# EDGAR Filing Document

**Accession Number:** 0001334388
**File Stem:** 0001193125-25-233433
**Filing Date:** 2025-10
**Character Count:** 247265
**Document Hash:** 2308585a24d5619e8d818d6530795fc1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-233433.hdr.sgml**: 20251007

**ACCESSION NUMBER**: 0001193125-25-233433

**CONFORMED SUBMISSION TYPE**: S-8

**PUBLIC DOCUMENT COUNT**: 26

**FILED AS OF DATE**: 20251007

**DATE AS OF CHANGE**: 20251007

**EFFECTIVENESS DATE**: 20251007

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OBSIDIAN ENERGY LTD.
- **CENTRAL INDEX KEY:** 0001334388
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-8
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290751
- **FILM NUMBER:** 251379827

**BUSINESS ADDRESS:**
- **STREET 1:** 207 - 9TH AVENUE S.W.
- **STREET 2:** SUITE 200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 1K3
- **BUSINESS PHONE:** (403) 777-2500

**MAIL ADDRESS:**
- **STREET 1:** 207 - 9TH AVENUE S.W.
- **STREET 2:** SUITE 200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 1K3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PENN WEST PETROLEUM LTD.
- **DATE OF NAME CHANGE:** 20110125

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PENN WEST ENERGY TRUST
- **DATE OF NAME CHANGE:** 20050727

**As filed with the United States Securities and Exchange Commission on October 7, 2025** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-8** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## OBSIDIAN ENERGY LTD.
**(Exact Name of Registrant as Specified in Its Charter)** 

---

| | |
|:---|:---|
| **Alberta, Canada** | **Not Applicable** |
| **(State or Other Jurisdiction of<br>Incorporation or Organization)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

**Suite 200, 207 - 9th Avenue S.W., Calgary, Alberta, Canada T2P 1K3; (403) 777-2500** 

**(Address of Principal Executive Offices)** 

**Obsidian Energy Ltd. Stock Option Plan, amended and restated as of July 30, 2020** 

**Obsidian Energy Ltd. Restricted and Performance Share Unit Plan, amended and restated as of July 30, 2020** 

**Employee Retirement / Savings Plan – Equity and Cash Component, effective October 31, 2018** 

**(Full Title of the Plan)** 

**Puglisi & Associates, 850 Library Ave, Suite 204, Newark, Delaware 19711; (302)-738-6680** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

---

| | |
|:---|:---|
| **Stephen E. Loukas**<br> **President and Chief Executive Officer**<br> **Obsidian Energy Ltd.**<br> **Suite 200, 207 - 9th Avenue S.W.**<br> **Calgary, Alberta**<br> **Canada T2P 1K3**<br> **(403) 777-2500** | **Daniel M. Miller<br>Dorsey & Whitney LLP**<br> **855-1095 West Pender Street**<br> **Vancouver, British Columbia**<br> **Canada V6E 2M6**<br> **(604) 630-5199** |

---

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated Filer | ☒ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

------

**EXPLANATORY NOTE** 

This Registration Statement on Form S-8 (this **"Registration Statement"**) relates to a maximum of 471,300 common shares (the **"Common Shares"**) of Obsidian Energy Ltd. (the **"Company"**), issuable by the Company under its Stock Option Plan, amended and restated as of July 30, 2020, a maximum of 707,100 Common Shares of the Company issuable under its Restricted and Performance Share Unit Plan, amended and restated as of July 30, 2020 and a maximum of 50,000 Common Shares of the Company issuable under its Employee Retirement / Savings Plan – Equity and Cash Component, effective October 31, 2018.

This Registration Statement also includes a prospectus prepared in accordance with General Instruction C of Form S-8 and in accordance with the requirements of Part I of Form F-3 (the "**Reoffer Prospectus**"). The Reoffer Prospectus may be used for reofferings and resales of up to 1,304,806 Common Shares that may be deemed to be "restricted securities" and/or "control securities" under the Securities Act and the rules and regulations promulgated thereunder that were issued or are issuable to the selling securityholder identified in the Reoffer Prospectus (the "**Selling Securityholder**"). The Common Shares included in the Reoffer Prospectus were issued to the Selling Securityholder on a private placement basis prior to the filing of this Registration Statement.

------

**PART I** 

**INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS** 

The information specified in Item 1 and Item 2 of Part I of Form S-8 is omitted from this Registration Statement in accordance with the provisions of Rule 428 under the Securities Act and the introductory note to Part I of Form S-8. The documents containing the information specified in Part I of Form S-8 will be delivered to the participants in the equity benefit plans covered by this Registration Statement as specified by Rule 428(b)(1) under the Securities Act.

------

**REOFFER PROSPECTUS**![LOGO](g948515g1003074040904.jpg)

**Up to 1,304,806 common shares offered by the selling securityholder** 

This prospectus relates to the offer and sale from time to time by the person identified as a selling securityholder in the section entitled "*Selling Securityholder*" in this prospectus of up to 1,304,806 common shares of Obsidian Energy Ltd. previously issued by us to the selling securityholder. We are not selling any securities under this prospectus and will not receive any proceeds from the sale of the common shares by the selling securityholder under this prospectus.

The selling securityholder may offer all or part of the securities for resale from time to time through public or private transactions, at either prevailing market prices or at privately negotiated prices. These securities are being registered to permit the selling securityholder to sell securities from time to time, in amounts, at prices and on terms determined at the time of offering. The selling securityholder may sell these securities through ordinary brokerage transactions, in underwritten offerings, directly to market makers of our shares or through any other means described in the section entitled "*Plan of Distribution*" herein. In connection with any sales of securities offered hereunder, the selling securityholder, any underwriters, agents, brokers or dealers participating in such sales may be deemed to be "underwriters" within the meaning of the Securities Act of 1933, as amended (the "**Securities Act**"). We are registering these securities for resale by the selling securityholder, or their donees, pledgees, transferees, distributees or other successors-in-interest selling our common shares, or interests in our common shares received after the date of this prospectus from the selling securityholder as a gift, pledge, partnership distribution or other transfer.

Our common shares are listed on the Toronto Stock Exchange under the symbol "OBE" and on the NYSE American under the symbol "OBE". On October 6, 2025, the closing price for our common shares on the Toronto Stock Exchange was CAD$9.42 and on the NYSE American was US$6.76.

Our principal executive offices are located at Suite 200, 207 - 9th Avenue S.W., Calgary, Alberta, Canada T2P 1K3, Telephone Number: (403) 777-2500.

**Investing in our common shares involves risks. See "*[Risk Factors](#tx948515_2)*" on page 1 of this prospectus and other risk factors contained in the documents incorporated by reference herein, including our Annual Report on Form 40-F for the year ended December 31, 2024, for a discussion of information that should be considered in connection with an investment in our securities.** 

**We are a "foreign private issuer" as defined under the U.S. federal securities laws and, as such, may elect to comply with certain reduced public company disclosure and reporting requirements. See "Where You Can Find More Information".** 

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offence.** 

The date of this prospectus is October 7, 2025.

------

**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  [ABOUT THIS PROSPECTUS](#tx948515_1) | 1 |
|  [RISK FACTORS](#tx948515_2) | 1 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#tx948515_3) | 1 |
|  [DOCUMENTS INCORPORATED BY REFERENCE](#tx948515_4) | 2 |
|  [ENFORCEABILITY OF CIVIL LIABILITIES](#tx948515_5) | 2 |
|  [FORWARD-LOOKING STATEMENTS](#tx948515_6) | 3 |
|  [OBSIDIAN ENERGY LTD.](#tx948515_7) | 6 |
|  [USE OF PROCEEDS](#tx948515_8) | 6 |
|  [MATERIAL CHANGES](#tx948515_9) | 6 |
|  [CAPITALIZATION AND INDEBTEDNESS](#tx948515_10) | 6 |
|  [SELLING SECURITYHOLDER](#tx948515_11) | 6 |
|  [PLAN OF DISTRIBUTION](#tx948515_12) | 7 |
|  [DESCRIPTION OF SECURITIES TO BE REGISTERED](#tx948515_13) | 8 |
|  [DESCRIPTION OF ARTICLES AND BY-LAWS](#tx948515_14) | 8 |
|  [EXPENSES](#tx948515_15) | 12 |
|  [INDEMNIFICATION](#tx948515_16) | 12 |
|  [LEGAL MATTERS](#tx948515_17) | 13 |
|  [EXPERTS](#tx948515_18) | 13 |

---

**Neither we nor the selling securityholder have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or any accompanying prospectus supplement that we have prepared. We and the selling securityholder take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the securities offered hereby and only under circumstances and in jurisdictions where it is lawful to do so. No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this prospectus or any applicable prospectus supplement. This prospectus is not an offer to sell securities, and it is not soliciting an offer to buy securities, in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement is accurate only as of the date on the front of those documents only, regardless of the time of delivery of this prospectus or any applicable prospectus supplement, or any sale of a security. Our business, financial condition, results of operations and prospects may have changed since those dates.** 

------

**ABOUT THIS PROSPECTUS** 

**You should rely only upon the information contained in or incorporated by reference into this prospectus and on other information included in the registration statement of which this prospectus forms a part. References to this "prospectus" include documents incorporated by reference into this prospectus. We have not authorized anyone to provide you with information that is different than the information included in or incorporated by reference into this prospectus. The information incorporated by reference into this prospectus is current only as of its date. We are not making an offer of common shares in any jurisdiction where the offer is not permitted by law.** 

In this prospectus (excluding the documents incorporated by reference into this prospectus), unless the context requires otherwise, references to "**we**", "**us**", "**our**" and the "**Company**" refer to Obsidian Energy Ltd. and the subsidiaries through which it operates its business.

Our consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and are stated in Canadian dollars. In this prospectus, unless otherwise indicated, references to "**$**" or "**US$**" indicate references to United States dollars. References to "**CAD$**" indicate references to Canadian dollars. On October 6, 2025, the exchange rate according to the Bank of Canada was US$1.00 = CAD$1.3955.

Before you invest, you should read this prospectus together with the information incorporated by reference into this prospectus and the additional information described below under the heading "*Where You Can Find More Information*". You should refer to the registration statement of which this prospectus forms a part and the exhibits to the registration statement for further information.

**RISK FACTORS** 

Investing in our common shares involves risks. Before you decide to invest in our common shares, you should carefully consider all risks described in the documents incorporated by reference into this prospectus, including subsequent documents incorporated by reference into this prospectus. Discussions of certain risks and uncertainties affecting us are provided under the heading "*Risk Factors*" beginning on page 31 of our Annual Information Form for the fiscal year ended December 31, 2024, filed as Exhibit 99.1 to our Annual Report on Form 40-F for the year ended December 31, 2024, which was filed with the United States Securities and Exchange Commission (the "**SEC**") on February 25, 2025, as updated from time to time by our filings under the United States Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), and other information contained in or incorporated by reference into this prospectus from time to time.

**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed under the Securities Act a registration statement on Form S-8 relating to the common shares. This prospectus forms a part of the registration statement. This prospectus does not contain all of the information included in the registration statement, certain portions of which have been omitted as permitted by the rules and regulations of the SEC. For further information about us and our common shares you are encouraged to refer to the registration statement and the exhibits that are incorporated by reference into it.

We are subject to the information and periodic reporting requirements of the Exchange Act, applicable to "foreign private issuers" (as such term is defined in Rule 405 under the Securities Act) and we fulfill our obligations with respect to those requirements by filing or furnishing reports with the SEC. The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding our company and other issuers that file electronically with the SEC. The address of the SEC internet site is www.sec.gov/edgar. This information is also available on our website at www.obsidianenergy.com. The information on our website is not incorporated by reference into the registration statement and should not be considered a part of the registration statement or this prospectus.

------

We are a foreign private issuer, and therefore are exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, and our group's officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act relating to their purchases and sales of our group's securities. In addition, we are not required under the Exchange Act to file annual, quarterly and current reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

**DOCUMENTS INCORPORATED BY REFERENCE** 

The following documents filed with or furnished to the Securities and Exchange Commission are specifically incorporated by reference into, and form a part of, this prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Our Annual Report on Form 40-F for the fiscal year ended [December 31, 2024](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/1334388/000095017025026337/obe-20241231.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Our Current Reports on Form 6-K, furnished on [January 14, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025005134/january_14_2025_press_re.htm) , [February 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025012999/february_4_2025_press_re.htm) , [February 20, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025023834/february_19_2025_press_r.htm) , [February 21, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025024663/material_contracts.htm) , [February 25, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025026343/2024_ye_filing_press_rel.htm) , [February 25, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025026791/feb_25_2025_pr_-_ye_fili.htm) , [February 26, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025027418/feb_26_2025_pr_-_note_re.htm) , [February 27, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025028597/feb_27_2025_pr_-_ncib.htm) , [February 28, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025029652/feb_27_2025_pr_-_pembina.htm) , [March 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025031857/march_4_material_contrac.htm) , [March 14, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025039183/mar_14_pr_-_fcf_offer.htm) , [April 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025051402/2025_management_info_cir.htm) , [April 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025051472/april_7_2025_pembina_clo.htm) , [April 30, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025061246/q1_2025_results_and_agsm.htm) , [May 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025065268/q1_2025_obe_6k_filing.htm) , [May 8, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025066608/agm_voting_results.htm) , [May 23, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025076891/may_23_2025_-_arca.htm) , [June 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025081479/operations_update_releas.htm) , [July 10, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025094947/h2_2025_guidance_release.htm) , [July 16, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025096137/non-binding_offer_releas.htm) , [July 30, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025100005/q2_2025_obe_6k_filing.htm) , [July 31, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025100678/obe_notes_repurchase_lau.htm) , [August 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025101752/ipo_share_repurchase.htm) , [August 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025105230/ipo_share_closing.htm) , [August 12, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025107446/material_change_report.htm) , [August 15, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000003/fcf_offer_closing.htm) , [August 18, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000005/notes_repurchase_-_aug_l.htm) , [September 2, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000008/notes_closing_sep_2.htm) and [September 8, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025113414/h2_capital_program_updat.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Our registration statement on Form 8-A relating to our common shares,
filed on [January 21, 2022](http://www.sec.gov/Archives/edgar/data/1334388/000119312522014790/d300684d8a12b.htm) .

