to the expression of interest of 8/28/2020. 15 15Public Trading Comparables Bonterra trades at
an unsustainable premium to relevant comparables across all metrics Based on FactSet Median Consensus Estimates Capitalization As at September 4, 2020 Share Price EV / 2020E EV / 2021E EV / 2020E EV / 2021E Company Name (9/4/2020) Market Cap
Enterprise Value EBITDA EBITDA Production Production Baytex $0.64 $365 $2,256 5.3x 4.9x $28,190 $29,810 Cardinal $0.53 $60 $282 5.5x 3.8x $15,284 $15,158 Crescent Point $2.09 $1,117 $3,503 3.8x 4.7x $29,076 $31,276 Gear $0.18 $39 $118 3.5x 4.5x
$22,630 $22,193 Surge $0.28 $96 $444 5.4x 5.0x $24,683 $26,016 TORC $1.64 $379 $752 6.2x 4.4x $29,082 $29,960 Tamarack Valley $0.83 $193 $415 3.2x 3.1x $19,530 $19,568 Vermilion $4.64 $761 $2,965 5.4x 4.3x $30,762 $31,577 Whitecap $2.58 $1,070
$2,392 5.2x 4.7x $35,704 $29,173 Yangarra $0.57 $49 $251 4.8x 3.5x $23,708 $24,285 Peer Mean 4.8x 4.3x $25,865 $25,902 Peer Median 5.2x 4.4x $26,436 $27,594 (2) (2) (1) (2) (2) Bonterra $1.35 $45 $344 6.7x 5.0x $31,321 $31,253 (2) (1) (2) (2) (2)
Obsidian $0.57 $42 $538 5.0x 4.6x $21,462 $23,375 Peer Mean Including BNE and OBE 5.0x 4.4x $25,953 $26,137 Peer Median Including BNE and OBE 5.2x 4.5x $26,436 $27,594 Consensus estimates support a 4.5x EV / 2021 EBITDA multiple Source: FactSet,
Company Filings as at 6/30/2020. Note: Pricing and estimates as at 9/4/2020. (1) Obsidian Energy and Bonterra share price as at 9/4/2020. (2) Obsidian Energy and Bonterra estimates prior to the expression of interest of 8/28/2020. 15 15
Bonterra Outlook Meaningfully Improved Bonterra Standalone BDC financing
would fail to structurally improve Bonterra; a transaction Bonterra w/ BDC with Obsidian Energy creates a Cardium Champion with improved metrics Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$50 WTI/bbl 2.0x 1.0x
0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 1,000 4.0x >1.7x Increase for Bonterra Shareholders 750 3.0x 500 2.0x >1x Debt Multiple Decrease for Bonterra Shareholders 250 1.0x 0 0.0x 2021 2022 2023 2024
2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per Share at 4.5x EV/EBITDA $6.00 $18.00 +1.8x Increase 2x to 3x Increase to Projected $15.00 for Bonterra Shareholders Bonterra Equity Value per Share $4.00 $12.00
$9.00 $2.00 $6.00 $3.00 $0.00 $0.00 2021 2022 2023 2024 2021 2022 2023 2024 (1) Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted
at the Pro Forma Company equity value per share at 4.5x EV/EBITDA. (3) Assumes exchange ratio of 2.0x Obsidian Energy shares per Bonterra share. 16 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations.
($/sh) (boe/d per MM Shares) (x) ($/sh) (x)Bonterra Outlook Meaningfully Improved Bonterra Standalone BDC financing would fail to structurally improve Bonterra; a transaction Bonterra w/ BDC with Obsidian Energy creates a Cardium Champion with
improved metrics Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$50 WTI/bbl 2.0x 1.0x 0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 1,000 4.0x >1.7x Increase for Bonterra
Shareholders 750 3.0x 500 2.0x >1x Debt Multiple Decrease for Bonterra Shareholders 250 1.0x 0 0.0x 2021 2022 2023 2024 2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per Share at 4.5x EV/EBITDA $6.00 $18.00
+1.8x Increase 2x to 3x Increase to Projected $15.00 for Bonterra Shareholders Bonterra Equity Value per Share $4.00 $12.00 $9.00 $2.00 $6.00 $3.00 $0.00 $0.00 2021 2022 2023 2024 2021 2022 2023 2024 (1) Projections are based on US$50 WTI/bbl and
C$1.95/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted at the Pro Forma Company equity value per share at 4.5x EV/EBITDA. (3) Assumes exchange ratio of 2.0x Obsidian Energy shares
per Bonterra share. 16 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations. ($/sh) (boe/d per MM Shares) (x) ($/sh) (x)
Accretive to Bonterra Shareholders The proposed transaction significantly
improves the financial position of Bonterra shareholders versus all standalone options (1) Financial Highlights at US$50 WTI/bbl (2) (3) Unhedged Funds Flow per Share (Bonterra Perspective) Senior Debt to LTM Unhedged EBITDA >120% Increase to
Bonterra FFO/Share >45% De-leveraging to Bonterra by by 2022E (at US$50 WTI/bbl) 2022E (at US$50 WTI/bbl) 3.7x 3.7x 3.7x $4.15 3.0x $3.44 2.6x $2.83 2.0x $2.12 $1.94 $1.87 (4) (4) Bonterra Pro Forma Bonterra Bonterra Pro Forma Pro Forma Bonterra
Pro Forma Bonterra Bonterra Pro Forma Pro Forma (5) (Incl. w/ BDC (Incl. w/ BDC (5) Synergies) Synergies) $50 WTI $50 WTI $50 WTI $50 WTI LTM 2021E 2022E LTM 2021E 2022E (1) Pro Forma Company assumes annual synergies outlined earlier in this
presentation. Gas pricing for 2021 and 2022 projections assumes C$1.95/MMBtu AECO. (2) Assumes exchange ratio of 2.0x Obsidian Energy shares per Bonterra share. (3) Total Debt as at 6/30/2020. LTM EBITDA calculated as 12 months ended 6/30/2020 funds
flow excluding financing expenses and realized gains from commodity risk management. Pro Forma Company based on OBE FFO. (4) Funds Flow based on 12 months ended 6/30/2020 and excluding realized gains from commodity risk management. Pro Forma Company
based on OBE FFO. 17 17 (5) LTM including synergies reflects forecast year one Opex and G&A / Other synergies. ($ per BNE Share) (x)Accretive to Bonterra Shareholders The proposed transaction significantly improves the financial position of
Bonterra shareholders versus all standalone options (1) Financial Highlights at US$50 WTI/bbl (2) (3) Unhedged Funds Flow per Share (Bonterra Perspective) Senior Debt to LTM Unhedged EBITDA >120% Increase to Bonterra FFO/Share >45%
De-leveraging to Bonterra by by 2022E (at US$50 WTI/bbl) 2022E (at US$50 WTI/bbl) 3.7x 3.7x 3.7x $4.15 3.0x $3.44 2.6x $2.83 2.0x $2.12 $1.94 $1.87 (4) (4) Bonterra Pro Forma Bonterra Bonterra Pro Forma Pro Forma Bonterra Pro Forma Bonterra Bonterra
Pro Forma Pro Forma (5) (Incl. w/ BDC (Incl. w/ BDC (5) Synergies) Synergies) $50 WTI $50 WTI $50 WTI $50 WTI LTM 2021E 2022E LTM 2021E 2022E (1) Pro Forma Company assumes annual synergies outlined earlier in this presentation. Gas pricing for 2021
and 2022 projections assumes C$1.95/MMBtu AECO. (2) Assumes exchange ratio of 2.0x Obsidian Energy shares per Bonterra share. (3) Total Debt as at 6/30/2020. LTM EBITDA calculated as 12 months ended 6/30/2020 funds flow excluding financing expenses
and realized gains from commodity risk management. Pro Forma Company based on OBE FFO. (4) Funds Flow based on 12 months ended 6/30/2020 and excluding realized gains from commodity risk management. Pro Forma Company based on OBE FFO. 17 17 (5) LTM
including synergies reflects forecast year one Opex and G&A / Other synergies. ($ per BNE Share) (x)
Potential for Meaningful BNE Share Price Increase At 4.5x Enterprise Value
/ 2021 EBITDA (US$50 WTI/bbl), consistent with peer multiples, Bonterra’s common shares would appreciate by ~375% to over $6.40 per share (1) Pro Forma Company Value Trading Summary - EV/EBITDA Multiple Sensitivity YE 2021 YE 2022 Assumed EV /
EBITDA x 4.5x 4.5x Pro Forma Company EBITDA C$MM $272 $319 Illustrative Enterprise Value C$MM $1,222 $1,435 Less: Pro Forma YE Net Debt C$MM ($773) ($706) Illustrative Implied Equity Value C$MM $448 $729 Pro Forma S/O MM 139.8 139.8 Illustrative
Implied Equity Value per Pro Forma Share C$/Sh $3.21 $5.21 Exchange Ratio x 2.00x 2.00x Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $6.41 $10.43 (2) % 375% 672% Implied PF Premium to Bonterra 9/4/2020 Share Price US$50
WTI/bbl (3) Implied PF Premium to Bonterra Standalone Equity Value per Share % 231% 239% (3) % 196% 155% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Note: Pro Forma Company forecast year end net debt includes unsecured
liability claims arising from Obsidian Energy obligations. (1) Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (2) Based on Bonterra closing price of $1.35/sh, as at 9/4/2020. 18 18 (3) Based on Bonterra standalone and
Bonterra with BDC forecast equity value per share at stated sensitized multiple and WTI/bbl Price.Potential for Meaningful BNE Share Price Increase At 4.5x Enterprise Value / 2021 EBITDA (US$50 WTI/bbl), consistent with peer multiples,
Bonterra’s common shares would appreciate by ~375% to over $6.40 per share (1) Pro Forma Company Value Trading Summary - EV/EBITDA Multiple Sensitivity YE 2021 YE 2022 Assumed EV / EBITDA x 4.5x 4.5x Pro Forma Company EBITDA C$MM $272 $319
Illustrative Enterprise Value C$MM $1,222 $1,435 Less: Pro Forma YE Net Debt C$MM ($773) ($706) Illustrative Implied Equity Value C$MM $448 $729 Pro Forma S/O MM 139.8 139.8 Illustrative Implied Equity Value per Pro Forma Share C$/Sh $3.21 $5.21
Exchange Ratio x 2.00x 2.00x Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $6.41 $10.43 (2) % 375% 672% Implied PF Premium to Bonterra 9/4/2020 Share Price US$50 WTI/bbl (3) Implied PF Premium to Bonterra Standalone
Equity Value per Share % 231% 239% (3) % 196% 155% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Note: Pro Forma Company forecast year end net debt includes unsecured liability claims arising from Obsidian Energy
obligations. (1) Projections are based on US$50 WTI/bbl and C$1.95/MMBtu AECO price deck. (2) Based on Bonterra closing price of $1.35/sh, as at 9/4/2020. 18 18 (3) Based on Bonterra standalone and Bonterra with BDC forecast equity value per share
at stated sensitized multiple and WTI/bbl Price.
