Obsidian Energy Corporate Presentation February 2018 Important - PowerPoint PPT Presentation

Obsidian Energy Corporate Presentation February 2018

Important Notices to the Readers This presentation should be read in conjunction with the Company's audited consolidated financial statements, management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2017. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated. Certain financial measures included in this presentation 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; accordingly, they may not be comparable to similar measures provided by other issuers. This presentation also contains oil and gas disclosures, various industry terms, and forward-looking statements, including various assumptions on which such forward-looking statements are based and related risk factors. Please see the Company's disclosures located in the Appendix at the end of this presentation for further details regarding these matters. ObsidianEnergy.com | TSX/NYSE: OBE 2

Obsidian Energy Corporate Profile Corporate Metrics Share Price $/share $1.28 Jan. 31 st , 2018 Peace OBE-TSX Daily Volume MM 1.0 River % of shares outstanding 0.2% 4,823 boe/d Q3 2017 OBE -NYSE Daily Volume MM 1.3 Net Sections: 235 % of shares outstanding 0.3% Market Capitalization $MM $645 Deep Basin Net Debt $MM $410 Cardium New Wells on Q4 2017 Enterprise Value $MM $1,056 18,876 boe/d Q3 2017 Net Sections: 700 Net Sections: 450 FY 2018 Guidance Production Productio boe/d 29,000-30,000 Growth Growth % 5% Ind Index Map Map Total Expendi Total Expenditures Alberta Capital Expenditures $MM $125 Decommissioning $MM $10 Viking Expenses Expense 1,766 boe/d Q3 2017 Operating Expense $/boe $13.00 - $13.50 Net Sections: 170 G&A Expense $/boe $2.00-$2.50 Legacy Asset Production of 4,701 boe/d in Q3 2017, sold 2,200 boe/d of this production in early 2018. See press release titled “Obsidian Energy Announces Legacy Asset Disposition” for details See end notes ObsidianEnergy.com | TSX/NYSE: OBE 3

A Balanced Portfolio with Significant Optionality Cardium Cardium Meaningful Free Meaning Free Cash Flow Gener Cash Flow Generation on Waterfloo Waterf lood Appro Approach with Primary Option ch with Primary Optionality ality LOW DECLINE BASE Peace River Peace River PRODUCTION & STABLE CASH FLOW Manuf Manufact ctur ured ed Cold Flow, Cold Flow, High Rate & High Rate & Low Cost Low Cost Multiple Egre Multiple Egress Options ss Options BALANCED SHORT & INTERMEDIATE CYCLE Alber Alberta Viking Viking DEVELOPMENT Shor Short Cycle Investment Cycle Investment to Togg to Toggle Growth le Growth LIQUIDS WEIGHTED, Industry Industry Leading Leading Initial Prod Initial Production uction Rates Rates SUSTAINABLE Deep Basin Deep Basin GROWTH Multi Horizo Multi Horizon Pote n Potential ntial Focus Highly Econo Focus Highly Economic Mannville Develop ic Mannville Development ent 4

Legacy Disposition Highlights Sale of a significant portion our non-core legacy assets in • exchange for the assumption of abandonment and Legacy Asset Disposition Lands reclamation liabilities R1W5 R1 R20 R2 R10 R1 R1W4 R1 • Accretive to cash flow based on operating costs savings SUGDEN SUGDE and high liquids weighting INDEX M IN MAP Reduces discounted decommissioning liabilities by approx. • $25MM, improves corporate netback by approx. $1.50/boe T55 T55 Lega gacy cy Pack Package and increases corporate liquids to approx. 65 percent OBE OBE la land nd Midpoint Midpoint of of Produ Production Guida Guidance ce (boe/d) (boe/d) Midpoint of dpoint of Opex Opex Guida Guidance ce ($/bo ($/boe) $2 $20.00 40,000 000 3 1,500 3 1 2 ,000 000 2 9 2 9 ,500 T45 T45 $1 $13.75 $ 0.50 $ 0 $1 $13.25 $1 $15.00 30,000 30 20,000 20 $10. 0.00 00 BASHAW BASHAW 10 10,000 $5.00 $5 MIKWAN MIKWAN 0 $0 $0.00 20 2018E Le Legacy 2018E 20 2018E 20 Legacy Le 20 2018E T35 T35 Production Pr Ad Adjustme ment Proforma Pr Opex Op Ad Adjustment Proforma O Pr Opex Prod oduction on WI WIMBOR MBORNE NE Liq Liquids Weig ids Weight (%) (%) Decom Decommis ission oning Liabili g Liabilitie ties ($MM) ($MM) $250 $2 100% 10 ALSASK ALSASK $ 18 1 $ 1 8 1 $ 2 5 $ 2 $200 $2 $ 15 6 $ 1 3 % 3 % 6 5 % 6 5 75 75% 6 2 6 2 % $150 $1 50% 50 T25 T2 $1 $100 45 kms 45 kms AC ACAD ADIA IA $5 $50 25 25% 30 miles 30 miles $0 $0 0% 0% Q3 Q3 2 2017 Le Legacy Q3 Q3 2 2017 20 2018E Legacy Le 20 2018E Decommissioning De Ad Adjustment Proforma Pr Liquids W Li Weight Adjustment Ad Proforma L Pr Liqu quids Liabilities Li Decommissi ssioning We Weight Liabilit itie ies See end notes ObsidianEnergy.com | TSX/NYSE: OBE 5

