Obsidian Energy Ltd. announced the successful closing of its previously announced divestiture of operated Pembina assets to InPlay Oil Corp. The total consideration received was approximately $320 million, with an effective date of December 1, 2024.
The consideration included $211 million in cash after interim closing adjustments, 54.8 million common shares of InPlay valued at $85 million, and InPlay's 34.6 percent working interest in the Willesden Green Cardium Unit #2 oil field, valued at $15 million. The cash proceeds were immediately used to pay down debt, reducing the amount drawn on Obsidian's syndicated credit facility to approximately $30 million from a reduced $235 million facility.
In conjunction with the closing, the company's semi-annual borrowing base redetermination was completed, extending the revolving period and maturity dates of the credit facility by a year to May 31, 2026, and May 31, 2027, respectively. Obsidian Energy now owns approximately 33 percent of the issued and outstanding InPlay Shares, and its President and CEO, Stephen Loukas, along with its Senior Vice President and CFO, Peter Scott, were appointed to InPlay's board of directors.
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