Regaining Market Relevance Pro Forma Company is poised to deliver a
compelling overall investment thesis and to maximize value for all stakeholders of both Bonterra and Obsidian Energy Why Is This Transaction Compelling For Both Obsidian Energy and Bonterra? ✓ Top 20 WCSB oil producer with 35,000 boe/d of
oil-weighted production Cardium Champion: ✓ Ability to deploy combined capital spending towards best-return inventory at ✓ Willesden Green Enhanced Scale + Relevance ✓ Pro Forma Company is ~2x the size of any other
Cardium-focused firm ✓ At US$50 WTI/bbl and a 4.5x EV/EBITDA multiple, Bonterra’s common shares Significant Accretion to would appreciate by ~375% to ~C$6.40 per share (~$3.20/share OBE) ✓ Shareholders of BNE+OBE✓ Under
the same assumptions, Bonterra’s 2022E shares appreciate by over 670% to ~$10.40 per share (~$5.20/share OBE) ✓ Pro Forma Company base decline of ~18% Maintain Strengths: ✓ High netbacks of $23/boe 2022E based on US$50 WTI/bbl
and C$1.95/MMBtu Low Decline + High Netback ✓ AECO Light Oil ✓ Continue success in lowering operating costs and improving capital efficiency Stable Balance Sheet, ✓ Deleveraging for Bonterra (2x Debt/EBITDA by 2022E at US$50
WTI/bbl) Debt Reduction,✓ Extend debt maturities with support of lenders ✓ ✓ Improved ability to secure new capital to refinance existing bank debt Improved Access to Capital ✓ Synergies from lower G&A and operating
costs, improved capital efficiency, aligned decommissioning liability strategy, and lower interest costs over time Meaningful Synergies Drive ✓ Pro Forma Company will have up to $100 million greater free cash flow over ✓ Equity
Appreciation the first three years versus the stand-alone entities, creating a clear path to significant equity appreciation Obsidian Energy remains prepared to immediately engage in prompt discussions with Bonterra to negotiate mutually acceptable
definitive agreements to finalize a transaction 19 19Regaining Market Relevance Pro Forma Company is poised to deliver a compelling overall investment thesis and to maximize value for all stakeholders of both Bonterra and Obsidian Energy Why Is This
Transaction Compelling For Both Obsidian Energy and Bonterra? ✓ Top 20 WCSB oil producer with 35,000 boe/d of oil-weighted production Cardium Champion: ✓ Ability to deploy combined capital spending towards best-return inventory at
✓ Willesden Green Enhanced Scale + Relevance ✓ Pro Forma Company is ~2x the size of any other Cardium-focused firm ✓ At US$50 WTI/bbl and a 4.5x EV/EBITDA multiple, Bonterra’s common shares Significant Accretion to would
appreciate by ~375% to ~C$6.40 per share (~$3.20/share OBE) ✓ Shareholders of BNE+OBE✓ Under the same assumptions, Bonterra’s 2022E shares appreciate by over 670% to ~$10.40 per share (~$5.20/share OBE) ✓ Pro Forma Company
base decline of ~18% Maintain Strengths: ✓ High netbacks of $23/boe 2022E based on US$50 WTI/bbl and C$1.95/MMBtu Low Decline + High Netback ✓ AECO Light Oil ✓ Continue success in lowering operating costs and improving capital
efficiency Stable Balance Sheet, ✓ Deleveraging for Bonterra (2x Debt/EBITDA by 2022E at US$50 WTI/bbl) Debt Reduction,✓ Extend debt maturities with support of lenders ✓ ✓ Improved ability to secure new capital to
refinance existing bank debt Improved Access to Capital ✓ Synergies from lower G&A and operating costs, improved capital efficiency, aligned decommissioning liability strategy, and lower interest costs over time Meaningful Synergies Drive
✓ Pro Forma Company will have up to $100 million greater free cash flow over ✓ Equity Appreciation the first three years versus the stand-alone entities, creating a clear path to significant equity appreciation Obsidian Energy remains
prepared to immediately engage in prompt discussions with Bonterra to negotiate mutually acceptable definitive agreements to finalize a transaction 19 19
AppendixAppendix
Successfully Reducing Decommissioning Liability Commentary Demonstrated
Reduction in Well Abandonment Costs • Obsidian Energy has delivered a multi-year trend of Wainwright 2019 Cardium 2019 12 Wells 115 Wells decommissioning liability reduction - Q2 2020 $604 50% Decrease in $5.0 $0.8 35% million undiscounted
Per-Well Decrease Abandonment Costs Below D11 $4.0 • Obsidian Energy and Bonterra are participants of $0.6 the AER’s Area-Base Closure (ABC) program $3.0 $0.4 • 2020 ABC spend requirements suspended; $2.0 YTD 2020 spend fully
creditable to 2021 $0.2 requirements $1.0 • Obsidian Energy and our service providers have $0.0 $0.0 D11 XI Actuals been awarded nearly $12 million of grants and D11 XI Actuals allocation eligibility to date on our 3,492 Historical Reductions
in Abandonment Costs – applications within the Alberta Site Rehabilitation Obsidian Energy Undiscounted & Uninflated Program (ASRP) Decommissioning Liability • Shallow decline, long life, high netback, oil-weighted Pembina assets
extend ARO requirements over a long time period, stretching far into the future 76% decrease in Obsidian Energy ARO liability since 2015 • Many wells in the Cardium can be reactivated, recompleted, or repurposed for use in reservoir monitoring
• Actively engaged with EPAC and the AER to further improve closure regulations and programs Note: D11 refers to Alberta Energy Regulatory Directive 011. Note: XI refers to estimates by XI Technologies. 21 Note: Actuals per Obsidian Energy
2019 ARO activities and spending results. Well Abaondonment Costs ($MM) Well Abandonment Costs ($MM)Successfully Reducing Decommissioning Liability Commentary Demonstrated Reduction in Well Abandonment Costs • Obsidian Energy has delivered a
multi-year trend of Wainwright 2019 Cardium 2019 12 Wells 115 Wells decommissioning liability reduction - Q2 2020 $604 50% Decrease in $5.0 $0.8 35% million undiscounted Per-Well Decrease Abandonment Costs Below D11 $4.0 • Obsidian Energy and
Bonterra are participants of $0.6 the AER’s Area-Base Closure (ABC) program $3.0 $0.4 • 2020 ABC spend requirements suspended; $2.0 YTD 2020 spend fully creditable to 2021 $0.2 requirements $1.0 • Obsidian Energy and our service
providers have $0.0 $0.0 D11 XI Actuals been awarded nearly $12 million of grants and D11 XI Actuals allocation eligibility to date on our 3,492 Historical Reductions in Abandonment Costs – applications within the Alberta Site Rehabilitation
Obsidian Energy Undiscounted & Uninflated Program (ASRP) Decommissioning Liability • Shallow decline, long life, high netback, oil-weighted Pembina assets extend ARO requirements over a long time period, stretching far into the future 76%
decrease in Obsidian Energy ARO liability since 2015 • Many wells in the Cardium can be reactivated, recompleted, or repurposed for use in reservoir monitoring • Actively engaged with EPAC and the AER to further improve closure
regulations and programs Note: D11 refers to Alberta Energy Regulatory Directive 011. Note: XI refers to estimates by XI Technologies. 21 Note: Actuals per Obsidian Energy 2019 ARO activities and spending results. Well Abaondonment Costs ($MM) Well
Abandonment Costs ($MM)
Pro Forma Company Capitalization and Ownership The transaction results in
Bonterra shareholders owning approximately 48% of the Pro Forma Company Capitalization and Ownership Obsidian Bonterra Pro Forma $MM Bank Debt $420 $278 $698 Senior Secured Notes $MM $65 $0 $65 $MM Due to Related Party $0 $12 $12 Subordinated
Promissory Note $MM $0 $8 $8 $MM Total Debt $485 $297 $782 MM Basic Common Shares O/S 73 33 x Exchange Ratio 2.00x MM Pro Forma Common Shares O/S 73 67 140 % Pro Forma Equity Ownership 52% 48% Source: Company Filings as at 6/30/2020. Note: Balance
sheet and shares outstanding data per company financials as at 6/30/2020. 22 22 Note: Assumes exchange ratio of 2.0x.Pro Forma Company Capitalization and Ownership The transaction results in Bonterra shareholders owning approximately 48% of the Pro
Forma Company Capitalization and Ownership Obsidian Bonterra Pro Forma $MM Bank Debt $420 $278 $698 Senior Secured Notes $MM $65 $0 $65 $MM Due to Related Party $0 $12 $12 Subordinated Promissory Note $MM $0 $8 $8 $MM Total Debt $485 $297 $782 MM
Basic Common Shares O/S 73 33 x Exchange Ratio 2.00x MM Pro Forma Common Shares O/S 73 67 140 % Pro Forma Equity Ownership 52% 48% Source: Company Filings as at 6/30/2020. Note: Balance sheet and shares outstanding data per company financials as at
6/30/2020. 22 22 Note: Assumes exchange ratio of 2.0x.