In addition, all subsequent Annual Reports on Form 20-F, Form 40-F or Form 10-K, and all subsequent filings on Form 10-Q or Form 8-K, that we file pursuant to the Exchange Act prior to the termination of this offering, are hereby incorporated by reference into this prospectus. Also, we may incorporate by reference future reports on Form 6-K that we furnish subsequent to the date of this prospectus by stating in those Form 6-K's that they are being incorporated by reference into this prospectus.

Any statement contained in a document incorporated by reference into this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus, in one of those other documents or in any other later filed document that is also incorporated by reference into this prospectus modifies or supersedes that statement. Any such statement so modified shall not be deemed, except as so modified, to constitute a part of this prospectus. Any such statement so superseded shall be deemed not to constitute a part of this prospectus.

Any person receiving a copy of this prospectus, including any beneficial owner, may obtain without charge, upon written or oral request, a copy of any of the documents incorporated by reference into this prospectus, except for the exhibits to those documents unless the exhibits are specifically incorporated by reference into those documents. Requests should be directed to our principal executive offices, Suite 200, 207 - 9th Avenue S.W., Calgary, Alberta, Canada T2P 1K3, Attention: Investor Relations; Telephone Number: 1-888-770-2633.

**ENFORCEABILITY OF CIVIL LIABILITIES** 

We are a corporation organized under the laws of Alberta, Canada and our principal offices are located in Calgary, Alberta, Canada. The enforcement by investors of civil liabilities under the United States federal or state securities laws may be affected adversely by the fact that we have been organized under the laws of Alberta, Canada, that most of our officers and directors are residents of Canada, that some or all of the experts named in this prospectus are residents of Canada, and that all or a substantial portion of their assets and our assets are located outside of the United States. As a result, it may be difficult for United States investors to effect service of process within the United States upon us and upon those directors, officers or experts who are not residents of the United States, or to realize in the United States upon judgments of courts of the United States, predicated upon civil liability of such persons under United States federal or state securities laws. There is doubt as to the enforceability in Canada against us or against our directors, officers or experts who are not residents of the United States, in original actions or in actions for enforcement of judgments of United States courts of liabilities based solely upon the United States federal or state securities laws. We have appointed Puglisi & Associates, 850 Library Ave, Suite 204, Newark, Delaware 19711, as our agent in the United States upon which service of process against us may be made in any action based on this prospectus.

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**FORWARD-LOOKING STATEMENTS** 

This prospectus and the documents incorporated by reference herein include forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this prospectus and the documents incorporated by reference herein contain, without limitation, forward-looking statements pertaining to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our updated syndicated credit facility and the possible reconfirmation, redetermination and term-out dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• details of our ongoing acquisition, disposition, farm-out and financing
strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maturity date of our Senior Unsecured Notes (as defined in our Annual Information Form for the fiscal year
ended December 31, 2024, filed as Exhibit 99.1 to our Annual Report on Form 40-F for the year ended December 31, 2024);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations for the industry that we operate in for 2025 and beyond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the operational and financial impact that climate change regulations in the
jurisdictions in which we operate will have on us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding First Nation relations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations on what our environmental programs will entail, how we expect to monitor and ensure compliance
with our policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations in connection with decommissioning and reclamation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the belief that we have several low-cost opportunities to reduce our
emissions intensity profile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that the Corporation is unable to predict what additional legislation or amendment governments may enact in the
future and what will need to be reported or remitted and in what time frame and the possibility that we could face increases in costs in order to comply with emissions legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we are committed to mitigating the environmental impact from our operations, and to involving stakeholders
throughout the exploration, development, production and abandonment process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we will seek to drive improvement and to ensure compliance with our environmental policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we seek to communicate our commitment to environmental stewardship to our stakeholders in order to always be
held accountable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we continue to work cooperatively with governments to develop an approach to deal with climate change issues
that protects the industry's competitiveness, limits the cost and administrative burden of compliance, and supports continued investment in the oil and gas sector;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our belief that the trend towards heightened and additional standards in environmental legislation and regulation
will continue and our expectation that we will be making increased expenditures as a result of the expansion of our operations and the adoption of new legislation relating to the protection of the environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our assessment of the operational and financial impacts that certain risks factors could have on us and the value
of our common shares should such risk factors materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the quantity of our oil, natural gas liquids and natural gas reserves, the recoverability thereof, and the net
present values of future net revenue to be derived from our reserves using forecast prices and costs, including the disclosure set forth in Appendix A-3 to our Annual Information Form for the fiscal year ended
December 31, 2024, filed as Exhibit 99.1 to our Annual Report on Form 40-F for the year ended December 31, 2024, under "*Statement of Reserves Data and Other Oil and Gas Information – Reserves Data* ";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of royalties, operating costs, development costs, abandonment and reclamation costs and income taxes
that we will incur in connection with the production of our reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our outlook for oil, natural gas liquids and natural gas prices;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding future currency exchange rates and inflation rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding funding the development of our reserves and impact if we failed to develop those
reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the timing for developing our proved undeveloped reserves and probable undeveloped
reserves and the amount of future capital expenditures required to develop such reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the significant economic factors and other significant uncertainties that could affect
our reserves data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of net well bores, facilities and the length of pipeline in respect of which we expect to incur
abandonment and reclamation costs and the total amount of such costs that we expect to incur and the timing thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the details of our exploration and development plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations for our capital program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the expected lands that will be surrendered unless we qualify them in some manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding when we will be required to pay income taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our intention to continue to actively identify and evaluate hedging opportunities in order to reduce our exposure
to fluctuations in commodity prices and protect our future cash flows and capital programs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nature of, effectiveness of, and benefits to be derived from, our future marketing arrangements and risk
management strategies.

Although we believe that the expectations reflected in the forward-looking statements contained or incorporated by reference in this prospectus, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included or incorporated by reference in this prospectus, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements contained or incorporated by reference herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada
continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on
oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed
or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the
Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing
volatility in global financial markets, and limiting access to financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that we change our budgets (including our capital expenditure budgets) in response to internal
and external factors, including those described herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that the Company will not be able to continue to successfully execute our business plans and
strategies in part or in full, and the possibility that some or all of the benefits that the Company anticipates will accrue to our Company and our stakeholders as a result of the successful execution of such plans and strategies do not materialize
(such as our inability to return capital to shareholders and/or reduce debt levels to the extent anticipated or at all);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that the Company ceases to qualify for, or does not qualify for, one or more existing or new
government assistance programs, that the impact of such programs falls below our expectations, that the benefits under one or more of such programs is decreased, or that one or more of such programs is discontinued;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact on energy demand and commodity prices of regional and/or global health related events and the
responses of governments and the public thereto, including the risk that the amount of energy demand destruction and/or the length of the decreased demand exceeds our expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that there is another significant decrease in the valuation of oil and natural gas companies and their
securities and in confidence in the oil and natural gas industry generally, whether caused by regional and/or global health related events, the worldwide transition towards less reliance on fossil fuels and/or other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that the financial capacity of the Company's contractual counterparties is adversely affected and
potentially their ability to perform their contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that the revolving period and/or term out period of our credit facility and the maturity date of
our senior unsecured notes is not extended (if necessary), that the borrowing base under our credit facility is reduced, that the Company is unable to renew or refinance our credit facilities on acceptable terms or at all and/or finance the
repayment of our senior unsecured notes when they mature on acceptable terms or at all and/or obtain new debt and/or equity financing to replace our credit facilities and/or senior unsecured notes or to fund other activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that we are unable to complete one or more repurchase offers pursuant to our senior unsecured
notes when otherwise required to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that we are forced to shut-in production, whether due to
commodity prices decreasing, extreme weather events such as wild fires, inability to access our properties due to blockades or other activism, or other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that OPEC and other nations fail to agree on and/or adhere to production quotas from time to time that
are sufficient to balance supply and demand fundamentals for oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that
those conditions have on commodity prices and our access to capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• industry conditions, including fluctuations in the price of oil, natural gas liquids and natural gas, price
differentials for oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in foreign exchange rates, including the impact of the Canadian/U.S. dollar exchange rate on our
revenues and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in interest rates, including the effects of interest rates on our borrowing costs and on economic
activity, and including the risk that elevated interest rates cause or contribute to the onset of a recession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that our costs increase due to inflation, supply chain disruptions, scarcity of labour and/or other
factors, adversely affecting our profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires, flooding and droughts (which could limit our access to the water we require for our operations));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that wars and other armed conflicts adversely affect world economies and the demand for oil and natural
gas, including the ongoing war between Russia and Ukraine and/or hostilities in the Middle East;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the possibility that fuel conservation measures, alternative fuel requirements, increasing consumer demand for
alternatives to hydrocarbons, government mandates requiring the sale of electric vehicles and/or electrification of the power grid, and technological advances in fuel economy and renewable energy generation systems could permanently reduce the
demand for oil and natural gas and/or permanently impair the Company's ability to obtain financing and/or insurance on acceptable terms or at all, and the possibility that some or all of these risks are heightened as a result of the response
of governments, financial institutions and consumers to a regional and/or global health related event and/or the influence of public opinion and/or special interest groups; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors described under "*Risk Factors*" in this prospectus and the documents
incorporated by reference herein and in our public filings available in the United States at www.sec.gov/edgar.

Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained and incorporated by reference in this prospectus speak only as of the date of this prospectus or the document incorporated by reference, as applicable. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained and incorporated by reference in this prospectus are expressly qualified by this cautionary statement.

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**OBSIDIAN ENERGY LTD.** 

We are a Canadian-based corporation formed by amalgamation under the *Business Corporations Act* (Alberta), which we refer to as the "**ABCA**". We are engaged in the business of oil and natural gas exploration, development, acquisition and production in Canada. Our operations are currently focused in Western Canada.

Our common shares are listed on the Toronto Stock Exchange under the symbol "OBE" and on the NYSE American under the symbol "OBE".

As of September 30, 2025, there were 66,988,168 of our common shares issued and outstanding.

Our principal executive offices are located at Suite 200, 207 - 9th Avenue S.W., Calgary, Alberta, Canada T2P 1K3, Telephone Number: (403) 777-2500.

**USE OF PROCEEDS** 

We will not receive any of the proceeds from the sale of common shares if and when sold by the selling securityholder.

**MATERIAL CHANGES** 

Except as otherwise disclosed in this prospectus there have been no material changes to our operations that have occurred since December 31, 2024, and that have not been described in a report on Form 6-K furnished under the Exchange Act and incorporated by reference into this prospectus.

**CAPITALIZATION AND INDEBTEDNESS** 

The following table sets forth our consolidated capitalization and indebtedness as at June 30, 2025, the date of our most recently filed unaudited interim consolidated financial statements. This table should be read in conjunction with our unaudited interim consolidated financial statements and the related notes and management's discussion and analysis of financial condition and results of operations in respect of those statements that are incorporated by reference in this prospectus.

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| | |
|:---|:---|
| ***(CAD$ in millions)*** | **As of June 30, 2025** |
|  **Components of capital:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' capital | $2090.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, including current portion | $222.8 |
|  **Total Capitalization** | $2313.6 |

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**SELLING SECURITYHOLDER** 

This prospectus relates to the possible resale by the selling securityholder of up to 1,304,806 common shares.

The selling securityholder may offer and sell, from time to time, any or all of the common shares being offered for resale pursuant to this prospectus. In this prospectus, the term "**selling securityholder**" includes (i) the person identified in the table below (as such table may be amended from time to time by means of an amendment to the registration statement of which this prospectus forms a part or by a supplement to this prospectus) and (ii) any donees, pledgees, transferees or other successors-in-interest that acquire any of the securities covered by this prospectus after the date of this prospectus from the named selling securityholder as a gift, pledge, partnership distribution or other non-sale related transfer.

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The table below sets forth, as of the date of this prospectus, the name of the selling securityholder for which we are registering common shares for resale to the public, and the aggregate number of common shares that the selling securityholder may offer pursuant to this prospectus. In accordance with SEC rules, individuals and entities below are shown as having beneficial ownership over shares they own or have the right to acquire within 60 days, as well as shares for which they have the right to vote or dispose of such shares. Also, in accordance with SEC rules, for purposes of calculating percentages of beneficial ownership, shares which a person has the right to acquire within 60 days of September 30, 2025 are included both in that person's beneficial ownership as well as in the total number of shares issued and outstanding used to calculate that person's percentage ownership but not for purposes of calculating the percentage for other persons. In some cases, the same common shares are reflected more than once in the table below because more than one holder may be deemed the beneficial owner of the same common shares. We have based percentage ownership on 66,988,168 common shares outstanding as of the date of this prospectus.

Because the selling securityholder may dispose of all, none or some portion of their securities, no estimate can be given as to the number of securities that will be beneficially owned by the selling securityholder upon termination of this offering. For purposes of the table below, however, we have assumed that after termination of this offering none of the securities covered by this prospectus will be disposed of by the selling securityholder and further assumed that the selling securityholder will not acquire beneficial ownership of any additional securities during the offering. In addition, the selling securityholder may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time and from time to time, our securities in transactions exempt from the registration requirements of the Securities Act after the date on which the information in the table is presented. Please see the section titled "*Plan of Distribution*" for further information regarding the selling securityholder's method of distributing these securities.

