CALGARY, March 20, 2018 /CNW/ – OBSIDIAN ENERGY LTD. (TSX – OBE, NYSE – OBE.BC) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) comments on FrontFour Capital Group LLC’s (“FrontFour“) intention to nominate four candidates to stand for election at the Company’s 2018 Annual General Meeting.
Jay Thornton, Chairman of the Obsidian Energy Board of Directors (the “Board“), commented, “We are disappointed that after several months of attempting to work constructively with FrontFour, including the addition of Gord Ritchie to the Board at their suggestion, FrontFour has chosen to put its interests ahead of other shareholders at a critical time in the Company’s history by starting a costly, time consuming, and distracting proxy fight. Obsidian Energy has a refreshed Board with significant shareholder representation that is committed to value creation in both the short and long term. We recognize that status quo is not an option and have been pursuing attractive commercial opportunities to reward investors. FrontFour’s unnecessary agenda only adds undue risk to the execution of these outcomes.”
Gordon Ritchie, one of the newest members of the Board stated, “I am in a position to say the strategic points raised by FrontFour have undergone extensive scrutiny by management and the Board. As communicated to FrontFour and all shareholders, we are aggressively looking at all options to increase shareholder value. This is a challenging investment environment for all Canadian E&P, but I am confident when I say Obsidian Energy is on the right track and David French and his group are the right team to execute.”
Obsidian Energy will have more to say on FrontFour’s agenda in due course. In the meantime, the Board and management team remain focused on executing our strategic plan to deliver strong results on behalf of all shareholders.
Shareholders do not need to take any action at this time regarding voting at the Annual General Meeting.