Illustrative Business Model Outlook US$45 WTI/bbl (1) Pro Forma Company
Outlook at US$45 WTI/bbl Production Cash Flow and Capital Expenditures Oil and Liquids Natural Gas Cash Flow Capex $300 40,000 $250 30,000 $200 $150 20,000 $100 10,000 $50 0 $0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and Leverage Free Cash
Flow Available for Debt Repay Net Debt (LHS) Ending Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 3.5x $75 $700 3.0x $600 $50 2.5x $500 2.0x $400 $25 1.5x $300 1.0x $200 $0 2021 2022 2023 2024 0.5x $100 $0 0.0x ($25) 2021
2022 2023 2024 23 23 (1) Projections are based on US$45 WTI/bbl and C$2.50/MMBtu AECO price deck. ($MM) (boe/d) (x) ($MM) ($MM)Illustrative Business Model Outlook US$45 WTI/bbl (1) Pro Forma Company Outlook at US$45 WTI/bbl Production Cash Flow and
Capital Expenditures Oil and Liquids Natural Gas Cash Flow Capex $300 40,000 $250 30,000 $200 $150 20,000 $100 10,000 $50 0 $0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and Leverage Free Cash Flow Available for Debt Repay Net Debt (LHS)
Ending Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 3.5x $75 $700 3.0x $600 $50 2.5x $500 2.0x $400 $25 1.5x $300 1.0x $200 $0 2021 2022 2023 2024 0.5x $100 $0 0.0x ($25) 2021 2022 2023 2024 23 23 (1) Projections are
based on US$45 WTI/bbl and C$2.50/MMBtu AECO price deck. ($MM) (boe/d) (x) ($MM) ($MM)
Bonterra Outlook Meaningfully Improved at Bonterra Standalone US$45 WTI/bbl
Bonterra w/ BDC Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$45 WTI/bbl 2.0x 1.0x 0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 800 5.0x >3.4x Increase for Bonterra
Shareholders 700 4.0x 600 500 3.0x 400 2.0x 300 >0.6x Debt Multiple Decrease 200 for Bonterra Shareholders 1.0x 100 0 0.0x 2021 2022 2023 2024 2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per Share at 5.0x
EV/EBITDA $5.00 $14.00 3x to 5x Increase to Projected $12.00 Bonterra Equity Value per Share $4.00 $10.00 $3.00 $8.00 $6.00 $2.00 $4.00 +1.8x Increase $1.00 for Bonterra Shareholders $2.00 $0.00 $0.00 2021 2022 2023 2024 2021 2022 2023 2024 (1)
Projections are based on US$45 WTI/bblI and C$2.50/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted at the Pro Forma Company equity value per share at 5.0x EV/EBITDA. (3) Assumes
exchange ratio of 2.0x. 24 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations. ($/sh) (boe/d per MM Shares) (x) ($/sh) (x)Bonterra Outlook Meaningfully Improved at Bonterra Standalone US$45 WTI/bbl
Bonterra w/ BDC Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$45 WTI/bbl 2.0x 1.0x 0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 800 5.0x >3.4x Increase for Bonterra
Shareholders 700 4.0x 600 500 3.0x 400 2.0x 300 >0.6x Debt Multiple Decrease 200 for Bonterra Shareholders 1.0x 100 0 0.0x 2021 2022 2023 2024 2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per Share at 5.0x
EV/EBITDA $5.00 $14.00 3x to 5x Increase to Projected $12.00 Bonterra Equity Value per Share $4.00 $10.00 $3.00 $8.00 $6.00 $2.00 $4.00 +1.8x Increase $1.00 for Bonterra Shareholders $2.00 $0.00 $0.00 2021 2022 2023 2024 2021 2022 2023 2024 (1)
Projections are based on US$45 WTI/bblI and C$2.50/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted at the Pro Forma Company equity value per share at 5.0x EV/EBITDA. (3) Assumes
exchange ratio of 2.0x. 24 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations. ($/sh) (boe/d per MM Shares) (x) ($/sh) (x)
Illustrative Business Model Outlook US$55 WTI/bbl (1) Pro Forma Company
Outlook at US$55 WTI/bbl Production Cash Flow and Capital Expenditures Oil and Liquids Natural Gas Cash Flow Capex $450 40,000 $400 $350 30,000 $300 $250 20,000 $200 $150 10,000 $100 $50 0 $0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and
Leverage Free Cash Flow Available for Debt Repay Net Debt (LHS) Ending Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 2.5x $600 $700 2.0x $600 $450 $500 1.5x $400 $300 1.0x $300 $200 $150 0.5x $100 $0 0.0x $0 2021 2022
2023 2024 2021 2022 2023 2024 25 25 (1) Projections are based on US$55 WTI/bbl and C$1.95/MMBtu AECO price deck. ($MM) (boe/d) (x) ($MM) ($MM)Illustrative Business Model Outlook US$55 WTI/bbl (1) Pro Forma Company Outlook at US$55 WTI/bbl Production
Cash Flow and Capital Expenditures Oil and Liquids Natural Gas Cash Flow Capex $450 40,000 $400 $350 30,000 $300 $250 20,000 $200 $150 10,000 $100 $50 0 $0 2021 2022 2023 2024 2021 2022 2023 2024 Net Debt and Leverage Free Cash Flow Available for
Debt Repay Net Debt (LHS) Ending Net Debt / LTM EBITDA (RHS) Free Cash Flow Cumulative Free Cash Flow $800 2.5x $600 $700 2.0x $600 $450 $500 1.5x $400 $300 1.0x $300 $200 $150 0.5x $100 $0 0.0x $0 2021 2022 2023 2024 2021 2022 2023 2024 25 25 (1)
Projections are based on US$55 WTI/bbl and C$1.95/MMBtu AECO price deck. ($MM) (boe/d) (x) ($MM) ($MM)
Bonterra Outlook Meaningfully Improved at US$55 WTI/bbl Bonterra Standalone
Bonterra w/ BDC Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$55 WTI/bbl 2.0x 1.0x 0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 900 3.5x >1x Increase for Bonterra 800 3.0x
Shareholders 700 2.5x 600 2.0x 500 400 1.5x 300 1.0x 200 >0.5x Debt Multiple Decrease 0.5x 100 for Bonterra Shareholders 0 0.0x 2021 2022 2023 2024 2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per Share at
4.5x EV/EBITDA $7.00 $30.00 2x Increase to Projected $6.00 $25.00 Bonterra Equity Value per Share $5.00 $20.00 $4.00 $15.00 $3.00 $10.00 $2.00 +1.7x Increase $5.00 $1.00 for Bonterra Shareholders $0.00 $0.00 2021 2022 2023 2024 2021 2022 2023 2024
(1) Projections are based on US$55 WTI/bbl and C$1.95/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted at the Pro Forma Company equity value per share at 4.5x EV/EBITDA. (3)
Assumes exchange ratio of 2.0x. 26 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations. ($/sh) (boe/d per MM Shares) (x) ($/sh) (x)Bonterra Outlook Meaningfully Improved at US$55 WTI/bbl Bonterra
Standalone Bonterra w/ BDC Pro Forma 4.0x 3.0x (1) Bonterra Standalone vs. Pro Forma Company Outlook at US$55 WTI/bbl 2.0x 1.0x 0.0x (2) Production per Debt Adjusted Share Debt / LTM EBITDA 2021 2022 2023 2024 900 3.5x >1x Increase for Bonterra
800 3.0x Shareholders 700 2.5x 600 2.0x 500 400 1.5x 300 1.0x 200 >0.5x Debt Multiple Decrease 0.5x 100 for Bonterra Shareholders 0 0.0x 2021 2022 2023 2024 2021 2022 2023 2024 (3) (3)(4) Funds Flow per Share Implied Year End Equity Value per
Share at 4.5x EV/EBITDA $7.00 $30.00 2x Increase to Projected $6.00 $25.00 Bonterra Equity Value per Share $5.00 $20.00 $4.00 $15.00 $3.00 $10.00 $2.00 +1.7x Increase $5.00 $1.00 for Bonterra Shareholders $0.00 $0.00 2021 2022 2023 2024 2021 2022
2023 2024 (1) Projections are based on US$55 WTI/bbl and C$1.95/MMBtu AECO price deck. (2) Production per Debt adjusted share based on the year over year change in Net Debt adjusted at the Pro Forma Company equity value per share at 4.5x EV/EBITDA.