Unless otherwise indicated, the business address of the beneficial owner listed in the table below is c/o Obsidian Energy Ltd. Suite 200, 207 - 9th Avenue S.W., Calgary, Alberta, Canada T2P 1K3.

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| | | | |
|:---|:---|:---|:---|
| **<u>Name of Selling</u>**<br> **<u>Securityholder</u>** | **<u>Number of Common Shares</u>**<br> **<u>Owned Prior to Offering</u>** | **<u>Number of Common Shares to</u>**<br> **<u>be Sold in Offering</u>** | **<u>Percentage of Common Shares</u>**<br> **<u>Held After Offering <sup>(1)</sup></u>** |
|  Stephen Loukas<sup>(2)</sup> | 1309623 | 1304806 | 1.92% |

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(1) Calculated based on rule 13d-3(d)(1) under the Exchange Act, using
66,988,168 common shares outstanding as of September 30, 2025.

(2) Stephen Loukas is our President and Chief Executive Officer and a member of our Board of Directors.

**PLAN OF DISTRIBUTION** 

The selling securityholder may, from time to time, in one or more transactions, sell any or all of their common shares on any stock exchange, market or trading facility on which our common shares are traded or in negotiated transactions. These sales may be at fixed prices or prices that may be changed or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices, including sales made directly on the Toronto Stock Exchange, NYSE American or other existing trading markets for our common shares. The prices at which the common shares may be offered may vary as between purchasers and during the period of distribution. The selling securityholder will act independently of our company in making decisions with respect to the timing, manner and size of each sale. The selling securityholder may sell the common shares to or through underwriters or dealers, and also may sell common shares to one or more other purchasers directly or through agents, including sales pursuant to ordinary brokerage transactions and transactions in which a broker-dealer solicits purchasers, or pursuant to delayed delivery contracts, by remarketing firms or by other means.

In effecting sales, brokers or dealers engaged by the selling securityholder may arrange for other brokers or dealers to participate. Broker-dealer transactions may include purchases of common shares by a broker-dealer as principal and resales of common shares by the broker-dealer for its account pursuant to an applicable prospectus supplement, ordinary brokerage transactions or transactions in which the broker-dealer solicits purchasers. Such broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling securityholder and/or the purchasers of the securities offered hereby for whom such broker-dealers may act as agents or to whom they sell as principal, or both (which compensation as to a particular broker-dealer might be in excess of customary commissions). Any broker-dealers participating in the distribution of the common shares covered by an applicable prospectus supplement may be deemed to be "underwriters" within the meaning of the Securities Act, and any commissions received by any of those broker-dealers may be deemed to be underwriting commissions under the Securities Act.

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The selling securityholder may sell common shares other than pursuant to this prospectus or an applicable prospectus supplement under available exemptions from the registration requirements of the Securities Act. The selling securityholder may sell none, some or all of the common shares. We cannot predict when or in what amounts the selling securityholder may sell any of its common shares.

If necessary, we will prepare a prospectus supplement in connection with the offer and sale of common shares by the selling securityholder.

The aggregate proceeds to the selling securityholder from the sale of the common shares offered by it will be the purchase price of the common shares less expenses and discounts or commissions, if any. The selling securityholder may reserve the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common shares to be made directly or through agents. We will not receive any proceeds from the sale of the common shares by the selling securityholder. We will bear all costs, expenses and fees in connection with the registration of the common shares to be sold by the selling securityholder, other than brokerage commissions and similar selling expenses, if any, attributable to the sale of securities offered under this prospectus, which will be borne by the selling securityholder.

Underwriters, dealers and agents who participate in the offer and sale of the common shares may be entitled, under agreements to be entered into with the selling securityholder, to indemnification by the selling securityholder against certain liabilities, including liabilities under the Securities Act and Canadian securities legislation, or to contribution with respect to payments which such underwriters, dealers or agents may be required to make in respect thereof. Such underwriters, dealers and agents may be customers of, engage in transactions with, or perform services for us in the ordinary course of business.

**DESCRIPTION OF SECURITIES TO BE REGISTERED** 

Our common shares are listed on the Toronto Stock Exchange under the symbol "OBE" and on the NYSE American under the symbol "OBE".

We are authorized to issue an unlimited number of common shares without nominal or par value and 90,000,000 preferred shares without nominal or par value.

A description of the common shares is set forth under the headings "Capitalization of Obsidian Energy" and "Dividends and Dividend Policy" in our Annual Information Form for the fiscal year ended December 31, 2024, filed as Exhibit 99.1 to our Annual Report on Form 40-F for the year ended December 31, 2024, all of which description is incorporated herein by reference as part of our Annual Report on Form 40-F for the year ended December 31, 2024. The foregoing description is only a summary of certain terms and conditions of the common shares and is qualified in its entirety by reference to our Articles of Amalgamation and By-Laws, each of which has been filed as an exhibit to the registration statement of which this prospectus forms a part.

**DESCRIPTION OF ARTICLES AND BY-LAWS** 

**Conflict of Interest** 

Our By-Laws provide that a director or officer of our company who is a party to a material contract or material transaction or proposed material contract or proposed material transaction with our company, or is a director or an officer or has a material interest in any person who is a party to a material contract or proposed material contract or material transaction or proposed material transaction with our company, must disclose the nature and extent of his or her interest at the time and in the manner provided in the ABCA. Except as provided in the ABCA, no such director may vote on any resolution to approve such contract or transaction. If a material contract or material transaction is made between us and one or more of our directors or officers, or between us and another person of which a director or officer of our company is a director or officer or in which he or she has a material interest: (i) the contract or transaction is neither void nor voidable by reason only of that relationship, or by reason only that a director with an interest in the contract or transaction is present at or is counted to determine the presence of a quorum at a meeting of directors or committee of directors that authorized the contract or transaction; and (ii) a director or officer or former director or officer of our company to whom a profit accrues as a result of the making of the contract is not liable to account to us for that profit by reason only of holding office as a director or officer, if the director or officer disclosed his or her interest in accordance with the provisions of the ABCA and the contract was approved by our directors or our shareholders and it was reasonable and fair to us at the time it was approved.

------

Even if the above conditions are not met, our By-Laws provide that a director or officer acting honestly and in good faith will not be accountable to us or to our shareholders for any profit realized from a material contract or material transaction for which disclosure is required by the ABCA, and any such contract or transaction will not be void or voidable by reason only of the director or officer's interest therein, provided that the material contract or material transaction was approved or confirmed by special resolution at a meeting of our shareholders, disclosure of the interest was made to our shareholders in a manner sufficient to indicate its nature before the contract or transaction was approved or confirmed, and the contract or transaction was reasonable and fair to us at the time it was approved or confirmed.

**Remuneration of Directors, Officers and Employees** 

Our By-Laws provide that subject to our Articles of Amalgamation, our directors may fix the remuneration of our directors, officers and employees. Any remuneration paid to a director of our company will be in addition to the salary paid to the director in his or her capacity as an officer or employee of our company. Our directors may also by resolution award special remuneration to any director in undertaking any special services on our behalf. Our directors, officers and employees are also entitled to be paid their traveling and other expenses properly incurred by them in connection with the affairs of our company.

Our By-Laws further provide that subject to our Articles of Amalgamation, a majority of the number of our directors constitutes a quorum at any meeting of directors and, notwithstanding any vacancy among the directors, and subject to the ABCA, a quorum of directors may exercise all the powers of the directors. None of our Articles of Amalgamation, By-Laws or the ABCA contain any explicit restrictions on our directors' ability to fix the remuneration of directors in the absence of an independent quorum of directors. However, our directors are subject to the conflict of interest rules described above under "Conflict of Interest", our directors fix the remuneration of directors in accordance with policies adopted by our directors from time to time, and our directors are subject to statutory and common law fiduciary duties at all times. Questions arising at any meeting of our directors are decided by a majority of votes. In the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

**Borrowing Powers of Directors** 

Our Articles of Amalgamation provide that our directors may, without authorization of our shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) borrow money on the credit of our company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue, reissue, sell or pledge debt obligations of our company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the ABCA, give a guarantee on behalf of our company to secure performance of an obligation of any
person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of our company,
owned or subsequently acquired, to secure any obligation of our company.

The ABCA provides that our directors will have these powers unless our Articles of Amalgamation or By-Laws provide otherwise. Any amendment to our Articles of Amalgamation or By-Laws would need to be approved by the holders of our common shares in accordance with the requirements of the ABCA. The ABCA also provides that unless our Articles of Amalgamation or By-Laws provide otherwise, our directors may, by resolution, delegate the powers referred to above to a director of our company, to a committee of our directors, or to an officer of our company.

**Voting Rights** 

Our Articles of Amalgamation provide that the holders of our common shares are entitled to notice of, to attend and to one vote per share held at any meeting of our shareholders (other than meetings of a class or series of shares other than the common shares as such). Our directors do not stand for re-election at staggered intervals.

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The holders of our common shares are entitled to receive dividends as and when declared by our Board of Directors on the common shares as a class, subject to prior satisfaction of all preferential rights to dividends attached to shares of other classes of our shares ranking in priority to the common shares in respect of dividends. Pursuant to our By-Laws, any dividend unclaimed after a period ending on the last business day prior to the third anniversary of the date on which the dividend has been declared to be payable will be forfeited and will revert to us and will be deemed to have been transferred to us on that date.

Our Articles of Amalgamation further provide that the holders of our common shares are entitled in the event of any liquidation, dissolution or winding-up of our company, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding-up our affairs, and subject to prior satisfaction of all preferential rights to return of capital on dissolution attached to all shares of other classes of our shares ranking in priority to the common shares in respect of return of capital on dissolution, to share rateably, together with the holders of shares of any other class of our shares ranking equally with our common shares in respect of return of capital on dissolution, in such of our assets as are available for distribution.

**Changes to Shareholder Rights** 

In accordance with the ABCA, the rights of holders of our common shares may be changed by amending our Articles of Amalgamation or, to the extent applicable, our By-Laws. An amendment to our Articles of Amalgamation or By-Laws, as applicable, would require the approval of the holders of our common shares in accordance with the requirements of the ABCA.

**Shareholder Meetings** 

Our By-Laws provide that, subject to sections 131 and 132 of the ABCA, our annual meeting of shareholders must be held at our registered office or at a place elsewhere within Alberta (or outside Alberta if permitted by our Articles) determined by our directors on such day in each year and at such time that our directors may determine. Our Articles of Amalgamation provide that our annual meeting of shareholders may be held at any place within Alberta or at any of the following cities: Vancouver, British Columbia; Victoria, British Columbia; Winnipeg, Manitoba; Toronto, Ontario; Ottawa, Ontario; Montreal, Quebec; or Halifax, Nova Scotia. The ABCA requires that we hold an annual meeting of our shareholders each year, no later than 15 months after the date of our prior annual shareholders meeting.

In addition, our directors may at any time call a special meeting of shareholders to be held on the day and at the time and, subject to section 131 of the ABCA, at the place within Alberta that our directors may determine (or, if our Articles of Amalgamation so provide, outside Alberta).

Under the ABCA, where a company is a reporting issuer, notice of a meeting of shareholders is required to be provided at least 21 days, but no more than 50 days, prior to the date on which the meeting is to be held.

The ABCA permits a record date to be fixed for determining shareholders entitled to receive notice of or to vote at a meeting of shareholders. If a record date is fixed, it must be a date that is at least 21 days, but no more than 50 days, prior to the date on which the meeting is to be held. If a record date is not fixed, the record date will be determined in accordance with the provisions of the ABCA.

Our By-Laws state that the only persons entitled to be present at a meeting of shareholders are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) those entitled to vote at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) our directors, officers and auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) others who, although not entitled to vote, are entitled or required under any provision of the ABCA, our
Articles of Amalgamation or our By-Laws to be present at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) our legal counsel when invited by us to attend the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any other person on the invitation of the chair of the meeting or with the consent of the meeting.

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Pursuant to our By-Laws, votes at meetings of our shareholders may be given either personally or by proxy. Every question submitted to any meeting of our shareholders will be decided on a show of hands except when a ballot is required by the chair of the meeting or is demanded by a shareholder or proxyholder entitled to vote at the meeting. A shareholder or proxyholder may demand a ballot either before or on the declaration of the result of any vote by show of hands. At every meeting at which he or she is entitled to vote, every shareholder present in person and every proxyholder has one vote on a show of hands. Upon a ballot at which he or she is entitled to vote, every shareholder present in person or by proxy will (subject to the provisions, if any, of our Articles of Amalgamation) have one vote for every share for which he or she is entitled to vote. In the case of an equality of votes the chair of the meeting shall not, either on a show of hands or on a ballot, have a second or casting vote in addition to the vote or votes to which he or she may be entitled as a shareholder or proxyholder.

At any meeting, unless a ballot is demanded by a shareholder or proxyholder entitled to vote at the meeting, a declaration by the chair of the meeting that a resolution has been carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact without proof of the number or proportion of votes recorded in favor of or against the resolution.

If at any meeting a ballot is demanded on the election of a chair or on the question of adjournment or termination, the ballot must be taken promptly without adjournment. If a ballot is demanded on any other question or as to the election of directors, the ballot must be taken in the manner and either at once or later at the meeting or after adjournment as the chair of the meeting directs. The result of a ballot will be deemed to be the resolution of the meeting at which the ballot was demanded. A demand for a ballot may be withdrawn.

With the consent of the chair of the meeting, a shareholder or any other person entitled to attend a meeting of shareholders may participate in the meeting by electronic means, telephone or other communication facilities that permit all persons participating in the meeting to hear or otherwise communicate with each other and a person participating in such a meeting by those means is deemed for the purposes of the ABCA and our By-Laws to be present at the meeting.

If our directors or shareholders call a meeting of shareholders, the directors or the shareholders, as the case may be, may (with the consent of the chair of the meeting) determine that the meeting will be held, in accordance with the regulation to the ABCA, if any, entirely by electronic means, telephone or other communication facility that permits all participants to communicate adequately with each other during the meeting.

