Ob­sid­ian En­ergy puts it­self on the block

Stockwatch Daily - - FRONT PAGE - An anony­mous di­rec­tor re­ports

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

(OBE) Shares: 72,983,476

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