(3) Assumes exchange ratio of 2.0x. 26 (4) Pro Forma Company assumes unsecured liability claims arising from Obsidian Energy obligations. ($/sh) (boe/d per MM Shares) (x) ($/sh) (x)
Potential for Meaningful BNE Share Price Increase (1) Pro Forma Company
Equity Value Trading Summary - EV/EBITDA Multiple Sensitivity Pro Forma Trading Summary - EV / EBITDA Multiple and Commodity Price Sensitivity YE 2021 YE 2022 Assumed EV / EBITDA x 4.0x 4.5x 5.0x 4.0x 4.5x 5.0x Illustrative Implied Pro Forma (PF)
Equity Value per Bonterra Share C$/Sh $4.47 $6.41 $8.36 $8.14 $10.43 $12.71 (2) % 231% 375% 519% 503% 672% 841% Implied PF Premium to Bonterra 9/4/2020 Share Price US$50 WTI/bbl (3) % 511% 231% 166% 363% 239% 189% Implied PF Premium to Bonterra
Standalone Equity Value per Share (3) % 428% 196% 140% 218% 155% 126% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $8.52 $10.87 $13.21 $13.44 $16.16
$18.88 (2) % 531% 705% 879% 895% 1097% 1299% Implied PF Premium to Bonterra 9/4/2020 Share Price US$55 WTI/bbl (3) % 159% 129% 113% 170% 146% 132% Implied PF Premium to Bonterra Standalone Equity Value per Share (3) % 136% 109% 94% 116% 101% 91%
Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $1.44 $3.08 $4.72 $4.11 $6.05 $8.00 (2) % 7% 128% 250% 204% 348% 492% Implied PF Premium to Bonterra
9/4/2020 Share Price US$45 WTI/bbl (3) % No Value No Value 500% No Value 1447% 430% Implied PF Premium to Bonterra Standalone Equity Value per Share (3) No Value No Value No Value % 420% 507% 250% Implied PF Premium to Bonterra w/ BDC Standalone
Equity Value per Share Note: Pro Forma Company forecast year end Net Debt includes unsecured liability claims arising from Obsidian Energy obligations. (1) Projections are based on: in US$45 WTI/bbl case, C$2.50/MMBtu AECO; in US$50 WTI/bbl case,
C$1.95/MMBtu AECO; in US$55 WTI/bbl case, C$1.95/MMBtu AECO. (2) Based on Bonterra closing price of $1.35/sh, as at 9/4/2020. 27 27 (3) Based on Bonterra standalone and Bonterra with BDC forecast equity value per share at stated sensitized multiple
and US$ WTI/bbl Price.Potential for Meaningful BNE Share Price Increase (1) Pro Forma Company Equity Value Trading Summary - EV/EBITDA Multiple Sensitivity Pro Forma Trading Summary - EV / EBITDA Multiple and Commodity Price Sensitivity YE 2021 YE
2022 Assumed EV / EBITDA x 4.0x 4.5x 5.0x 4.0x 4.5x 5.0x Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $4.47 $6.41 $8.36 $8.14 $10.43 $12.71 (2) % 231% 375% 519% 503% 672% 841% Implied PF Premium to Bonterra 9/4/2020
Share Price US$50 WTI/bbl (3) % 511% 231% 166% 363% 239% 189% Implied PF Premium to Bonterra Standalone Equity Value per Share (3) % 428% 196% 140% 218% 155% 126% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Illustrative
Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $8.52 $10.87 $13.21 $13.44 $16.16 $18.88 (2) % 531% 705% 879% 895% 1097% 1299% Implied PF Premium to Bonterra 9/4/2020 Share Price US$55 WTI/bbl (3) % 159% 129% 113% 170% 146% 132% Implied
PF Premium to Bonterra Standalone Equity Value per Share (3) % 136% 109% 94% 116% 101% 91% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Illustrative Implied Pro Forma (PF) Equity Value per Bonterra Share C$/Sh $1.44 $3.08
$4.72 $4.11 $6.05 $8.00 (2) % 7% 128% 250% 204% 348% 492% Implied PF Premium to Bonterra 9/4/2020 Share Price US$45 WTI/bbl (3) % No Value No Value 500% No Value 1447% 430% Implied PF Premium to Bonterra Standalone Equity Value per Share (3) No
Value No Value No Value % 420% 507% 250% Implied PF Premium to Bonterra w/ BDC Standalone Equity Value per Share Note: Pro Forma Company forecast year end Net Debt includes unsecured liability claims arising from Obsidian Energy obligations. (1)
Projections are based on: in US$45 WTI/bbl case, C$2.50/MMBtu AECO; in US$50 WTI/bbl case, C$1.95/MMBtu AECO; in US$55 WTI/bbl case, C$1.95/MMBtu AECO. (2) Based on Bonterra closing price of $1.35/sh, as at 9/4/2020. 27 27 (3) Based on Bonterra
standalone and Bonterra with BDC forecast equity value per share at stated sensitized multiple and US$ WTI/bbl Price.
End NotesEnd Notes
End Notes Slide 3: Obsidian Energy Corporate Overview Slide 14: Financial
and Operational Metrics Contribution Market Capitalization and Enterprise Value was determined at the close of business on September 4th, Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public 2020. Net Debt
and Common Shares Outstanding is based on Q2 2020 financials. Tax Pools are based information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding on YE19 financials. available to accelerate capital expenditures
relative to the Bonterra standalone case Pro Forma Forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and Reserves (2P), RLI, is based on 2P, PDP Decline are as disclosed in our press release dated February
C$1.95/MMBtu AECO 6, 2020, titled “Obsidian Energy Releases 2019 Reserves Results” (the “Release”). LTM statistics as reported by each company for the 12 months ended 6/30/2020 Market cap based on closing share price as at
September 4, 2020 and shares outstanding as at Mid-points of guidance: 6/30/2020 Second half of 2020: 10,840 bbl/d light oil, 2,995 bbl/d heavy oil, 2,000 bbl/d NGLs and 50.5 mmcf/d natural gas Slide 15: Public Trading Comparables: Full year 2020:
11,680 bbl/d light oil, 2,885 bbl/d heavy oil, 2,135 bbl/d NGLs and 51.3 mmcf/d natural Market cap based on closing share price as at September 4, 2020 and shares outstanding as at gas 6/30/2020 EV based on market cap and Net Debt as at 6/30/2020
Slide 5: Transaction Considerations Consensus estimates per FactSet and based on median of all brokers as at September 4, 2020. Breakeven WTI price defined as US$/bbl WTI price required to fund sustaining capital to maintain flat Estimates for
Obsidian Energy and Bonterra based on median of all brokers as at August 28, 2020 production within cash flow on an exit to exit basis WTI breakeven forecast assumes US$4.00/bbl Edmonton Par differentials, US$14.00/bbl WCS Slide 16: Bonterra Outlook
Meaningfully Improved differentials, US$1.00/MMbtu AECO differentials and 1.36x CAD/USD FX Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/
BDC assumes additional funding Slide 6: The Cardium Champion– At a Glance available to accelerate capital expenditures relative to the Bonterra standalone case. Reserves (2P), RLI, is based on 2P, PDP Decline are as disclosed in the Release
Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and C$1.95/MMBtu AECO Slide 7: Obsidian Energy Strategic Priorities Cardium production is A&D adjusted. Liquids include oil, condensate and propane Slide
17: Accretive to Bonterra Shareholders Cash costs shown as disclosed by Obsidian Energy for full year 2018, full year 2019 and 6 months Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public ended 6/30/2020.
Includes net G&A per boe, operating costs per boe and transportation costs per boe information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding available to accelerate capital expenditures relative to the
Bonterra standalone case Slide 8: Demonstrated Strong Track Record Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and Peer group includes BNE, CJ, IPO, OBE, SGY, TOG, TVE, WCP C$1.95/MMBtu AECO Change in
cash costs represents the change in total opex per boe, transportation costs per boe and net LTM metrics based on BNE and OBE reported funds flow from operations and inclusive of “year one” G&A per boe from the 3 months ended
6/30/2019 to the 3 months ended 6/30/2020 opex and G&A/other synergies. Pro Forma metrics assume an exchange ratio of 2.0x H1 2020 operating netback defined as corporate operating netback, inclusive of hedging gains and losses, for each
respective peer as disclosed for the 6 months ended 6/30/2020 Slide 18: Potential for Meaningful BNE Share Price Increase Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public Slide 9: Potential to Realize
Meaningful Synergies information at US$50 WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding Synergies reflected assume reductions from each company’s standalone outlook in Pro Forma capital available to accelerate capital
expenditures relative to the Bonterra standalone case expenditures, operating costs and G&A / other costs Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and FCF from optimized development reflects the
increase in FCF expected, relative to the combined C$1.95/MMBtu AECO standalone outlook of each company, from the pro forma development plan and cost structure. Year one expected to be 2021. Over Three years expected to be 2021, 2022 and 2023 Slides
23– 26: Price sensitivities as per the model shown in slides 13 and 16. The price sensitivities are US$45/bbl Slide 10: Significantly Improved Financial Resilience WTI and C$2.50/MMBtu AECO (slides 23 and 24) and US$55/bbl WTI and C$1.95/MMBtu
AECO Breakeven WTI price defined as US$/bbl WTI price required to fund sustaining capital to maintain flat (slides 25 and 26). production within cash flow on an exit to exit basis WTI breakeven forecast assumes US$4.00/bbl Edmonton Par
differentials, US$14.00/bbl WCS Slide 27: Potential for meaningful BNE share price increase differentials, US$1.00/MMbtu AECO differentials and 1.36x CAD/USD FX Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on
public information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding Slide 11: High Grade Development to Top Assets available to accelerate capital expenditures relative to the Bonterra standalone case Economic
inventory refers to inventory that generates a 20% before tax IRR on a half cycle basis at Pro Forma Forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and US$50/bbl WTI and C$1.95/MMBtu AECO C$1.95/MMBtu AECO or US$55
WTI and C$1.95/MMBtu AECO or US$45 WTI and C$2.50/MMBtu Based on Obsidian combination model - OBE Other refers to Esther Viking, PROP, Mannville and AECO other assets apart from the Cardium 29End Notes Slide 3: Obsidian Energy Corporate Overview
Slide 14: Financial and Operational Metrics Contribution Market Capitalization and Enterprise Value was determined at the close of business on September 4th, Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on
public 2020. Net Debt and Common Shares Outstanding is based on Q2 2020 financials. Tax Pools are based information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding on YE19 financials. available to accelerate
capital expenditures relative to the Bonterra standalone case Pro Forma Forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and Reserves (2P), RLI, is based on 2P, PDP Decline are as disclosed in our press release dated
February C$1.95/MMBtu AECO 6, 2020, titled “Obsidian Energy Releases 2019 Reserves Results” (the “Release”). LTM statistics as reported by each company for the 12 months ended 6/30/2020 Market cap based on closing share price
as at September 4, 2020 and shares outstanding as at Mid-points of guidance: 6/30/2020 Second half of 2020: 10,840 bbl/d light oil, 2,995 bbl/d heavy oil, 2,000 bbl/d NGLs and 50.5 mmcf/d natural gas Slide 15: Public Trading Comparables: Full year
2020: 11,680 bbl/d light oil, 2,885 bbl/d heavy oil, 2,135 bbl/d NGLs and 51.3 mmcf/d natural Market cap based on closing share price as at September 4, 2020 and shares outstanding as at gas 6/30/2020 EV based on market cap and Net Debt as at
6/30/2020 Slide 5: Transaction Considerations Consensus estimates per FactSet and based on median of all brokers as at September 4, 2020. Breakeven WTI price defined as US$/bbl WTI price required to fund sustaining capital to maintain flat Estimates