Operations Update Demonstrates Continued Operational Delivery The plan we outlined at the beginning of the year has played out nicely • Portfolio showed its ability to deliver • FY 2017 De-risked and helped shape 2018 Production program through the drill bit boe/d Entering 2018 with operational momentum 32,000 PEACE RIVER FY 2017 FY 2017 WILLESDEN GREEN Confirmed Upside 11-03-43-8W5 Pad Production of oduction of in Heart of Acreage 31,700 boe/d 31,7 0 boe/d 31,500 R8W5 R8W5 Beat Guidan Beat Gu idance ce T43 T43 31,000 30,500 5 kms 5 k Production 3 miles 3 miles Guidance 30,500 - 31,500 11-03-43-8W5 CARDIUM 500 boe/d per well 4 well Hz pad For three wells from our second 30,000 On Production Jan 3, 2018 half program Average 700 boe/d Average 700 boe/d 2018 P Progra ogram C m Commencing mmencing per well per well in Following Weeks in Following Weeks See end notes 6

Low Decline Rate Underpins Growth 16% Corporate Base Production Decline Rate Cardium Asset Under Historical Waterflood Capital Efficiencies of $6,500/boe/d on 2017 Optimization Projects Optimization of existing base wellbores Corporate Base Production boe/d 35,000 30,000 25,000 22% 22% Base + Base + 2017 Develo 2017 Developm pment Dec ent Decline Rate e Rate 20,000 2017 Base Prod 2017 Base Production & 2017 Development & 2017 Development 15,000 Declines 16% Declin 16% in 2019 in 2019 16% Base Decline 16% Base Dec e Rate Rate 10,000 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Base Production 2017 Development 2018 Development See end notes ObsidianEnergy.com | TSX/NYSE: OBE 7

Waterflood Performance is Impressive Pembina Waterflood Activity OBE Op OBE Operated Card rdiu ium unit Cardium Decline Rate lowered from • OBE Card OBE C rdiu ium land Drilled 8 new Wate terfl rflood od a activity ty si since Q3 2016 injectors in 2017 Ac Actively managed tively managed inj. inj. approximately 20% to 5% 20 2017 17 OBE OBE well ll R10 R10 R9W5 Waterflood and base optimization • projects initiated in 2016 T48 T48 Cardium Base Production Decline boe/d Optimized Waterflood 20,000 T47 T47 Actual 10 10 k kms 17,500 Converted and reactivated 37 Decline 5% wells in PCU #9 since Q3 2016 Decline 20% 5 miles 5 miles Drilled 8 new injectors to 15,000 support 2017 new drills Decline 10% Actively managing more than 120 existing injectors Decline 20% 12,500 10,000 Jan-16 Jul-16 Jan-17 Jul-17 Base with No Waterflood Support Base with Waterflood Support Actual Base Production with Waterflood and Optimization Support See end notes ObsidianEnergy.com | TSX/NYSE: OBE 8

R10 R10W5 R5 R5 Early Cardium Rates Above T5 T50 Type Curve WILLESDEN GREEN 11-03-43-8W5 Pad PCU #9 Program is • PEMBINA >100 boe/d above type R8W5 R8W5 curve T43 T43 Crimson (Willesden • PCU#9 6-35-48-9W5 Pad R10W5 R10W5 5 k 5 kms Green) wells on WILLESDEN 3 miles 3 miles T45 T4 GREEN production by year end T48 T48 11-03-43-8W5 CARDIUM 4 well Hz pad Now on production T47 T47 5 k 5 kms 15 kms 15 kms 3 miles 3 miles 10 miles 10 miles 100/15-02-48-9W5 On Production: 10/8/2017 Initial Stabilized Rate: 195 boe/d 102/13-02-48-9W5 INDEX M IN MAP On Production: 10/8/2017 Initial Stabilized Rate: 140 boe/d 103/14-02-48-9W5 OBE land T40 T40 OBE producing well On Production: 10/8/2017 Industry HZ well Initial Stabilized Rate: 205 boe/d ObsidianEnergy.com | TSX/NYSE: OBE 9