The chair of the meeting may with the consent of the meeting adjourn any meeting of shareholders from time to time to a fixed time and place and if the meeting is adjourned by one or more adjournments for an aggregate of less than 30 days it is not necessary to give notice of the adjourned meeting other than by announcement at the time of an adjournment.

Any adjourned meeting shall be duly constituted if held in accordance with the terms of the adjournment and a quorum is present at the adjourned meeting. The persons who formed a quorum at the original meeting are not required to form the quorum at the adjourned meeting. Any business may be brought before or dealt with at the adjourned meeting that might have been brought before or dealt with at the original meeting in accordance with the notice calling the same.

Two persons present and holding or representing by proxy one-quarter of the shares entitled to vote at a meeting of shareholders constitutes a quorum. If a quorum is present at the opening of a meeting of shareholders, the shareholders present may proceed with the business of the meeting, notwithstanding that a quorum is not present throughout the meeting. Notwithstanding the foregoing, if we have only one shareholder, or one shareholder holding a majority of the shares entitled to vote at the meeting, that shareholder present in person or by proxy constitutes a meeting and a quorum for the meeting.

A resolution in writing signed by all the shareholders entitled to vote on that resolution is as valid as if it had been passed at a meeting of the shareholders. A resolution in writing dealing with all matters required by the ABCA or our By-Laws to be dealt with at a meeting of shareholders, and signed by all the shareholders entitled to vote at that meeting, satisfies all the requirements of the ABCA and our By-Laws relating to meetings of shareholders.

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**Qualification of Directors** 

In accordance with the ABCA, a person must be at least 18 years of age in order to serve as a director of our company.

Our Director and Executive Share Ownership Policy provides that: (a) each non-management member of our Board of Directors, other than the Chair, is required to meet and maintain ownership of a minimum value of our common shares representing at least three times the non-management director's total annual retainer within five years from the date they join our Board of Directors; and (b) the Chair of the Board of Directors is required to meet and maintain ownership of a minimum value of our common shares representing at least three times the Chair's total annual retainer within five years from the date of appointment as Chair. The number of common shares deemed to be held by an individual is calculated in accordance with the Policy.

**Nomination of Directors** 

Our By-Laws set forth procedures that must be followed by any shareholder who intends to nominate any person for election as a director, other than pursuant to a proposal made in accordance with the ABCA, or a requisition of a shareholder meeting made pursuant to the ABCA. Our By-Laws stipulate a deadline by which shareholders must notify us of their intention to nominate directors and also sets out the information that shareholders must provide regarding each director nominee and the nominating shareholder in order for the requirements of the By-Laws to be met. These requirements are intended to provide all shareholders, including those voting by proxy, with the opportunity to evaluate the nominees and vote in an informed and timely manner regarding said nominees. These procedures also ensure orderly and efficient shareholder meetings by providing a structured and transparent framework for nominating directors. No person nominated by a shareholder will be eligible for election as a director unless nominated in accordance with the provisions of the By-Laws.

**EXPENSES** 

The expenses in connection with the offer and sale of the common shares being offered are as follows:

---

| | |
|:---|:---|
|  Securities and Exchange Commission Registration Fee | $2274.81 |
|  Legal Fees and Expenses | $30,000\* |
|  Auditor Fees | $14,500\* |
|  Miscellaneous | $5,000\* |
|  Total | $51774.81 \* |

---

\*Estimated

**INDEMNIFICATION** 

Our By-Laws provide that no director or officer of our company will be liable to us for the acts, receipts, neglects or defaults of any other director or officer or employee or for joining in any receipt or act for conformity or for any loss, damage or expense happening to us through the insufficiency or deficiency of title to any property acquired by us or for or on behalf of our company or for the insufficiency or deficiency of any security in or upon which any of the monies of or belonging to us shall be placed out or invested or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or corporation including any person, firm or corporation with whom or which any monies, securities or effects shall be lodged or deposited or for any loss, conversion, misapplication or misappropriation of or any damage resulting from any dealings with any monies, securities or other assets belonging to us or for any other loss, damage or misfortune whatever which may happen in the execution of the duties of his or her respective office of trust or in relation thereto, unless the same shall happen by or through his or her failure to exercise the powers and to discharge the duties of his or her office honestly, in good faith with a view to our best interests, and in connection therewith to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, provided that nothing herein contained shall relieve a director or officer from the duty to act in accordance with the ABCA or relieve him or her from liability for a breach of that duty under the ABCA.

------

Our By-Laws require that we indemnify our directors and officers, our former directors and officers and any person who acts or acted at our request as a director or officer of a body corporate of which we are or were a shareholder or creditor, and his or her heirs and legal representatives, against all costs, charges and expenses, to the maximum extent permitted under the ABCA. We have entered into indemnification agreements with our officers and directors that indemnify those persons to the maximum amount permitted by applicable law. Pursuant to these agreements, we have agreed to provide an advance of defence costs prior to final disposition of a proceeding, subject to an obligation to repay in certain circumstances.

As permitted by the ABCA, our By-Laws also state that we may purchase and maintain insurance for the benefit of any person referred to in the above paragraph against any liability incurred by him or her:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in his or her capacity as a director or officer of our company, except where the liability relates to his or
her failure to act honestly and in good faith with a view to our best interests; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in his or her capacity as a director or officer of another body corporate where he or she acts or acted in that
capacity at our request, except where the liability relates to his or her failure to act honestly and in good faith with a view to the best interests of the body corporate.

We have purchased insurance against potential claims against our directors and officers and against loss for which we may be required or permitted by law to indemnify those directors and officers.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the applicable provisions of the ABCA and our By-Laws, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**LEGAL MATTERS** 

The validity of the common shares being offered by this prospectus will be passed upon for us by Burnet, Duckworth & Palmer LLP, Calgary, Alberta. Dorsey & Whitney LLP, Vancouver, British Columbia and Seattle, Washington, has advised us with respect to certain U.S. legal matters.

**EXPERTS** 

The consolidated financial statements as of and for the years ended December 31, 2024 and 2023, and management's assessment of the effectiveness of internal control over financial reporting as of December 31, 2024 have been incorporated by reference herein and in the registration statement in reliance upon the reports of KPMG LLP, independent registered public accounting firm, incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing.

Certain information relating to our reserves incorporated by reference into this prospectus has been calculated by us and evaluated, as at December 31, 2024, by GLJ Ltd., an independent petroleum engineering consultant retained by us, and has been so included in reliance on the evaluation of GLJ Ltd., given upon the authority of said firm as an expert in reserve engineering.

------

![LOGO](g948515g1003074040904.jpg)

**OBSIDIAN ENERGY LTD.** 

**Up to 1,304,806 common shares** 

**Offered by the Selling Securityholder** 

**PROSPECTUS** 

**October 7, 2025** 

------

**PART II** 

**INFORMATION REQUIRED IN THE REGISTRATION STATEMENT** 

**Item 3. Incorporation of Documents by Reference.** 

The following documents filed by the Registrant with the Securities Exchange Commission ("**SEC**") are incorporated by reference into this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Our Annual Report on Form 40-F for the fiscal year ended [December 31, 2024](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/1334388/000095017025026337/obe-20241231.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Our Current Reports on Form 6-K, furnished on [January 14, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025005134/january_14_2025_press_re.htm) , [February 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025012999/february_4_2025_press_re.htm) , [February 20, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025023834/february_19_2025_press_r.htm) , [February 21, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025024663/material_contracts.htm) , [February 25, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025026343/2024_ye_filing_press_rel.htm) , [February 25, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025026791/feb_25_2025_pr_-_ye_fili.htm) , [February 26, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025027418/feb_26_2025_pr_-_note_re.htm) , [February 27, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025028597/feb_27_2025_pr_-_ncib.htm) , [February 28, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025029652/feb_27_2025_pr_-_pembina.htm) , [March 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025031857/march_4_material_contrac.htm) , [March 14, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025039183/mar_14_pr_-_fcf_offer.htm) , [April 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025051402/2025_management_info_cir.htm) , [April 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025051472/april_7_2025_pembina_clo.htm) , [April 30, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025061246/q1_2025_results_and_agsm.htm) , [May 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025065268/q1_2025_obe_6k_filing.htm) , [May 8, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025066608/agm_voting_results.htm) , [May 23, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025076891/may_23_2025_-_arca.htm) , [June 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025081479/operations_update_releas.htm) , [July 10, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025094947/h2_2025_guidance_release.htm) , [July 16, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025096137/non-binding_offer_releas.htm) , [July 30, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025100005/q2_2025_obe_6k_filing.htm) , [July 31, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025100678/obe_notes_repurchase_lau.htm) , [August 4, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025101752/ipo_share_repurchase.htm) , [August 7, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025105230/ipo_share_closing.htm) , [August 12, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025107446/material_change_report.htm) , [August 15, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000003/fcf_offer_closing.htm) , [August 18, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000005/notes_repurchase_-_aug_l.htm) , [September 2, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000133438825000008/notes_closing_sep_2.htm) and [September 8, 2025](http://www.sec.gov/Archives/edgar/data/1334388/000095017025113414/h2_capital_program_updat.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Our registration statement on Form 8-A relating to our common shares,
filed on [January 21, 2022](http://www.sec.gov/Archives/edgar/data/1334388/000119312522014790/d300684d8a12b.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All other reports and documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Exchange Act on or after the date of this Registration Statement and prior to the filing of a post-effective amendment to this Registration Statement which indicates that all securities offered have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part of this Registration Statement from the date of the filing of such reports and documents. We may also incorporate by reference future reports
on Form 6-K that we furnish subsequent to the date of this prospectus by stating in those Form 6-K's that they are being incorporated by reference into this
prospectus. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein
or in any subsequently filed document that also is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Registration Statement.

**Item 4. Description of Securities.** 

The description of our common shares included under the headings "*Capitalization of Obsidian Energy – Share Capital*", "*Capitalization of Obsidian Energy – Share Capital – Common Shares*" and "*Dividends and Dividend Policy*", in our Annual Information Form for the fiscal year ended December 31, 2024, attached as Exhibit 99.1 to our Annual Report on Form 40-F for the fiscal year ended December 31, 2024, which was filed on February 25, 2025, is incorporated herein by reference

**Item 5. Interests of Named Experts and Counsel.** 

Not applicable.

**Item 6. Indemnification of Directors and Officers.** 

Section 124 of the *Business Corporations Act* (Alberta) provides as follows:

124(1) Except in respect of an action by or on behalf of the corporation or body corporate to procure a judgment in its favour, a corporation may indemnify a director or officer of the corporation, a former director or officer of the corporation or a person who acts or acted at the corporation's request as a director or officer of a body corporate of which the corporation is or was a shareholder or creditor, and the director's or officer's heirs and legal representatives, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the director or officer in respect of any civil, criminal, administrative, investigative or other action or proceeding in which the director or officer is involved by reason of being or having been a director or officer of that corporation or body corporate, if

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the director or officer acted honestly and in good faith with a view to the best interests of the corporation,
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the
director or officer had reasonable grounds for believing that the director's or officer's conduct was lawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A corporation may with the approval of the Court indemnify a person referred to in subsection (1) in respect of an action by or on behalf of the corporation or body corporate to procure a judgment in its favour, to which the person is made a party by reason of being or having been a director or an officer of the corporation or body corporate, against all costs, charges and expenses reasonably incurred by the person in connection with the action if the person fulfils the conditions set out in subsection (1)(a) and (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding anything in this section, a person referred to in subsection (1) is entitled to indemnity from the corporation in respect of all costs, charges and expenses reasonably incurred by the person in connection with the defence of any civil, criminal, administrative, investigative or other action or proceeding in which the person is involved by reason of being or having been a director or officer of the corporation or body corporate, if the person seeking indemnity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was not judged by a court or competent authority to have committed any fault or omitted to do anything that the
person ought to have done, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fulfils the conditions set out in subsection (1)(a) and (b).

(3.1) A corporation may advance funds to a person in order to defray the costs, charges and expenses of a proceeding referred to in subsection (1) or (2), but if the person does not meet the conditions of subsection (3) the person shall repay the funds advanced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A corporation may purchase and maintain insurance for the benefit of any person referred to in subsection (1) against any liability incurred by the person

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the person's capacity as a director or officer of the corporation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the person's capacity as a director or officer of another body corporate if the person acts or acted
in that capacity at the corporation's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A corporation or a person referred to in subsection (1) may apply to the Court for an order approving an indemnity under this section and the Court may so order and make any further order it thinks fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) On an application under subsection (5), the Court may order notice to be given to any interested person and that person is entitled to appear and be heard in person or by counsel.

Sections 15, 16 and 17 of our By-Law No.1, contain the following provisions with respect to the protection and indemnification of our directors and officers:

**For the Protection of Directors and Officers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. No director or officer of the Corporation shall be liable to the Corporation for the acts, receipts, neglects or defaults of any other director or officer or employee or for joining in any receipt or act for conformity or for any loss, damage or expense happening to the Corporation through the insufficiency or deficiency of title to any property acquired by the Corporation or for or on behalf of the Corporation or for the insufficiency or deficiency of any security in or upon which any of the monies of or belonging to the Corporation shall be placed out or invested or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person, firm or corporation including any person, firm or corporation with whom or which any monies, securities or effects shall be lodged or deposited or for any loss, conversion, misapplication or misappropriation of or any damage resulting from any dealings with any monies, securities or other assets belonging to the Corporation or for any other loss, damage or misfortune whatever which may happen in the execution of the duties of his or her respective office of trust or in relation thereto, unless the same shall happen by or through his or her failure to exercise the powers and to discharge the duties of his or her office honestly, in good faith with a view to the best interests of the Corporation, and in connection therewith to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, provided that nothing herein contained shall relieve a director or officer from the duty to act in accordance with the Act or relieve him or her from liability for a breach of that duty under the Act.