for Obsidian Energy and Bonterra based on median of all brokers as at August 28, 2020 production within cash flow on an exit to exit basis WTI breakeven forecast assumes US$4.00/bbl Edmonton Par differentials, US$14.00/bbl WCS Slide 16: Bonterra
Outlook Meaningfully Improved differentials, US$1.00/MMbtu AECO differentials and 1.36x CAD/USD FX Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public information at US$50/bbl WTI and C$1.95/MMBtu AECO;
Bonterra w/ BDC assumes additional funding Slide 6: The Cardium Champion– At a Glance available to accelerate capital expenditures relative to the Bonterra standalone case. Reserves (2P), RLI, is based on 2P, PDP Decline are as disclosed in
the Release Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and C$1.95/MMBtu AECO Slide 7: Obsidian Energy Strategic Priorities Cardium production is A&D adjusted. Liquids include oil, condensate and
propane Slide 17: Accretive to Bonterra Shareholders Cash costs shown as disclosed by Obsidian Energy for full year 2018, full year 2019 and 6 months Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public
ended 6/30/2020. Includes net G&A per boe, operating costs per boe and transportation costs per boe information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding available to accelerate capital expenditures
relative to the Bonterra standalone case Slide 8: Demonstrated Strong Track Record Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and Peer group includes BNE, CJ, IPO, OBE, SGY, TOG, TVE, WCP C$1.95/MMBtu
AECO Change in cash costs represents the change in total opex per boe, transportation costs per boe and net LTM metrics based on BNE and OBE reported funds flow from operations and inclusive of “year one” G&A per boe from the 3
months ended 6/30/2019 to the 3 months ended 6/30/2020 opex and G&A/other synergies. Pro Forma metrics assume an exchange ratio of 2.0x H1 2020 operating netback defined as corporate operating netback, inclusive of hedging gains and losses, for
each respective peer as disclosed for the 6 months ended 6/30/2020 Slide 18: Potential for Meaningful BNE Share Price Increase Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based on public Slide 9: Potential to
Realize Meaningful Synergies information at US$50 WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding Synergies reflected assume reductions from each company’s standalone outlook in Pro Forma capital available to accelerate
capital expenditures relative to the Bonterra standalone case expenditures, operating costs and G&A / other costs Pro Forma forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and FCF from optimized development
reflects the increase in FCF expected, relative to the combined C$1.95/MMBtu AECO standalone outlook of each company, from the pro forma development plan and cost structure. Year one expected to be 2021. Over Three years expected to be 2021, 2022
and 2023 Slides 23– 26: Price sensitivities as per the model shown in slides 13 and 16. The price sensitivities are US$45/bbl Slide 10: Significantly Improved Financial Resilience WTI and C$2.50/MMBtu AECO (slides 23 and 24) and US$55/bbl WTI
and C$1.95/MMBtu AECO Breakeven WTI price defined as US$/bbl WTI price required to fund sustaining capital to maintain flat (slides 25 and 26). production within cash flow on an exit to exit basis WTI breakeven forecast assumes US$4.00/bbl Edmonton
Par differentials, US$14.00/bbl WCS Slide 27: Potential for meaningful BNE share price increase differentials, US$1.00/MMbtu AECO differentials and 1.36x CAD/USD FX Bonterra forecast based on Obsidian Energy evaluation and forecast of Bonterra based
on public information at US$50/bbl WTI and C$1.95/MMBtu AECO; Bonterra w/ BDC assumes additional funding Slide 11: High Grade Development to Top Assets available to accelerate capital expenditures relative to the Bonterra standalone case Economic
inventory refers to inventory that generates a 20% before tax IRR on a half cycle basis at Pro Forma Forecast based on Obsidian Energy illustrative combination model at US$50/bbl WTI and US$50/bbl WTI and C$1.95/MMBtu AECO C$1.95/MMBtu AECO or US$55
WTI and C$1.95/MMBtu AECO or US$45 WTI and C$2.50/MMBtu Based on Obsidian combination model - OBE Other refers to Esther Viking, PROP, Mannville and AECO other assets apart from the Cardium 29
Details on Intention to Make an Offer Other than in certain circumstances
described below, Obsidian Energy intends to commence the Offer as soon as practicable. Once the Offer is formally launched, it will be open for acceptance by Bonterra shareholders for 105 days, unless the Offer is extended, accelerated or withdrawn,
in each case, in accordance with applicable law. The Offer will be subject to certain conditions, including: (i) that the Bonterra Shares validly deposited to the Offer, and not withdrawn, represent at least 66 2/3% of the then outstanding Bonterra
Shares (on a fully-diluted basis); (ii) receipt of all governmental, regulatory and stock exchange approvals, including pursuant to the Competition Act (Canada) and the approval of the TSX, that Obsidian Energy considers necessary or desirable in
connection with the Offer; (iii) there being no legal prohibition against Obsidian Energy making the Offer or taking up and paying for the Bonterra Shares; (iv) Bonterra not having adopted or implemented a shareholder rights plan, disposed of any
material assets, incurred any material debts (including pursuant to its announced prospective term facility with the BDC under its Business Credit Availability Program), implemented any changes in its capital structure or otherwise implemented or
attempted to implement a defensive tactic; (v) no material adverse change having occurred in the business, affairs, prospects or assets of Bonterra, including the commencement of proceedings under the Companies’ Creditors Arrangement Act
(Canada) or the Bankruptcy and Insolvency Act (Canada); (vi) no litigation or regulatory order that may hamper the carrying out of the Offer or any second step transaction in connection with the Offer; (vii) Obsidian Energy shareholders approving,
as required by the rules of the TSX, the issuance of the Obsidian Shares to be distributed by Obsidian Energy in connection with the Offer; (viii) Obsidian Energy being provided with access to all non-public information regarding Bonterra that has
been made available to any potential acquiror or, in any case, which a potential acquiror would reasonably require to be given, provided or have made available to it, in each case since June 30, 2020 for the purpose of considering or seeking
information to consider an acquisition of, or business combination with, Bonterra in each case on substantially the same terms and conditions as have been or would reasonably be imposed on a potential acquiror, other than any term or condition that
would be inconsistent with or would render Obsidian Energy unable to make the Offer, to take-up and pay under the Offer or complete any second step transaction; (ix) Obsidian Energy not becoming aware of Bonterra having made any untrue statement of
a material fact or omitting to state a material fact that is required to be made to any securities regulatory authority; (x) having received all third party consents or approvals that Obsidian Energy considers necessary or desirable in connection
with the Offer, including without limitation all necessary consents to the Offer, or waivers required as a result of the consummation of the Offer, from the lenders under Bonterra’s revolving credit facility and, as applicable, lenders under
Bonterra’s subordinated notes to private related party investors or any other similar agreement or instrument; and (xi) the statutory minimum tender and other conditions set out in National Instrument 62-104 Take-Over Bids and Issuer Bids
(which cannot be waived); and (xii) other customary conditions. Readers are cautioned that Obsidian Energy may determine not to make the Offer if: (i) Bonterra implements or attempts to implement defensive tactics in relation to the Offer, (ii)
Obsidian Energy uncovers or otherwise identifies information suggesting that the business, affairs, prospects or assets of Bonterra have been impaired or uncovers or otherwise identifies other undisclosed material adverse information concerning
Bonterra; (iii) Bonterra determines to engage with Obsidian Energy to negotiate the terms of a combination transaction and Bonterra and Obsidian Energy determine to undertake that transaction utilizing a structure other than a bid such as a plan of
arrangement; or (iv) a material adverse change has occurred in the business, affairs, prospects or assets of Bonterra prior to commencement of the Offer. Accordingly, there can be no assurance that the Offer will be made or that the final terms of
the Offer will be as set out in this news release. 30Details on Intention to Make an Offer Other than in certain circumstances described below, Obsidian Energy intends to commence the Offer as soon as practicable. Once the Offer is formally
launched, it will be open for acceptance by Bonterra shareholders for 105 days, unless the Offer is extended, accelerated or withdrawn, in each case, in accordance with applicable law. The Offer will be subject to certain conditions, including: (i)
that the Bonterra Shares validly deposited to the Offer, and not withdrawn, represent at least 66 2/3% of the then outstanding Bonterra Shares (on a fully-diluted basis); (ii) receipt of all governmental, regulatory and stock exchange approvals,
including pursuant to the Competition Act (Canada) and the approval of the TSX, that Obsidian Energy considers necessary or desirable in connection with the Offer; (iii) there being no legal prohibition against Obsidian Energy making the Offer or
taking up and paying for the Bonterra Shares; (iv) Bonterra not having adopted or implemented a shareholder rights plan, disposed of any material assets, incurred any material debts (including pursuant to its announced prospective term facility with
the BDC under its Business Credit Availability Program), implemented any changes in its capital structure or otherwise implemented or attempted to implement a defensive tactic; (v) no material adverse change having occurred in the business, affairs,
prospects or assets of Bonterra, including the commencement of proceedings under the Companies’ Creditors Arrangement Act (Canada) or the Bankruptcy and Insolvency Act (Canada); (vi) no litigation or regulatory order that may hamper the
carrying out of the Offer or any second step transaction in connection with the Offer; (vii) Obsidian Energy shareholders approving, as required by the rules of the TSX, the issuance of the Obsidian Shares to be distributed by Obsidian Energy in
connection with the Offer; (viii) Obsidian Energy being provided with access to all non-public information regarding Bonterra that has been made available to any potential acquiror or, in any case, which a potential acquiror would reasonably require
to be given, provided or have made available to it, in each case since June 30, 2020 for the purpose of considering or seeking information to consider an acquisition of, or business combination with, Bonterra in each case on substantially the same
terms and conditions as have been or would reasonably be imposed on a potential acquiror, other than any term or condition that would be inconsistent with or would render Obsidian Energy unable to make the Offer, to take-up and pay under the Offer
or complete any second step transaction; (ix) Obsidian Energy not becoming aware of Bonterra having made any untrue statement of a material fact or omitting to state a material fact that is required to be made to any securities regulatory authority;
