Obsidian Energy puts itself on the block
OBSIDIAN ENERGY Ltd.’s board of directors has determined that it is in the best interest of the company and its stakeholders to initiate a formal process to explore strategic alternatives.
This process is intended to evaluate the company’s strategic options and alternatives to maximize shareholder value. Such strategic alterna
tives may include, but are not limited to, a corporate sale, merger or other business combination, a disposition of all or a portion of the company’s assets, a recapitalization, refinanc ing of it s cap i tal structure, or any combination of the foregoing. strategic
While the review outcome process of will the depend on the opportunities which arise within such process (and there is no assurance of any particular outcome), Obsidian Energy believes that, given the company’s position as the largest producer and holder of Cardium acreage, the initiation of the strategic review process will allow for consideration of consolidation within the Cardium play in Alberta. Furthermore, such consolidation, if possible, may allow for the creation of additional scale, efficiency and financial strength.
The board will undertake a broad review of the potential alternatives to enhance stakeholder value and has hired Tudor, Pickering, Holt & Co. as its financial adviser in connection with this review and analysis of strategic alternatives. Given the nature of the strategic alternatives process, the company does not intend to provide updates until such time as the board approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is necessary or appropriate.
John Brydson, Maureen Ellen Cormier Jackson, Raymond D Crossley, Michael J Faust, William Alva Friley, Edward Hume Kernaghan, Stephen E Loukas, Gordon Malcolm Ritchie
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