------

**Indemnities to Directors and Others** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The Corporation shall indemnify a director or officer of the Corporation, a former director or officer of the Corporation or a person who acts or acted at the Corporation's request as a director or officer of a body corporate of which the Corporation is or was a shareholder or creditor, and his or her heirs and legal representatives, against all costs, charges and expenses, to the maximum extent permitted under the Act and may enter into indemnification agreements with each such persons from time to time. Nothing herein contained shall limit the right of any person entitled to indemnity to claim indemnity apart from the provisions of this paragraph 16.

**Insurance** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Corporation may purchase and maintain insurance for the benefit of any person referred to in paragraph 16 against any liability incurred by him or her:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in his or her capacity as a director or officer of the Corporation, except where the liability relates to his
or her failure to act honestly and in good faith with a view to the best interests of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in his or her capacity as a director or officer of another body corporate where he or she acts or acted in that
capacity at the Corporation's request, except where the liability relates to his or her failure to act honestly and in good faith with a view to the best interests of the body corporate.

The Corporation has purchased insurance against potential claims against the directors or officers of the Corporation and against loss for which the Corporation may be required or permitted by law to indemnify such directors and officers.

The Corporation has entered into indemnification agreements with its officers and directors that indemnify such persons to the maximum amount permitted by applicable law. Pursuant to these agreements, the Corporation has agreed to provide an advance of defence costs prior to final disposition of a proceeding, subject to an obligation to repay in certain circumstances.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Corporation pursuant to the applicable provisions of the *Business Corporations Act (Alberta)* and our By-Laws, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable.

**Item 7. Exemption from Registration Claimed.** 

The common shares being reoffered and resold pursuant to the Reoffer Prospectus were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act promulgated thereunder, as transactions by an issuer not involving a public offering and pursuant to a written compensatory benefit plan.

------

**Item 8. Exhibits.** 

---

| | |
|:---|:---|
| **Exhibits<br>Number** | **Document Description** |
| 3.1 | [Certificate and Articles of Amalgamation of Obsidian Energy Ltd., dated January 1, 2023](d948515dex31.htm) |
| 3.2 | By-Law No. 1 ([incorporated by reference to Exhibit 3.2 to our Registration Statement on Form F-4, filed on September 21, 2020](http://www.sec.gov/Archives/edgar/data/1334388/000119312520249753/d78310dex32.htm)) |
| 3.3 | By-Law No. 2 ([incorporated by reference to Exhibit 3.3 to our Registration Statement on Form F-4, filed on September 21, 2020](http://www.sec.gov/Archives/edgar/data/1334388/000119312520249753/d78310dex33.htm)) |
| 4.1 | [Obsidian Energy Ltd. Stock Option Plan, amended and restated as of July 30, 2020](d948515dex41.htm) |
| 4.2 | [Obsidian Energy Ltd. Restricted and Performance Share Unit Plan, amended and restated as of July 30, 2020](d948515dex42.htm) |
| 4.3 | [Employee Retirement / Savings Plan – Equity and Cash Component, effective October 31, 2018](d948515dex43.htm) |
| 5.1 | [Opinion of Burnet, Duckworth & Palmer LLP](d948515dex51.htm) |
| 23.1 | [Consent of KPMG LLP](d948515dex231.htm) |
| 23.2 | [Consent of GLJ Ltd.](d948515dex232.htm) |
| 23.3 | [Consent of Burnet, Duckworth & Palmer LLP (contained in Exhibit 5.1)](d948515dex51.htm) |
| 24.1 | [Powers of Attorney (included on the signature pages to this Registration Statement)](d948515ds8.htm#sig) |
| 107 | [Filing Fee Table](d948515dexfilingfees.htm) |

---

\* Filed herewith.

**Item 9. Undertakings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this
Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement
(or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in the
volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not previously disclosed in the
Registration Statement or any material change to such information in the Registration Statement;

Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) above do not apply if the information required to be included in a post-effective amendment by such paragraphs is contained in reports filed with or furnished to the SEC by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the
Securities Act, each filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered hereby, the Registrant will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such
issue.

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Calgary, Province of Alberta, Canada on October 7, 2025.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY LTD.** | **OBSIDIAN ENERGY LTD.** |
| By: | */s/ Stephen E. Loukas* |
|  | Name: Stephen E. Loukas<br> Title: President and Chief Executive Officer |

---

------

**POWERS OF ATTORNEY** 

Each person whose signature appears below constitutes and appoints Stephen E. Loukas and Peter D. Scott, and each of them, any of whom may act without the joinder of the other, his true and lawful attorneys-in-fact and agent, acting together, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this registration statement, including, without limitation, post-effective amendments to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to said attorneys-in-fact and agents, each acting alone, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, each acting alone, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on October 7, 2025.

---

| | |
|:---|:---|
| Signature | Title |
|  */s/ Stephen E. Loukas*<br> Stephen E. Loukas | President, Chief Executive Officer and Director<br> (Principal Executive Officer) |
|  */s/ Peter D. Scott*<br> Peter D. Scott | Senior Vice President and Chief Financial Officer<br> (Principal Accounting and Financial Officer) |
|  */s/ Gordon M. Ritchie* <br> Gordon M. Ritchie | Chair of the Board and Director |
|  */s/ Shani Bosman*<br> Shani Bosman | Director |
|  */s/ John Brydson*<br> John Brydson | Director |
|  */s/ Raymond D. Crossley*<br> Raymond D. Crossley | Director |
|  */s/ Michael J. Faust*<br> Michael J. Faust | Director |
|  */s/ Edward (Ed) H. Kernaghan*<br> Edward (Ed) H. Kernaghan | Director |

---

------

**AUTHORIZED REPRESENTATIVE** 

Pursuant to the requirements of Section 6(a) of the Securities Act of 1933, the undersigned has signed this registration statement, solely in the capacity of the duly authorized representative of Obsidian Energy Ltd. in the United States, on October 7, 2025.

---

| | |
|:---|:---|
| **PUGLISI & ASSOCIATES** | **PUGLISI & ASSOCIATES** |
| By: | */s/ Donald J. Puglisi* |
|  | Name: Donald J. Puglisi |
|  | Title: Managing Director |

---

## Exhibit 3.1

**Exhibit 3.1** 

**CORPORATE ACCESS NUMBER: 2024808459**![LOGO](g948515dsp1aa.jpg)

**BUSINESS CORPORATIONS ACT** 

**CERTIFICATE** 

**OF** 

**AMALGAMATION** 

**OBSIDIAN ENERGY LTD.** 

IS THE RESULT OF AN AMALGAMATION FILED ON 2023/01/01.

![LOGO](g948515g0802001457260.jpg)

------

**Amalgamate Alberta Corporation - Registration Statement** 

**Alberta Registration Date: 2023/01/01** 

**Corporate Access Number: 2024808459** 

**Business Number:** 

---

| | |
|:---|:---|
| **Service Request Number:** | 38858021 |
| **Alberta Corporation Type:** | Named Alberta Corporation |
| **Legal Entity Name:** | OBSIDIAN ENERGY LTD. |
| **Business Number:**<br> **French Equivalent Name:**<br> **Nuans Number:**<br> **Nuans Date:**<br> **French Nuans Number:**<br> **French Nuans Date:**<br> **REGISTERED ADDRESS**<br> **Street:** | 200, 207 - 9TH AVENUE SW |
| **Legal Description:**<br> **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2P1K3 |
| **RECORDS ADDRESS**<br> **Street:** | 200, 207 - 9TH AVENUE SW |
| **Legal Description:**<br> **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2P1K3 |
| **ADDRESS FOR SERVICE BY MAIL**<br> **Post Office Box:**<br> **City:**<br> **Province:**<br> **Postal Code:**<br> **Email Address:** | MARK.HAWKINS@OBSIDIANENERGY.COM |
| **Share Structure:** | SEE ANNEX A ATTACHED HERETO |
| **Share Transfers Restrictions:** |  |
| **Number of Directors:**<br> **Min Number Of Directors:** | 3 |
| **Max Number Of Directors:** | 12 |
| **Business Restricted To:** |  |
| **Business Restricted From:** |  |
| **Other Provisions:** | SEE ANNEX B ATTACHED HERETO |

---

------

**Professional Endorsement Provided:** 

**Future Dating Required:** 

---

| | |
|:---|:---|
| **Registration Date:** | 2023/01/01 |

---

**Agent for Service** 

---

| | |
|:---|:---|
| **Agent for Service Type:** | Primary |
|  **Last Name:** | HAWKINS |
|  **First Name:**<br> **Middle Name:** | MARK |
|  **Firm Name:** | OBSIDIAN ENERGY LTD. |
|  **Street:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:** | T2P1K3 |
|  **Email Address:** | MARK.HAWKINS@OBSIDIANENERGY.COM |
| **Director** |  |
|  **Last Name:** | LOUKAS |
|  **First Name:**<br> **Middle Name:** | STEPHEN |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:** | T2P1K3 |
|  **Named On Stat Dec:** | Y |
|  **Last Name:** | RITCHIE |
|  **First Name:**<br> **Middle Name:** | GORDON |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |
|  **Last Name:** | BRYDSON |
|  **First Name:**<br> **Middle Name:** | JOHN |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |

---

------

---

| | |
|:---|:---|
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |
|  **Last Name:** | BOSMAN |
|  **First Name:**<br> **Middle Name:** | SHANI |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |
|  **Last Name:** | CROSSLEY |
|  **First Name:**<br> **Middle Name:** | RAYMOND |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |
|  **Last Name:** | FAUST |
|  **First Name:**<br> **Middle Name:** | MICHAEL |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |
|  **Last Name:** | KERNAGHAN |
|  **First Name:**<br> **Middle Name:** | EDWARD |
|  **Street/Box Number:** | 200, 207 9TH AVENUE SW |
|  **City:**<br> **Province:** | CALGARY<br> ALBERTA |
|  **Postal Code:**<br> **Country:**<br> **Named On Stat Dec:** | T2P1K3 |

---

------

**Amalgamating Corporation** 

---

| | | |
|:---|:---|:---|
| **Corporate Access Number** | **Business Number** | **Legal Entity Name** |
| 2015376763 | 809991250 | PENN WEST PROP HOLDCO LTD. |
| 2015376946 | 809852262 | PENN WEST SANDHILL CRANE LTD. |
| 2015535020 | 851001008 | CORDOVA GAS RESOURCES LTD. |
| 2020125932 | 898888284 | OBSIDIAN ENERGY LTD. |
| 2023850882 | 768849507 | PROP ENERGY 45 GP LTD. |
| 2024766251 | 717488894 | 2476625 ALBERTA LTD. |

---

**Attachment** 

---

| | | |
|:---|:---|:---|
| **Attachment Type** | **Microfilm Bar Code** | **Date Recorded** |
| Share Structure | ELECTRONIC | 2023/01/01 |
| Statutory Declaration | 10000407135643644 | 2023/01/01 |
| Other Rules or Provisions | ELECTRONIC | 2023/01/01 |

---

**Registration Authorized By:** ERIN MOCH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SOLICITOR

The Registrar of Corporations certifies that the information contained in this statement is an accurate reproduction of the data contained in the specified service request in the official public records of Corporate Registry.

------

**Articles of Amalgamation** 

**For** 

**OBSIDIAN ENERGY LTD.** 

---

| | |
|:---|:---|
|  **Share Structure:** | SEE ANNEX A ATTACHED HERETO |
|  **Share Transfers Restrictions:** | NONE |
|  **Number of Directors:** |  |
|  **Min Number of Directors:** | 3 |
|  **Max Number of Directors:** | 12 |
|  **Business Restricted To:** | NONE |
|  **Business Restricted From:** | NONE |
|  **Other Provisions:** | SEE ANNEX B ATTACHED HERETO |

---

**Registration Authorized By:** ERIN MOCH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SOLICITOR

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ANNEX A

The Corporation is authorized to issue an unlimited number of Common Shares without nominal or par value and 90,000,000 Preferred Shares without nominal or par value. The rights, privileges, restrictions and conditions attached to each class of shares are set forth below.

COMMON SHARES

The unlimited number of Common Shares shall have attached thereto the following rights, privileges, restrictions and conditions:

a. The holders of Common Shares shall be entitled to notice of to attend and to one vote per share held at any meeting of the shareholders of the Corporation (other than meetings of a class or series of shares of the Corporation other than the Common Shares as such);

b. The holders of Common Shares shall be entitled to receive dividends as and when declared by the Board of Directors of the Corporation on the Common Shares as a class, subject to prior satisfaction of all preferential rights to dividends attached to shares of other classes of shares of the Corporation ranking in priority to the Common Shares in respect of dividends; and

c. The holders of Common Shares shall be entitled in the event of any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of the assets of the Corporation among its shareholders for the purpose of winding-up its affairs, and subject to prior satisfaction of all preferential rights to return of capital on dissolution attached to all shares of other classes of shares of the Corporation ranking in priority to the Common Shares in respect of return of capital on dissolution, to share rateably, together with the holders of shares of any other class of shares of the Corporation ranking equally with the Common Shares in respect of return of capital on dissolution, in such assets of the Corporation as are available for distribution.