(x) having received all third party consents or approvals that Obsidian Energy considers necessary or desirable in connection with the Offer, including without limitation all necessary consents to the Offer, or waivers required as a result of the
consummation of the Offer, from the lenders under Bonterra’s revolving credit facility and, as applicable, lenders under Bonterra’s subordinated notes to private related party investors or any other similar agreement or instrument; and
(xi) the statutory minimum tender and other conditions set out in National Instrument 62-104 Take-Over Bids and Issuer Bids (which cannot be waived); and (xii) other customary conditions. Readers are cautioned that Obsidian Energy may determine not
to make the Offer if: (i) Bonterra implements or attempts to implement defensive tactics in relation to the Offer, (ii) Obsidian Energy uncovers or otherwise identifies information suggesting that the business, affairs, prospects or assets of
Bonterra have been impaired or uncovers or otherwise identifies other undisclosed material adverse information concerning Bonterra; (iii) Bonterra determines to engage with Obsidian Energy to negotiate the terms of a combination transaction and
Bonterra and Obsidian Energy determine to undertake that transaction utilizing a structure other than a bid such as a plan of arrangement; or (iv) a material adverse change has occurred in the business, affairs, prospects or assets of Bonterra prior
to commencement of the Offer. Accordingly, there can be no assurance that the Offer will be made or that the final terms of the Offer will be as set out in this news release. 30
Definitions and Industry Terms FCF or Free Cash Flow, which is Funds Flow
from Operations less Opex means operating costs PDP means proved developed producing reserves as per Oil and Total Capital Expenditures Gas Disclosures Advisory Opti means optimization projects 1P means proved reserves as per Oil and Gas Disclosures
FX means foreign exchange rate, in our case typically refers to C$ Advisory Payout means the time it takes to cover the return of your initial cash to US$ exchange rates outlay 2P means proved plus probable reserves as per Oil and Gas FFO means
funds flow from operations, detailed in the Non-GAAP Disclosures Advisory PROP and Peace River means Peace River Oil Partnership measure advisory ABC means area based closure program initiative from the AER Release means our a press release dated
February 6, 2020 FY means fiscal year A&D means oil and natural gas property acquisitions and divestitures GJ means gigajoules Recycle Ratio means Netback divided by F&D AECO means Alberta Energy Company G&A means general and
administrative expenses RHS means Right Hand Side AER means Alberta Energy Regulator GOR means gas oil ratio ARO means Asset Retirement Obligation RLI means Reserve Life Index Avg means Average H1 means first half of the year SEC means U.S.
Securities and Exchange Commission bbl and bbl/d means barrels of oil and barrels of oil per day, H2 means second half of the year respectively SVP means Senior Vice President BDC means Business Development Bank of Canada IP means initial
production, which is the average production over a Spud means the process of beginning to drill a well specified number of days Bonterra or BNE means Bonterra Energy Corp USD means United States Dollar boe, boe/d means barrels of oil equivalent and
barrels of oil IRR means Internal Rate of Return which is the interest rate at equivalent per day, respectively which the NPV equals zero VP means Vice President BT IRR means Before Tax Internal Rate of Return LHS means Left Hand Side WCS means
Western Canadian Select Btu means British Thermal Units Liquids means crude oil and NGLs CAD means Canadian Dollar WCSB means western Canadian sedimentary basin M or k means thousands Capital Expenditures & Capex includes all direct costs
related to WI means working interest our operated and non-operated development programs including drilling, completions, tie-in, development of and expansions to MM means millions WTI means West Texas Intermediate existing facilities and major
infrastructure, optimization and EOR activities Mboe means thousand barrels oil equivalent YE means year end CEO means Chief Executive Officer MMboe means million barrels oil equivalent YTD means year to date CFO means Chief Financial Officer N, S,
E, W means the North, South, East, West or in any Company or Obsidian Energy or OBE means Obsidian Energy combination Ltd; as applicable DCE&T means drilling, completion, equip and tie-in Netback means the summary of all costs associated with
bringing one unit of oil to the marketplace and the revenues from the sale of Decommissioning means decommissioning expenditures all products generated from that same unit and is expressed as a gross profit per barrel EOR means enhance oil recovery
EPAC means Explorers and Producers Association of Canada NGL means natural gas liquids which includes hydrocarbon not marketed as natural gas (methane) or various classes of oil EUR means estimated ultimate recovery F&D means finding and
development costs NPV means net present value, before tax discounted at 10 percent 31Definitions and Industry Terms FCF or Free Cash Flow, which is Funds Flow from Operations less Opex means operating costs PDP means proved developed producing
reserves as per Oil and Total Capital Expenditures Gas Disclosures Advisory Opti means optimization projects 1P means proved reserves as per Oil and Gas Disclosures FX means foreign exchange rate, in our case typically refers to C$ Advisory Payout
means the time it takes to cover the return of your initial cash to US$ exchange rates outlay 2P means proved plus probable reserves as per Oil and Gas FFO means funds flow from operations, detailed in the Non-GAAP Disclosures Advisory PROP and
Peace River means Peace River Oil Partnership measure advisory ABC means area based closure program initiative from the AER Release means our a press release dated February 6, 2020 FY means fiscal year A&D means oil and natural gas property
acquisitions and divestitures GJ means gigajoules Recycle Ratio means Netback divided by F&D AECO means Alberta Energy Company G&A means general and administrative expenses RHS means Right Hand Side AER means Alberta Energy Regulator GOR
means gas oil ratio ARO means Asset Retirement Obligation RLI means Reserve Life Index Avg means Average H1 means first half of the year SEC means U.S. Securities and Exchange Commission bbl and bbl/d means barrels of oil and barrels of oil per day,
H2 means second half of the year respectively SVP means Senior Vice President BDC means Business Development Bank of Canada IP means initial production, which is the average production over a Spud means the process of beginning to drill a well
specified number of days Bonterra or BNE means Bonterra Energy Corp USD means United States Dollar boe, boe/d means barrels of oil equivalent and barrels of oil IRR means Internal Rate of Return which is the interest rate at equivalent per day,
respectively which the NPV equals zero VP means Vice President BT IRR means Before Tax Internal Rate of Return LHS means Left Hand Side WCS means Western Canadian Select Btu means British Thermal Units Liquids means crude oil and NGLs CAD means
Canadian Dollar WCSB means western Canadian sedimentary basin M or k means thousands Capital Expenditures & Capex includes all direct costs related to WI means working interest our operated and non-operated development programs including
drilling, completions, tie-in, development of and expansions to MM means millions WTI means West Texas Intermediate existing facilities and major infrastructure, optimization and EOR activities Mboe means thousand barrels oil equivalent YE means
year end CEO means Chief Executive Officer MMboe means million barrels oil equivalent YTD means year to date CFO means Chief Financial Officer N, S, E, W means the North, South, East, West or in any Company or Obsidian Energy or OBE means Obsidian
Energy combination Ltd; as applicable DCE&T means drilling, completion, equip and tie-in Netback means the summary of all costs associated with bringing one unit of oil to the marketplace and the revenues from the sale of Decommissioning means
decommissioning expenditures all products generated from that same unit and is expressed as a gross profit per barrel EOR means enhance oil recovery EPAC means Explorers and Producers Association of Canada NGL means natural gas liquids which
includes hydrocarbon not marketed as natural gas (methane) or various classes of oil EUR means estimated ultimate recovery F&D means finding and development costs NPV means net present value, before tax discounted at 10 percent 31
Non-GAAP Measures Advisory In this presentation, we refer to certain
financial measures that are not determined in accordance with IFRS. These measures as presented do not have any standardized meaning prescribed by IFRS and therefore they may not be comparable with calculations of similar measures for other
companies. We believe that, in conjunction with results presented in accordance with IFRS, these measures assist in providing a more complete understanding of certain aspects of our results of operations and financial performance. You are cautioned,
however, that these measures should not be construed as an alternative to measures determined in accordance with IFRS as an indication of our performance. These measures include the following: EBITDA is net earnings (loss) plus finance expenses
(income), provisions for (recovery of) income taxes, and depletion, depreciation and amortization. Net Debt in regard to Obsidian Energy, it is the amount of long-term debt, comprised of long-term notes and bank debt, plus net working capital
(surplus)/deficit. Net Debt is a measure of leverage and liquidity Debt is bank debt, notes and, solely in respect of Bonterra, subordinated debt. Cash cost is sum of operating costs, transport costs and G&A on a $/boe basis. Production per Debt
Adjusted Share is based on the year over year change in net debt adjusted at the Pro Forma Company equity value per share at 4.5x EV/EBITDA. Enterprise Value is a measure of total value of the applicable company calculated by aggregating the market
value of its common shares at a specific date, adding its total Debt and subtracting its cash and cash and cash equivalents. Funds Flow from Operations is cash flow from operating activities before changes in non-cash working capital,
decommissioning expenditures, onerous office lease settlements, the effects of financing related transactions from foreign exchange contracts and debt repayments, restructuring charges and certain other expenses and is representative of cash related
to continuing operations. Funds flow from operations is used to assess the combined entity’s ability to fund planned capital programs. Cash Flow is funds flow from operations before changes in any non-cash working capital changes and
decommissioning liabilities. Free cash flow is funds flow from operations less capital and decommissioning expenditures. Unlevered Free Cash Flow is the free cash flow before taking interest payments into account. Netback is the per unit of
production amount of revenue less royalties, operating expenses, transportation expenses and realized risk management gains and losses, and is used in capital allocation decisions and to economically rank projects. Notice to Shareholders in the
United States The financial information presented herein has been prepared in accordance with Canadian GAAP and is subject to Canadian auditing and auditor independence standards, and thus may not be comparable to financial statements of U.S.
companies presented in accordance with U.S. GAAP. 32Non-GAAP Measures Advisory In this presentation, we refer to certain financial measures that are not determined in accordance with IFRS. These measures as presented do not have any standardized
meaning prescribed by IFRS and therefore they may not be comparable with calculations of similar measures for other companies. We believe that, in conjunction with results presented in accordance with IFRS, these measures assist in providing a more
complete understanding of certain aspects of our results of operations and financial performance. You are cautioned, however, that these measures should not be construed as an alternative to measures determined in accordance with IFRS as an
indication of our performance. These measures include the following: EBITDA is net earnings (loss) plus finance expenses (income), provisions for (recovery of) income taxes, and depletion, depreciation and amortization. Net Debt in regard to
Obsidian Energy, it is the amount of long-term debt, comprised of long-term notes and bank debt, plus net working capital (surplus)/deficit. Net Debt is a measure of leverage and liquidity Debt is bank debt, notes and, solely in respect of Bonterra,
subordinated debt. Cash cost is sum of operating costs, transport costs and G&A on a $/boe basis. Production per Debt Adjusted Share is based on the year over year change in net debt adjusted at the Pro Forma Company equity value per share at
4.5x EV/EBITDA. Enterprise Value is a measure of total value of the applicable company calculated by aggregating the market value of its common shares at a specific date, adding its total Debt and subtracting its cash and cash and cash equivalents.
Funds Flow from Operations is cash flow from operating activities before changes in non-cash working capital, decommissioning expenditures, onerous office lease settlements, the effects of financing related transactions from foreign exchange
contracts and debt repayments, restructuring charges and certain other expenses and is representative of cash related to continuing operations. Funds flow from operations is used to assess the combined entity’s ability to fund planned capital
programs. Cash Flow is funds flow from operations before changes in any non-cash working capital changes and decommissioning liabilities. Free cash flow is funds flow from operations less capital and decommissioning expenditures. Unlevered Free Cash
Flow is the free cash flow before taking interest payments into account. Netback is the per unit of production amount of revenue less royalties, operating expenses, transportation expenses and realized risk management gains and losses, and is used
in capital allocation decisions and to economically rank projects. Notice to Shareholders in the United States The financial information presented herein has been prepared in accordance with Canadian GAAP and is subject to Canadian auditing and
auditor independence standards, and thus may not be comparable to financial statements of U.S. companies presented in accordance with U.S. GAAP. 32
Oil and Gas Information Advisory Barrels of oil equivalent ( boe ) may be
misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a
6:1 basis is misleading as an indication of value. Inventory Drilling location inventory counts are internal estimates based on our prospective acreage and an assumption as to the number of wells that can be drilled per section and well length based
on industry practice and internal review. A portion of these inventory locations may have attributed reserves or resources. Inventory locations have been identified by management as an estimation of our multi-year drilling activities based on
evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that we will drill all inventory drilling locations and if drilled there is no certainty that such locations will result in
additional oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices,
costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the inventory drilling locations have been derisked by drilling existing wells in relative close proximity to such inventory
drilling locations, other inventory drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in
such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production. 33Oil and Gas Information Advisory Barrels of oil equivalent ( boe ) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an
indication of value. Inventory Drilling location inventory counts are internal estimates based on our prospective acreage and an assumption as to the number of wells that can be drilled per section and well length based on industry practice and
internal review. A portion of these inventory locations may have attributed reserves or resources. Inventory locations have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable
geologic, seismic, engineering, production and reserves information. There is no certainty that we will drill all inventory drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves,
resources or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results,
additional reservoir information that is obtained and other factors. While certain of the inventory drilling locations have been derisked by drilling existing wells in relative close proximity to such inventory drilling locations, other inventory
drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is
more uncertainty that such wells will result in additional oil and gas reserves or production. 33
Reserves Disclosure and Definitions Unless otherwise noted, any reference
to Obsidian Energy reserves in this presentation are based on the report ( Sproule Report ) prepared by Sproule Associates Limited dated February 3, 2020 where they evaluated one hundred percent of the crude oil, natural gas and natural gas liquids
reserves of Obsidian Energy and the net present value of future net revenue attributable to those reserves effective as at December 31, 2019. For further information regarding the Sproule Report, see our Release. It should not be assumed that the
estimates of future net revenues presented herein represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material. The recovery and reserves
estimates of crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquid reserves may be
greater than or less than the estimates provided herein. The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. Production and
Reserves The use of the word gross in this presentation (i) in relation to our interest in production and reserves, means our working interest (operating or non-operating) share before deduction of royalties and without including our royalty
interests, (ii) in relation to wells, means the total number of wells in which we have an interest, and (iii) in relation to properties, means the total area of properties in which we have an interest. The use of the word net in this presentation
(i) in relation to our interest in production and reserves, means our working interest (operating or non-operating) share after deduction of royalty obligations, plus our royalty interests, (ii) in relation to our interest in wells, means the number
of wells obtained by aggregating our working interest in each of our gross wells, and (iii) in relation to our interest in a property, means the total area in which we have an interest multiplied by the working interest owned by us. Unless otherwise
stated, per-well production volumes and reserves estimates in this presentation are stated on a gross basis, while corporate-level volumes and reserves estimates are shown on a net basis. All references to well counts are gross, unless otherwise
indicated. Reserve Definitions Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological,
geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates.
proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. probable reserves are those additional
reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Each of the reserves
categories (proved and probable) may be divided into developed and undeveloped categories: Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been
installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non- producing. Developed producing reserves
are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of
production must be known with reasonable certainty. Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is
unknown. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They
must fully meet the requirements of the reserves category (proved, probable) to which they are assigned. 34Reserves Disclosure and Definitions Unless otherwise noted, any reference to Obsidian Energy reserves in this presentation are based on the
report ( Sproule Report ) prepared by Sproule Associates Limited dated February 3, 2020 where they evaluated one hundred percent of the crude oil, natural gas and natural gas liquids reserves of Obsidian Energy and the net present value of future
net revenue attributable to those reserves effective as at December 31, 2019. For further information regarding the Sproule Report, see our Release. It should not be assumed that the estimates of future net revenues presented herein represent the
fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material. The recovery and reserves estimates of crude oil, natural gas liquids and natural gas reserves
provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquid reserves may be greater than or less than the estimates provided herein. The estimates
of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. Production and Reserves The use of the word gross in this presentation (i) in relation to
our interest in production and reserves, means our working interest (operating or non-operating) share before deduction of royalties and without including our royalty interests, (ii) in relation to wells, means the total number of wells in which we
have an interest, and (iii) in relation to properties, means the total area of properties in which we have an interest. The use of the word net in this presentation (i) in relation to our interest in production and reserves, means our working
interest (operating or non-operating) share after deduction of royalty obligations, plus our royalty interests, (ii) in relation to our interest in wells, means the number of wells obtained by aggregating our working interest in each of our gross
wells, and (iii) in relation to our interest in a property, means the total area in which we have an interest multiplied by the working interest owned by us. Unless otherwise stated, per-well production volumes and reserves estimates in this
presentation are stated on a gross basis, while corporate-level volumes and reserves estimates are shown on a net basis. All references to well counts are gross, unless otherwise indicated. Reserve Definitions Reserves are estimated remaining
quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology;
and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates. proved reserves are those reserves that can be estimated with a high
degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. probable reserves are those additional reserves that are less certain to be recovered than proved reserves.