PREFERRED SHARES

The 90,000,000 Preferred Shares shall have attached thereto the following rights, privileges, restrictions and conditions:

a. The Preferred Shares may at any time or from time to time be issued in one or more series. Before any shares of a particular series are issued, the Directors of the Corporation shall, by resolution, fix the number of shares that will form such series and shall, subject to the limitations set out herein, by resolution fix the designation, rights, privileges, restrictions and conditions to be attached to the Preferred Shares of such series, including, but without in any way limiting or restricting the generality of the foregoing, the rate, amount or method of calculation of dividends thereon, the time and place of payment of dividends, the consideration for and the terms and conditions of any purchase for cancellation, retraction or redemption thereof, conversion or exchange rights (if any), and whether into or for securities of the Corporation or otherwise, voting rights attached thereto (if any), the terms and conditions of any share purchase or retirement plan or sinking fund, and restrictions on the payment of dividends on

------

any shares other than Preferred Shares or payment in respect of capital on any shares in the capital of the Corporation or creation or issue of debt or equity securities; the whole subject to filing with the Registrar (as defined in the Business Corporations Act (Alberta) or successor legislation thereto) of Articles of Amendment setting forth a description of such series including the designation, rights, privileges, restrictions and conditions attached to the shares of such series;

b. Notwithstanding paragraph (a), the Directors of the Corporation may at any time or from time to time change the rights, privileges, restrictions and conditions attached to unissued shares of any series of Preferred Shares;

c. Notwithstanding paragraph (a), other than in the case of a failure to declare or pay dividends specified in any series of the Preferred Shares, the voting rights attached to the Preferred Shares shall be limited to one vote per Preferred Share at any meeting where the Preferred Shares and Common Shares vote together as a single class;

d. The Preferred Shares of each series shall rank on a parity with the Preferred Shares of every other series with respect to accumulated dividends and return of capital. The Preferred Shares shall be entitled to a preference over the Common Shares and over any other shares of the Corporation ranking junior to the Preferred Shares with respect to priority in the payment of dividends and in the distribution of assets in the event of the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of the assets of the Corporation among its shareholders for the purpose of winding-up its affairs. If any cumulative dividends or amounts payable on a return of capital are not paid in full, the Preferred Shares of all series shall participate rateably in respect of such dividends, including accumulations, if any, in accordance with the sums that would be payable on such shares if all such dividends were declared and paid in full, and in respect of any repayment of capital in accordance with the sums that would be payable on such repayment of capital if all sums so payable were paid in full; provided, however, that in the event of there being insufficient assets to satisfy in full all such claims as aforesaid, the claims of the holders of the Preferred Shares with respect to repayment of capital shall first be paid and satisfied and any assets remaining thereafter shall be applied towards the payment in satisfaction of claims in respect of dividends. The Preferred Shares of any series may also be given such other preferences not inconsistent with paragraphs (a) through (e) hereof over the Common Shares and any other shares ranking junior to the Preferred Shares as may be determined in the case of each such series of Preferred Shares; and

e. The rights, privileges, restrictions and conditions attaching to the Preferred Shares as a class as provided herein and as may be provided from time to time may be repealed, altered, modified, amended or amplified or otherwise varied only with the sanction of the holders of the Preferred Shares given in such manner as may then be required by law, subject to a minimum requirement that such approval be given by resolution passed by the affirmative vote of a least two-thirds of the votes cast at a meeting of holders of Preferred Shares duly called for such purpose and held upon at least 21 days' notice at which a quorum is present comprising at least two persons present, holding or representing by proxy at least 10 percent of the outstanding Preferred Shares or by a resolution in writing

------

of all holders of the outstanding Preferred Shares. If any such quorum is not present within half an hour after the time appointed for the meeting, then the meeting shall be adjourned to a date being not less than 7 days later and at such time and place as may be appointed by the chairman and at such meeting a quorum will consist of that number of shareholders present in person or represented by proxy. The formalities to be observed with respect to the giving of notice of any such meeting or adjourned meeting and the conduct thereof shall be those which may from time to time be prescribed in the by-laws of the Corporation with respect to meetings of shareholders. On every vote taken at every such meeting or adjourned meeting each holder of a Preferred Share shall be entitled to one vote in respect of each one dollar of stated value of Preferred Shares held.

------

ANNEX B

a. The directors of the corporation may, without authorization of the shareholders:

(i) borrow money on the credit of the Corporation;

(ii) issue, reissue, sell or pledge debt obligations of the Corporation;

(iii) subject to the Business Corporations Act (Alberta), give a guarantee on behalf of the Corporation to secure performance of an obligation of any person; and

(iv) mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the Corporation, owned or subsequently acquired, to secure any obligation of the Corporation.

b. The directors may, between annual general meetings, appoint one or more additional directors of the Corporation to serve until the next annual general meeting, but the number of additional directors shall not at any time exceed one-third of the number of directors who held office at the expiration of the last annual general meeting of the Corporation.

c. Meetings of the shareholders may be held at any place within Alberta or at any of the following cities: Vancouver, British Columbia; Victoria, British Columbia; Winnipeg, Manitoba; Toronto, Ontario; Ottawa, Ontario; Montreal, Quebec; or Halifax, Nova Scotia.

## Exhibit 4.1

**Exhibit 4.1**![LOGO](g948515g1003074040904.jpg)

**STOCK OPTION PLAN** 

**OBSIDIAN ENERGY LTD.** 

**Amended and Restated as of July 30, 2020** 

------

![LOGO](g948515g1003081210245.jpg)

**OBSIDIAN ENERGY LTD.** 

**STOCK OPTION PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Purpose of Plan** 

The purpose of this plan is to aid in attracting, retaining and motivating the directors, officers, employees and other eligible Service Providers of the Obsidian Energy Group in the growth and development of the Obsidian Energy Group by providing them with the opportunity through Options to acquire an increased proprietary interest in the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Administration** 

This Plan shall be administered by the Committee. The Committee shall have full and final discretion to interpret the provisions of this Plan and to prescribe, amend, rescind and waive rules and regulations to govern the administration and operation of this Plan, including without limitation rules as to vesting. All decisions and interpretations made by the Committee shall be binding and conclusive on the Optionees and the Corporation, subject to receipt of securityholder approval if required by any applicable stock exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Granting of Options** 

The Committee may from time to time designate the directors, officers and employees of, and other eligible Service Providers to, the Obsidian Energy Group to whom Options may be granted and the number of Common Shares to be optioned to each, provided that the number of Common Shares to be optioned shall not exceed the limitations provided in Section 4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Limitations to the Plan** 

Notwithstanding any other provision of this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the maximum number of Common Shares issuable (or reserved for issuance) on exercise of outstanding Options at
any time shall be limited to 9.0% of the aggregate number of issued and outstanding Common Shares, less the number of Common Shares issuable (or reserved for issuance) pursuant to all other Security Based Compensation Arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of Common Shares issuable to Insiders of the Corporation, at any time, under all Security Based
Compensation Arrangements, including this Plan, shall not exceed 10.0% of the issued and outstanding Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the number of Common Shares issued to Insiders of the Corporation, within any one year period, under all
Security Based Compensation Arrangements, including this Plan, shall not exceed 10.0% of the issued and outstanding Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the average Annual Grant Rate during any three consecutive calendar years (a "**Rolling Three Year Period**") shall not exceed 2.0%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the aggregate number of Common Shares that may be reserved for issuance pursuant to the exercise of Options
granted to Non-Management Directors pursuant to this Plan shall not exceed 1.0% of the Common Shares outstanding from time to time, and the aggregate value of Options granted to any one Non-Management Director during a calendar year shall not exceed $100,000.

------

For the purposes of this Section 4, any increase in the issued and outstanding Common Shares (whether as a result of the exercise of Options or otherwise) will result in an increase in the number of Common Shares that may be issued on exercise of Options outstanding at any time and any increase in the number of Options granted will, upon exercise, make new grants available under this Plan.

Options that are cancelled, terminated or expire prior to the exercise of all or a portion thereof shall result in the Common Shares that were reserved for issuance thereunder being available for a subsequent grant of Options pursuant to this Plan to the extent of any Common Shares issuable thereunder that are not issued under such cancelled, terminated or expired Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Vesting** 

The Committee may, in its sole discretion, determine: (i) the time during which Options shall vest; (ii) the method of vesting; or (iii) that no vesting restriction shall exist. In the absence of any determination by the Committee to the contrary, Options will vest and be exercisable as to one-fifth (1/5) of the total number of Common Shares subject to the Options on each of the first, second, third, fourth and fifth anniversaries of the date of grant (computed in each case to the nearest whole Common Share). Notwithstanding the foregoing, the Committee may, at its sole discretion at any time or in the Option Agreement in respect of any Options granted, accelerate or provide for the acceleration of vesting of Options previously granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Option Price** 

The exercise price of Options granted under the Plan shall be fixed by the Committee when such Options are granted, provided that the exercise price of Options shall not be less than the Market Price of the Common Shares at the time an Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Option Terms** 

The period during which an Option is exercisable shall, subject to the provisions of this Plan requiring or permitting acceleration of rights of exercise or the extension of the exercise period, be such period, not in excess of six (6) years, as may be determined from time to time by the Committee, but subject to the rules of any stock exchange or other regulatory body having jurisdiction, and in the absence of any determination to the contrary will be six (6) years from the date of grant (the "**Termination Date**"). In addition, unless the Corporation and an Optionee agree otherwise in an Option Agreement or other written agreement (such as an agreement of employment or consultancy), each Option shall provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) upon the death of the Optionee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Option shall terminate on the date determined by the Committee, which shall not be more than twelve
(12) months from the date of death and, in the absence of any determination to the contrary, will be twelve (12) months from the date of death (subject to earlier termination on the Termination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Common Shares that the Optionee (or his or her heirs or successors) shall be entitled to purchase
until such date of Option termination shall be all of the Common Shares that may be acquired on exercise of the Options held by such Optionee (or his or her heirs or successors) whether or not previously vested, and the vesting of all such Options
shall be accelerated on the date of death for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Optionee shall no longer be (x) an officer of or be in the employ of, or consultant or other
Service Provider to, any of the entities comprising the Obsidian Energy Group by reason of termination of the Optionee by the Obsidian Energy Group without cause, or (y) a director of the Corporation because the Optionee is removed as a
director of the Corporation by the shareholders of the Corporation, is disqualified to serve as a director of the Corporation, or such director's successor is elected or appointed (unless such director continues to be an officer or employee
of, or consultant or other Service Provider to, the Corporation after he or she ceases to be a director):

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Option shall terminate on the expiry of the period that is not less than 60 days and not in excess of 180
days (as prescribed by the Committee at the time of grant) following the date that the Optionee is terminated by the Obsidian Energy Group or ceases to be a director, and in the absence of any determination to the contrary by the Committee at the
time of grant, will terminate ninety (90) days following the date that the Optionee is terminated or ceases to be a director (subject to earlier termination on the Termination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Common Shares that the Optionee shall be entitled to purchase until such date of Option
termination shall be: (A) the number of Common Shares that the Optionee is entitled to purchase on exercise of vested Options on the date that the Optionee is terminated by the Obsidian Energy Group or ceases to be a director; plus (B) the
number of Common Shares that the Optionee is entitled to purchase on exercise of Options that vest following the date that the Optionee is terminated by the Obsidian Energy Group or ceases to be a director and up to and including the first to occur
of (I) the 60<sup>th</sup> day following the date that the Optionee is terminated by the Obsidian Energy Group or ceases to be a director, and (II) the Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Optionee shall no longer be an officer of or be in the employ of, or consultant or other Service
Provider to, any of the entities comprising the Obsidian Energy Group by reason of termination for cause, the Option shall terminate immediately on such termination for cause (whether notice of such termination occurs verbally or in writing);
provided that notwithstanding the foregoing, the Committee may, in its sole discretion, allow the Optionee to exercise any Options that were vested on the date that the Optionee was terminated for cause for a period of not more than 30 days
following such termination date (subject to earlier termination on the Termination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Optionee shall no longer be a director or officer of or be in the employ of, or consultant or other
Service Provider to, any of the entities comprising the Obsidian Energy Group by reason of the Optionee's resignation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Option shall terminate on the expiry of the period not in excess of 180 days (as prescribed by the
Committee at the time of grant) following the date that the Optionee resigns, and in the absence of any determination to the contrary by the Committee at the time of grant, will terminate thirty (30) days following the date that the Optionee
resigns (subject to earlier termination on the Termination Date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Common Shares that the Optionee shall be entitled to purchase until such date of Option
termination shall be the number of Common Shares that the Optionee was entitled to purchase on exercise of vested Options on the date that the Optionee resigned.

If the normal expiry date of any Options falls within any Black-Out Period or within seven (7) business days following the end of any Black-Out Period (the "**Restricted Options**"), then the expiry date of all Restricted Options shall, without any further action, be extended to the date that is seven (7) business days following the end of the Black-Out Period (or such longer period as permitted by the TSX and approved by the Committee). The foregoing extension applies to all Options whatever the date of grant and shall not be considered to be an extension of the term of the Options as contemplated by paragraph (iii) in Section 19 hereof.