It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Each of the reserves categories (proved and probable) may be divided into developed and
undeveloped categories: Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared
to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non- producing. Developed producing reserves are those reserves that are expected to be recovered from completion
intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. Developed
non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown. Undeveloped reserves are those reserves expected to be
recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (proved,
probable) to which they are assigned. 34
Reserves Disclosure and Definitions - Continued Notice to Shareholders in
the United States Reserve information included in this presentation has been prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), which has been adopted by Securities
Regulatory Authorities in Canada and imposes oil and gas disclosure standards for Canadian public issuers engaged in oil and gas activities that differ from the oil and gas disclosure standards of the SEC under Subpart 1200 of Regulation S-K. NI
51-101 permits oil and gas issuers, in their filings with Canadian Securities Regulatory Authorities, to disclose not only proved and probable reserves but also resources, and to disclose reserves and production on a gross basis before deducting
royalties. The SEC definitions of proved and probable reserves are different than the definitions contained in NI 51-101. Therefore, proved and probable reserves disclosed in this presentation are prepared in compliance with NI 51-101 are not
comparable to those disclosed by U.S. companies in reports filed with the SEC. Moreover, as permitted by NI 51-101, the Offeror has determined and disclosed its reserves and the related net present value of future net revenue from its reserves in
its NI 51-101 compliant reserves disclosure using forecast prices and costs. In contrast, the SEC requires that reserves and related future net revenue be estimated based on historical 12 month average prices rather than forecast prices, but permits
the optional disclosure of revenue estimates based on different price and cost criteria, including standardized future prices or management's own forecasts. Consequently, the oil and gas reserves and resources estimates in this presentation that are
prepared in accordance with NI 51-101 are not comparable to oil and gas reserve estimates provided by U.S. companies in their filings with the SEC. 35Reserves Disclosure and Definitions - Continued Notice to Shareholders in the United States Reserve
information included in this presentation has been prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), which has been adopted by Securities Regulatory Authorities in
Canada and imposes oil and gas disclosure standards for Canadian public issuers engaged in oil and gas activities that differ from the oil and gas disclosure standards of the SEC under Subpart 1200 of Regulation S-K. NI 51-101 permits oil and gas
issuers, in their filings with Canadian Securities Regulatory Authorities, to disclose not only proved and probable reserves but also resources, and to disclose reserves and production on a gross basis before deducting royalties. The SEC definitions
of proved and probable reserves are different than the definitions contained in NI 51-101. Therefore, proved and probable reserves disclosed in this presentation are prepared in compliance with NI 51-101 are not comparable to those disclosed by U.S.
companies in reports filed with the SEC. Moreover, as permitted by NI 51-101, the Offeror has determined and disclosed its reserves and the related net present value of future net revenue from its reserves in its NI 51-101 compliant reserves
disclosure using forecast prices and costs. In contrast, the SEC requires that reserves and related future net revenue be estimated based on historical 12 month average prices rather than forecast prices, but permits the optional disclosure of
revenue estimates based on different price and cost criteria, including standardized future prices or management's own forecasts. Consequently, the oil and gas reserves and resources estimates in this presentation that are prepared in accordance
with NI 51-101 are not comparable to oil and gas reserve estimates provided by U.S. companies in their filings with the SEC. 35
Forward-Looking Information Advisory Certain statements contained in this
presentation constitute forward-looking statements or information (collectively forward-looking statements). 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 and similar words suggesting future events or future performance. In addition, statements relating to reserves or resources are deemed to be
forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In
particular, this document contains forward-looking statements pertaining to, without limitation, the following: the intention to make the Offer, the terms and exchange ratio of the Offer and the timing for the commencement of the Offer, the
anticipated strategic, operational and financial benefits and synergies that may result from the proposed combination between Obsidian Energy and Bonterra, including as to expected cost synergies, accretion and equity appreciation, production levels
and WTI break-even price expectations for each of the entities on a stand-alone basis; the terms and exchange ratio of the proposed combination between Obsidian Energy and Bonterra; that the Offer is the better option compared to adding more debt to
an already over-levered balance sheet for Bonterra shareholders; the ascribed share price market trading multiple to the combined entity and the resulting benefit to Obsidian Energy and Bonterra shareholders; that the Pro Forma Company would be
positioned for future accretive bolt-on acquisitions; and the conditions that the Offer will be subject to and possible reasons that the Offer would not be made. With respect to forward-looking statements contained in this document, Obsidian Energy
has made assumptions regarding, among other things: that both Obsidian Energy and Bonterra, each of which are subject to short term extensions on their respective senior revolving credit facilities continue to obtain extensions in respect of their
thereof and otherwise continue to satisfy the applicable covenants under such facilities, including following the completion of the Offer and any subsequent second step transaction, the ability to complete the Offer and the proposed combination,
integrate Obsidian Energy’s and Bonterra’s respective businesses and operations and realize financial, operational and other synergies from the proposed combination; that each of Obsidian Energy, Bonterra and, following the completion of
the Offer, the combined entity will have the ability to continue as a going concern going forward and realize its assets and discharge its liabilities in the normal course of business; the impact of regional and/or global health related events,
including the ongoing COVID-19 pandemic, on energy demand; that the combined entity’s operations and production will not be disrupted by circumstances attributable to the COVID-19 pandemic and the responses of governments and the public to the
pandemic; global energy policies going forward, including the continued agreement of members of OPEC, Russia and other nations to adhere to existing production quotas or further reduce production quotas; Obsidian Energy’s ability to execute on
its plans as described herein and in its other disclosure documents and the impact that the successful execution of such plans will have on Obsidian Energy and, following the combination, the combined entity and the combined entities’
respective stakeholders; that the combined entity’s shares will trade at a multiple comparable to peers; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future
crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels,
including that we will not be required to shut-in additional production due to the continuation of low commodity prices or the further deterioration of commodity prices and our expectations regarding when commodity prices will improve such that
shut-in properties can be returned to production; future exchange rates and interest rates; future debt levels; the ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control,
including weather, wild fires, infrastructure access and delays in obtaining regulatory approvals and third party consents; the combined entity’s ability to obtain equipment in a timely manner to carry out development activities and the costs
thereof; the combined entity’s ability to market our oil and natural gas successfully to current and new customers; the combined entity’s ability to obtain financing on acceptable terms; and the combined entity’s ability to add
production and reserves through our development and exploitation activities. Although Obsidian Energy believes 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 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 forward-looking statements contained herein will not be correct, which may cause actual performance and financial results to differ materially from any estimates or projections of future performance or results
expressed or implied by such forward-looking statements. Such assumptions, risks and uncertainties are described in Obsidian Energy’s Annual Information Form and other public filings, available in Canada on SEDAR at www.sedar.com and in the
United States on EDGAR at www.sec.com. Further details on assumptions can also be found in the End Notes section of this presentation. Readers are cautioned that such assumptions, risks and uncertainties should not be construed as exhaustive. The
forward-looking statements contained in this document speak only as of the date of this document (September 8, 2020). Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any
forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. 36Forward-Looking Information Advisory Certain statements contained in this presentation constitute
forward-looking statements or information (collectively forward-looking statements). 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 and similar words suggesting future events or future performance. In addition, statements relating to reserves or resources are deemed to be forward-looking statements
as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document
contains forward-looking statements pertaining to, without limitation, the following: the intention to make the Offer, the terms and exchange ratio of the Offer and the timing for the commencement of the Offer, the anticipated strategic, operational
and financial benefits and synergies that may result from the proposed combination between Obsidian Energy and Bonterra, including as to expected cost synergies, accretion and equity appreciation, production levels and WTI break-even price
expectations for each of the entities on a stand-alone basis; the terms and exchange ratio of the proposed combination between Obsidian Energy and Bonterra; that the Offer is the better option compared to adding more debt to an already over-levered
balance sheet for Bonterra shareholders; the ascribed share price market trading multiple to the combined entity and the resulting benefit to Obsidian Energy and Bonterra shareholders; that the Pro Forma Company would be positioned for future
accretive bolt-on acquisitions; and the conditions that the Offer will be subject to and possible reasons that the Offer would not be made. With respect to forward-looking statements contained in this document, Obsidian Energy has made assumptions
regarding, among other things: that both Obsidian Energy and Bonterra, each of which are subject to short term extensions on their respective senior revolving credit facilities continue to obtain extensions in respect of their thereof and otherwise
continue to satisfy the applicable covenants under such facilities, including following the completion of the Offer and any subsequent second step transaction, the ability to complete the Offer and the proposed combination, integrate Obsidian
Energy’s and Bonterra’s respective businesses and operations and realize financial, operational and other synergies from the proposed combination; that each of Obsidian Energy, Bonterra and, following the completion of the Offer, the
combined entity will have the ability to continue as a going concern going forward and realize its assets and discharge its liabilities in the normal course of business; the impact of regional and/or global health related events, including the
ongoing COVID-19 pandemic, on energy demand; that the combined entity’s operations and production will not be disrupted by circumstances attributable to the COVID-19 pandemic and the responses of governments and the public to the pandemic;
global energy policies going forward, including the continued agreement of members of OPEC, Russia and other nations to adhere to existing production quotas or further reduce production quotas; Obsidian Energy’s ability to execute on its plans
as described herein and in its other disclosure documents and the impact that the successful execution of such plans will have on Obsidian Energy and, following the combination, the combined entity and the combined entities’ respective
stakeholders; that the combined entity’s shares will trade at a multiple comparable to peers; that the current commodity price and foreign exchange environment will continue or improve; future capital expenditure levels; future crude oil,
natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future crude oil, natural gas liquids and natural gas production levels, including that
we will not be required to shut-in additional production due to the continuation of low commodity prices or the further deterioration of commodity prices and our expectations regarding when commodity prices will improve such that shut-in properties
can be returned to production; future exchange rates and interest rates; future debt levels; the ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including weather, wild
fires, infrastructure access and delays in obtaining regulatory approvals and third party consents; the combined entity’s ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; the combined
entity’s ability to market our oil and natural gas successfully to current and new customers; the combined entity’s ability to obtain financing on acceptable terms; and the combined entity’s ability to add production and reserves
through our development and exploitation activities. Although Obsidian Energy believes 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 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 forward-looking statements contained herein will not be correct, which may cause actual performance and financial results to differ materially from any estimates or projections of future performance or results expressed or implied by such
forward-looking statements. Such assumptions, risks and uncertainties are described in Obsidian Energy’s Annual Information Form and other public filings, available in Canada on SEDAR at www.sedar.com and in the United States on EDGAR at
www.sec.com. Further details on assumptions can also be found in the End Notes section of this presentation. Readers are cautioned that such assumptions, risks and uncertainties should not be construed as exhaustive. The forward-looking statements
contained in this document speak only as of the date of this document (September 8, 2020). Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update any forward-looking statements. The
forward-looking statements contained in this document are expressly qualified by this cautionary statement. 36