This Plan does not confer upon an Optionee any right with respect to continuation of employment by or service provision to any of the entities comprising the Obsidian Energy Group, nor does it interfere in any way with the right of the Optionee or any of the entities comprising the Obsidian Energy Group to terminate the Optionee's employment or service provision at any time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Exercise of Option** 

Subject to the provisions of this Plan, an Option may be exercised from time to time by delivery to the Corporation at its head office in Calgary, Alberta or such other place as may be specified by the Corporation, of a written notice of exercise specifying the number of Common Shares with respect to which the Option is being exercised, and accompanied by payment in full of: (i) the purchase price of the Common Shares then being purchased; and (ii) any amount required to be paid pursuant to Section 20. Notwithstanding the foregoing, the Committee may, in its sole discretion, vary the aforementioned procedure for exercising an Option from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Cashless Exercise** 

Subject to the provisions of this Plan, if permitted by the Committee, an Optionee may elect to exercise an Option by surrendering such Option in exchange for the issuance of Common Shares equal to the number determined by dividing the Market Price (calculated as at the date of exercise) into the difference between the Market Price (calculated as at the date of exercise) and the exercise price of such Option. An Option may be exercised pursuant to this Section 9 from time to time by delivery to the Corporation at its head office in Calgary, Alberta or such other place as may be specified by the Corporation, of a written notice of exercise specifying that the Optionee has elected to make a cashless exercise of such Option and the number of Options to be exercised (provided that the Committee may, in its sole discretion, vary the aforementioned procedure for exercising an Option from time to time). The Corporation will not be required, upon the exercise of any Options pursuant to this Section 9, to issue fractions of Common Shares or to distribute certificates which evidence fractional Common Shares. In lieu of fractional Common Shares, the Corporation will pay to the Optionee within ten (10) business days after the exercise date, an amount in lawful money of Canada equal to the then Fair Market Value of such fractional interest, provided that the Corporation will not be required to make any payment, calculated as aforesaid, that is less than $10.00. Upon exercise of the foregoing, the number of Common Shares actually issued shall be deducted from the number of Common Shares reserved with the TSX for future issuance under the Plan and the balance of the Common Shares that were issuable pursuant to the Options so surrendered shall be considered to have been cancelled and available for further issuance. Any reference in this Section 9 to the issuance of Common Shares or the payment of cash is subject to compliance with Section 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Surrender Offer** 

An Optionee may make an offer (the "**Surrender Offer**") to the Corporation, at any time, for the disposition and surrender by the Optionee to the Corporation (and the termination thereof) of any of the Options granted hereunder for an amount (not to exceed the Fair Market Value of the Common Shares less the exercise price of the Options) specified in the Surrender Offer by the Optionee, and the Corporation may, but is not obligated to, accept the Surrender Offer, subject to any regulatory approval required. If the Surrender Offer, either as made or as renegotiated, is accepted, the Options in respect of which the Surrender Offer relates shall be surrendered and deemed to be terminated and cancelled and shall cease to grant the Optionee any further rights thereunder upon payment of the amount of the agreed Surrender Offer by the Corporation to the Optionee. The Corporation may, in its sole discretion, elect to allow an Optionee to claim such deductions in computing taxable income of such Optionee, if any, that may be available to the Optionee in respect of any amount received by the Optionee pursuant to this Section 10, provided that the Corporation shall be under no obligation, express or implied, to make such election. Any reference in this Section 10 to the payment of cash is subject to compliance with Section 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Alterations in Shares** 

In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) of any change in the Common Shares through subdivision, consolidation, reclassification, amalgamation, merger
or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that, as a result of any recapitalization, merger, consolidation or other transaction, the Common Shares are
converted into or exchangeable for any other securities or property;

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subject to any required approval of the TSX, the Board may make such adjustments to this Plan and to any Options outstanding under this Plan, and may make such amendments to any Option Agreements outstanding under this Plan, as the Board may, in its sole discretion, consider appropriate in the circumstances to prevent dilution or enlargement of the rights granted to Optionees hereunder and\or to provide for the Optionees to receive and accept such other securities or property in lieu of Common Shares, and the Optionees shall be bound by any such determination.

If the Corporation fixes a record date for a distribution to all or substantially all of the holders of the Common Shares of cash or other assets (other than a dividend in the ordinary course of business), subject to any required approval of the TSX, the Board may, in its sole discretion, but for greater certainty shall not be required to, make an adjustment to the exercise price of any Options outstanding on the record date for such distribution and make such amendments to any Option Agreements outstanding under the Plan to give effect thereto, as the Board may, in its sole discretion, consider appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Merger and Sale, etc.** 

Except in the case of a transaction that is a Change of Control and to which Sections 13 and 14 apply, if the Corporation enters into any transaction or series of transactions whereby the Corporation or all or substantially all of the assets of the Corporation and its Subsidiaries (on a consolidated basis) would become the property of any other trust, body corporate, partnership or other person (a "**Successor**"), whether by way of Takeover Bid, acquisition, reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise (each a "**Transaction**"), prior to or contemporaneously with the consummation of such Transaction the Corporation and the Successor will execute such instruments and do such things as the Committee may determine are necessary to establish that upon the consummation of such Transaction the Successor will assume the covenants and obligations of the Corporation under this Plan and the Option Agreements outstanding on consummation of such Transaction. Any such Successor shall succeed to, and be substituted for, and may exercise every right and power of the Corporation under this Plan and Option Agreements with the same effect as though the Successor had been named as the Corporation herein and therein and thereafter, the Corporation shall be relieved of all obligations and covenants under this Plan and such Option Agreements and the obligation of the Corporation to the Optionees in respect of the Options shall terminate and be at an end and the Optionees shall cease to have any further rights in respect thereof including, without limitation, any right to acquire Common Shares upon vesting of the Options.

Alternatively, and in lieu of making such provision, in the event of such Transaction (provided that if the Transaction constitutes a Takeover Bid, it (i) is not exempt from the takeover bid requirements of applicable securities legislation, and (ii) shall have been approved or recommended for acceptance by the Board) the Corporation shall have the right to satisfy any obligations to the Optionee in respect of any Options outstanding by paying to the Optionee, in cash, and as proceeds of disposition for an Optionee's Options, the difference between the exercise price of all unexercised Options granted hereunder and the fair market value of the securities to which the Optionee would be entitled upon exercise of all unexercised Options. The Corporation may, at its sole discretion, elect to allow an Optionee to claim such deductions in computing taxable income of such Optionee, if any, that may be available to the Optionee in respect of any amount received by the Optionee pursuant to this Section 12, however, the Corporation is under no obligation, express or implied, to make such election. Any determinations as to fair market value of any securities shall be made by the Committee, and any reasonable determination made by the Committee shall be binding and conclusive and, upon payment as aforesaid, the Options shall terminate and the Optionee shall cease to have any further rights in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Acceleration of Vesting** 

Notwithstanding any other provision in this Plan or the terms of any Option Agreement, if there takes place a Change of Control and within one (1) year of the Change of Control there is an event or events that constitute Good Reason for the Optionee, the Optionee shall have the right for a period of thirty (30) days following the event or events that constitute Good Reason to terminate their employment upon providing the Corporation with two (2) week's advance written notice (the "**Notice**"). In the event the Optionee makes such election, all issued and outstanding Options shall be exercisable (whether or not then vested) immediately prior to the time the Optionee provides the Notice and shall terminate on the 90<sup>th</sup> day after the occurrence of such Notice, or at such earlier time as may be established by the Board, in its absolute discretion, prior to the time such Notice takes place.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Change of Control** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) In the event of a Change of Control, all outstanding Options shall be replaced with similar options of the
entity resulting from the transaction on substantially the same terms and conditions as this Plan, unless such replacement is not possible or practical, as the Board may, in its sole discretion, determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) If such determination is made, the Committee may, in its sole discretion, accelerate the vesting of any or all
outstanding Options to provide that, notwithstanding Section 5 or any Option Agreement, such outstanding Options shall be fully vested and conditionally exercisable upon (or prior to) the completion of the transaction resulting in the Change of
Control provided that the Committee shall not, in any case, authorize the exercise of Options pursuant to this section beyond the Termination Date of the Options. In the event the Committee accelerates the vesting of outstanding Option pursuant to
this Section 14(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. All vested Options (including those whose vesting has been accelerated pursuant to this Section 14(b)),
unless exercised prior to or at the time of the Change of Control, will be purchased by the Corporation or a related entity for an amount per Option equal to the "Change of Control Price" (as defined below) less the applicable exercise
price (except that where the exercise price exceeds the Change of Control Price, the amount per Option for such Options shall be $0.01), as of the date such Change of Control is determined to have occurred or as of such other date prior to the
Change of Control as the Committee may determine. For purposes of this paragraph, "Change of Control Price" means the Fair Market Value of a Common Share based on the consideration payable in the Change of Control transaction as
determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. If, for any reason, the transaction that would result in a Change of Control is not completed, the Committee
may cause the acceleration of exercise periods of any Options or acceleration of the time for the fulfillment of any conditions or restrictions on such exercise of Options to be retracted and the vesting of such Options to revert to the manner
provided in the applicable Option Agreement, unless such Options have already been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **No Rights as a Shareholder** 

An Optionee shall have no rights or privileges whatsoever as a shareholder of the Corporation in respect of any Common Shares issuable upon exercise of an Option granted pursuant to this Plan (including any right to receive dividends or other distributions therefrom or thereon) other than in respect of Common Shares in respect of which the Optionee shall have exercised the Option to purchase hereunder and which the Optionee shall have actually taken up and paid for in accordance with this Plan (including without limitation Section 8 hereof) and in respect of which certificates shall have been issued and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Regulatory Authorities Approvals** 

This Plan shall be subject to the approval, if required, of any stock exchange on which the Common Shares are listed for trading. Any Options granted prior to receipt of such approval and after listing on any such stock exchange shall be conditional upon such approval being given and no such Options may be exercised unless such approval, if required, is given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Options to Companies** 

The provisions herein in respect of the grant of Options shall apply, with appropriate modifications, to the grant of Options to a company either: (i) wholly-owned by any person to whom Options may otherwise be granted hereunder; or (ii) controlled by any person to whom Options may otherwise be granted hereunder (and the shares of which are held directly or indirectly by any such person and such person's spouse, minor children and/or minor grandchildren); subject to any requirements of any applicable regulatory authority having jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Option Agreements** 

An agreement (an "**Option Agreement**") will be entered into between the Corporation and each Optionee to whom an Option is granted hereunder, which Option Agreement will set out the number of Common Shares subject to Option, the exercise price, the vesting dates, the expiry date and any other terms approved by the Committee, all in accordance with the provisions of this Plan. The Option Agreement will be in such form as the Committee may from time to time approve or authorize the officers of the Corporation to enter into and may contain such terms as may be considered necessary in order that the Option will comply with any provisions respecting Options in the income tax or other laws in force in any country or jurisdiction of which the person to whom the Option is granted may from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the Corporation. Such Option Agreements may also contain such other provisions as the Committee may determine. In the Committee's discretion, an Option Agreement may take the form of a physical or electronic notice delivered by the Corporation to the Optionee and setting out the terms of the grant of Options to the Optionee, and the Optionee's acceptance of such notice shall be deemed to be the agreement of the Optionee to accept the Options so granted based on the terms contained in this Plan and the notice of Option grant. In the event of a conflict between the terms of any Option Agreement and this Plan, the terms of this Plan shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Amendment or Discontinuance of the Plan** 

Subject to the restrictions set forth below, the Board may, by resolution, amend or discontinue this Plan and any Option granted under it (together with any related Option Agreement) at any time without shareholder approval; provided however, that without the prior approval of the shareholders of the Corporation (or such other approval as may be required by the TSX or such other stock exchange on which the Common Shares are listed and posted for trading), the Board may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase the maximum number of Common Shares issuable pursuant to this Plan as specified in paragraph 4(a)
hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reduce the exercise price of an Option or cancel an Option and subsequently issue the holder of such Option a
new Option or other entitlement in replacement thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) extend the term of an Option beyond the original expiry date of such Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) make an amendment to this Plan or an Option that would permit an Optionee to assign or transfer an Option to a
new beneficial Optionee, other than for estate settlement purposes in the case of the death of an Optionee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) make an amendment to this Plan that would add to the categories of persons eligible to participate in this
Plan, including to permit Non-Management Director participation on a discretionary basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) make an amendment to this Plan to remove or amend paragraphs 4(a) through 4(e), inclusive, of this Plan;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) make an amendment to this Plan to remove or amend this Section 19.

Any amendment to this Plan or to outstanding Options that requires approval of any stock exchange on which the Common Shares are listed for trading may not be made without the approval of such stock exchange.

The Board may amend or discontinue the Plan or outstanding Options at any time without the consent of an Optionee, provided that such amendment shall not adversely alter or impair any Option previously granted under the Plan, except as otherwise permitted hereunder.

The Committee may amend or terminate this Plan or any outstanding Option granted hereunder at any time without the approval of the shareholders of the Corporation or any Optionee whose Option is amended or terminated, in order to conform this Plan or such Option, as the case may be, to applicable law or regulation or the requirements of any relevant stock exchange or regulatory authority, whether or not that amendment or termination would affect any accrued rights, subject to the receipt of the approval of that stock exchange or regulatory authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** **Tax Withholding** 

The Corporation shall have the power and the right to deduct or withhold, or require (as a condition of exercise) an Optionee to remit to the Corporation, the required amount to satisfy, in whole or in part, federal, provincial, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan, including the grant or exercise of Options granted under this Plan. With respect to required withholding, the Corporation shall have the irrevocable right to (and the Optionee consents to) the Corporation setting off any amounts required to be withheld, in whole or in part, against amounts otherwise owing by the Corporation to such Optionee (whether arising pursuant to the Optionee's relationship as an officer or employee of the Corporation or as a result of the Optionee providing services on an ongoing basis to the Corporation or otherwise), or may make such other arrangements as are satisfactory to the Optionee and the Corporation. In addition, the Corporation may elect, in its sole discretion, to satisfy the withholding requirement, in whole or in part, by withholding such number of Common Shares as it determines are required to be sold by the Corporation, as trustee, to satisfy the withholding obligation net of selling costs (which costs shall be the responsibility of the Optionee and which shall be and are authorized to be deducted from the proceeds of sale). The Optionee consents to such sale and grants to the Corporation an irrevocable power of attorney to effect the sale of such Common Shares and acknowledges and agrees that the Corporation does not accept responsibility for the price obtained on the sale of such Common Shares. Any reference in this Plan to the issuance of Common Shares or a payment of cash is expressly subject to this Section 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.** **No Guarantees Regarding Tax Treatment** 

Optionees (or their beneficiaries) shall be responsible for all taxes with respect to any Option outstanding under this Plan, whether arising as a result of the grant or exercise of Options or otherwise. The Corporation and the Committee make no guarantees to any person regarding the tax treatment of an Option or payments made under this Plan and none of the Corporation or any of its directors, officers, employees or representatives shall have any liability to an Optionee with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.** **Cessation of Employment** 

For the purposes of this Plan and all Option Agreements, unless otherwise provided in the applicable Option Agreement or other written agreement (such as an agreement of employment), subject to the discretion of the Committee, an Optionee shall be deemed to have ceased to be a Service Provider to the Obsidian Energy Group (or any one of the entities comprising such group), and an Optionee shall be deemed to have been terminated or resigned from employment or a consulting arrangement with the Obsidian Energy Group (and each of the entities comprising such group) for the purposes hereof, on the first to occur of (i) the date of such termination or resignation, or (ii) the date (as determined by the Committee) that the Optionee ceases in the active performance of all of the regular duties of the Optionee's job, which includes the carrying on of all of the usual and customary day to day duties of the job for the normal and scheduled number of hours in each working day; the foregoing to apply whether or not adequate or proper notice of termination shall have been provided by and to the Obsidian Energy Group (or any one of the entities comprising such group) in respect of such termination of employment or consulting arrangement. For greater certainty, a transfer of the Optionee's employment or service from one member of the Obsidian Energy Group to another member of the Obsidian Energy Group shall not be deemed to be a cessation of employment or service for the purposes of this Agreement.

Notwithstanding the foregoing paragraph, it shall not be considered a termination of the Service Provider relationship if an Optionee is placed on a leave of absence ("**Leave**") which is considered by the Committee as continuing intact the Service Provider relationship. In such a case, the Service Provider relationship shall be continued until the later of (i) the date when the Leave equals ninety (90) days, and (ii) the date when an Optionee's right to re-employment shall no longer be guaranteed either by applicable laws or by contract; provided that in the event that active employment or service provision is not renewed at the end of the Leave, the Service Provider relationship shall be deemed to have ceased at the beginning of the Leave. If an Optionee shall take a Leave for a period of time that is greater than 90 days, the Committee may, in its sole discretion, modify or change the vesting terms of any Options granted to such Optionee in order to take into account the period of the Leave.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.** **Assignment** 

Options shall not be assignable by the Optionee either in whole or in part and, upon any purported assignment being made in contravention of the terms hereof, such Options shall become null and void and be of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.** **Applicable Law** 

This Plan shall be governed by and administered and construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.** **Defined Terms** 

Where used herein, the following terms shall have the following meanings, respectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Annual Grant Rate**" means the percentage obtained using the following formula:

% = 100 \* (X / Y)

where,

X = the number of Options granted in any calendar year; and

Y = the weighted average number of Common Shares that are outstanding (on a non-diluted basis) during such calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Black -Out Period**" means the period of time
when, pursuant to any policies of the Corporation, any securities of the Corporation may not be traded by certain persons as designated by the Corporation, including any holder of an Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Board**" means the board of directors of the Corporation as constituted from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**business day**" means a day other than a Saturday, Sunday or other day when banks in the City
of Calgary, Alberta are generally not open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Change of Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a successful Takeover Bid; or

(ii) (A) any change in the beneficial ownership or control of the outstanding securities or other interests of the Corporation which results in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) a person or group of persons "acting jointly or in concert" (within the meaning of NI 62-104); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) an affiliate or associate of such person or group of persons;

holding, owning or controlling, directly or indirectly, more than 50% of the outstanding voting securities or interests of the Corporation; and

(B) members of the Board who are members of the Board immediately prior to the earlier of such change and the first public announcement of such change cease to constitute a majority of the Board at any time within sixty days of such
change; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the winding up of the Corporation or the sale, lease or transfer of all or substantially all of the assets of
the Corporation and its Subsidiaries (on a consolidated basis) to any other person or persons (other than pursuant to an internal reorganization or in circumstances where the business of the Corporation is continued and where the shareholdings or
other securityholdings, as the case may be, in the continuing entity and the constitution of the board of directors or similar body of the continuing entity is such that the transaction would not be considered a "Change of Control" if
paragraph (e)(ii) above was applicable to the transaction); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any determination by a majority of the Board that a Change of Control has occurred or is about to occur and any
such determination shall be binding and conclusive for all purposes of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Common Shares**" means the common shares of the Corporation or, in the event of an adjustment
contemplated by Section 11 hereof, such other Common Shares to which an Optionee may be entitled upon the exercise of an Option as a result of such adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Committee**" means a committee of the Board comprised of one or more directors appointed from
time to time by the Board to administer this Plan or, if no such committee is appointed, the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Corporation**" means Obsidian Energy Ltd., and includes any successor corporation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fair Market Value**" with respect to a Common Share, as at any date, means the weighted
average of the prices at which the Common Shares traded on the TSX (or, if the Common Shares are not then listed and posted for trading on the TSX or are then listed and posted for trading on more than one stock exchange, on such stock exchange on
which the Common Shares are then listed and posted for trading as may be selected for such purpose by the Board in its sole and absolute discretion) for the five (5) trading days on which the Common Shares traded on the said exchange
immediately preceding such date. In the event that the Common Shares are not listed and posted for trading on any stock exchange, the Fair Market Value shall be the fair market value of the Common Shares as determined by the Board in its sole
discretion, acting reasonably and in good faith. If initially determined in United States dollars, the Fair Market Value shall be converted into Canadian dollars at an exchange rate selected and calculated in the manner determined by the Board from
time to time, acting reasonably and in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Good Reason**" shall mean any adverse change by the Corporation and without the agreement of
the Optionee in the duties, powers, rights, discretions, responsibilities, salary, title or lines of reporting, such that immediately after such change or series of changes, the responsibilities, status and compensation of the Optionee, taken as a
whole, are not at least substantially equivalent to those assigned to the Optionee immediately prior to such change or series of changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Insider** ", "**associate**" and "**affiliate**" each have the
meaning ascribed thereto in Part I of the Company Manual of the TSX, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Market Price**" means the volume weighted average trading price of the Common Shares on the
TSX for the five trading days immediately preceding the time of grant (or for the purposes of Section 9, the time of exercise), calculated by dividing the total value by the total volume of Common Shares traded for the five trading-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**NI 62-104**" means National Instrument 62-104 – *Take-Over Bids and Issuer Bids*, as amended from time to time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Non-Management Director**" means a director of the
Corporation who is not also an employee of the Corporation or a member of the Obsidian Energy Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Option**" means an option to purchase Common Shares granted pursuant to the provisions
hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Option Agreement**" has the meaning ascribed thereto in Section 18 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Optionees**" means persons to whom Options are granted and which Options, or a portion
thereof, remain unexercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Obsidian Energy Group**" means, collectively, the Corporation, any entity that is a
Subsidiary or an affiliate of the Corporation from time to time, and any other entity designated by the Board from time to time as a member of the Obsidian Energy Group for the purposes of this Plan (and, for greater certainty, including any
successor entity of any of the aforementioned entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Plan**" means this stock option plan of the Corporation, as the same may be amended or
amended and restated from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Security Based Compensation Arrangements**" has the meaning ascribed thereto in Part VI of
the Company Manual of the TSX, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Service Provider**" means a director, officer or employee of, or a person or company engaged
by, one or more of the entities comprising the Obsidian Energy Group to provide services for an initial, renewable or extended period intended to be twelve months or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Subsidiary**" has the meaning ascribed there in the *Securities Act* (Alberta);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Takeover Bid**" means a "take-over bid" as defined in NI 62-104, pursuant to which the "offeror" would as a result of such takeover bid, if successful, beneficially own, directly or indirectly, in excess of 50% of the outstanding Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**TSX**" means the Toronto Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.** **Effective Time** 

This Plan shall be effective as of January 1, 2011, as amended and restated as of June 5, 2013, March 9, 2016, May 9, 2016 and July 30, 2020.

## Exhibit 4.2

**Exhibit 4.2** 

**OBSIDIAN ENERGY LTD.** 

**RESTRICTED AND PERFORMANCE SHARE UNIT PLAN** 

**Originally dated as of September 24, 2009, as amended and restated as of January 1, 2011,** 

**March 6, 2014, March 11, 2015, March 9, 2016, June 26, 2017 and July 30, 2020.** 

The board of directors of Obsidian Energy Ltd. (the "**Corporation**") has adopted this Restricted and Performance Share Unit Plan (the "**Plan**") governing the grant of Share Unit Awards (as defined herein) to Service Providers (as defined herein) to the Corporation and its Affiliates (as defined herein).

**1.** **Purposes and Background** 

The principal purposes of the Plan are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to incentivize, retain and attract qualified Service Providers that the Corporation and its Affiliates require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to align the interests of the Service Providers with the interests of the Shareholders by (i) providing
Service Providers with an element of compensation that is based on the market performance of the Shares and the amount of Dividends paid on such Shares, and (ii) providing Service Providers with a means to accumulate a financial interest in the
Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to promote a proprietary interest in the Corporation by such Service Providers and to encourage such persons to
remain in the employ or service of the Corporation and its Affiliates and put forth maximum efforts for the success of the business and affairs of the Corporation and its Affiliates.

**2.** **Definitions** 

As used in this Plan, the following words and phrases shall have the meanings indicated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Adjustment Ratio**" means, with respect to any Share Unit Award, the ratio used to
adjust the number of Shares underlying such Share Unit Award and issuable on the applicable Payment Date, subject to and in accordance with the terms of the Plan; and, in respect of each Share Unit Award, the Adjustment Ratio shall initially be
equal to one, and shall be cumulatively adjusted on a compounding basis thereafter by increasing the Adjustment Ratio on each Dividend Payment Date that occurs between the Grant Date and the Payment Date, as applicable, effective on the day
following the corresponding Dividend Record Date, by an amount, rounded to the nearest six decimal places, equal to a fraction having as its numerator the value of the Dividend, expressed as an amount per Common Share, paid on that Dividend Payment
Date, and having as its denominator the Fair Market Value of the Shares on that Dividend Payment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Administrator**" means the Board, provided that if the Board delegates some or all of
its administrative responsibilities under this Plan to a committee of the Board or one of its members pursuant to Section 3, then "Administrator" shall refer to such committee of the Board or Board member, where applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affiliate**" means a corporation, partnership or trust that is affiliated with the
Corporation (within the meaning of the *Securities Act* (Alberta)), and for the purpose of this definition, a corporation, partnership or trust is affiliated with another corporation, partnership or trust if it directly or indirectly controls
or is directly or indirectly controlled by that other corporation, partnership or trust through the ownership of securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Black-Out Period**" means a period of time when,
pursuant to any policies of the Corporation, any securities of the Corporation may not be traded by certain persons as designated by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Board**" means the board of directors of the Corporation as it may be constituted from time
to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Cessation Date**" means, in respect of a Service Provider: (i) the date of the
termination of, or the resignation from, active employment with or consultancy to the Corporation or an Affiliate, as the case may be, regardless of whether adequate or proper advance notice of termination or resignation shall have been provided in
respect of such cessation of being a Service Provider; or (ii) the date of the Service Provider's death. For greater certainty, a transfer of employment or consultancy between the Corporation and an Affiliate or between Affiliates shall
not be considered an interruption or termination of the employment or consultancy of a Service Provider for any purpose of this Plan, unless otherwise determined by the Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Change of Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a successful Takeover Bid; or

(ii) &nbsp;&nbsp;&nbsp;&nbsp; a) any change in the beneficial ownership or control of the outstanding securities or other interests of the Corporation
which results in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) a person or group of persons "acting jointly or in concert" (within the meaning of NI 62-104); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) an affiliate or associate of such person or group of persons;

holding, owning or controlling, directly or indirectly, more than 50% of the outstanding voting securities or interests of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;b) members of the Board who are members of the Board immediately prior to the earlier of such change and the first public announcement of such change cease to constitute a majority of the Board at any time within sixty days of such change; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the winding up of the Corporation or the sale, lease or transfer of all or substantially all of the assets of
the Corporation and its Subsidiaries (on a consolidated basis) to any other person or persons (other than pursuant to an internal reorganization or in circumstances where the business of the Corporation is continued and where the shareholdings or
other securityholdings, as the case may be, in the continuing entity and the constitution of the board of directors or similar body of the continuing entity is such that the transaction would not be considered a "Change of Control" if
paragraph (g)(ii) above was applicable to the transaction); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any determination by a majority of the Board that a Change of Control has occurred or is about to occur and any
such determination shall be binding and conclusive for all purposes of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Continuing Entity**" has the meaning set forth in Section 7 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Corporate Performance Measures**" for any Performance Period, means the performance measures
to be taken into consideration in granting PSU Awards and determining the Payout Multiplier in respect of any PSU Award, which may include, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Relative Total Shareholder Return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. recycle ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. activities related to the growth of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. average production volumes of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. unit costs of production of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. total proved reserves (on a net basis) of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. key leading and lagging indicators of health, safety and environmental performance of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. the execution of the Corporation's strategic plan as determined by the Administrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. such additional or alternative measures as the Administrator, in its sole discretion, shall consider
appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Dividend**" means a dividend declared and paid by the Corporation in respect of the Shares,
whether payable in cash, Shares of other securities or other property, expressed as an amount per Share in Canadian dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Dividend Payment Date**" means any date that a Dividend is paid to Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Dividend Record Date**" means the applicable record date in respect of any Dividend used to
determine the Shareholders entitled to receive such Dividend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Exchange**" means the Toronto Stock Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Expiry Date**" has the meaning set forth in Subsection 6(c)(iv) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Fair Market Value**" with respect to a Share, as at any date, means the weighted average of
the prices at which the Shares traded on the Exchange (or, if the Shares are not then listed and posted for trading on the Exchange or are then listed and posted for trading on more than one stock exchange, on such stock exchange on which the Shares
are then listed and posted for trading as may be selected for such purpose by the Administrator in its sole discretion, acting reasonably) for the five Trading Days immediately preceding such date. In the event that the Shares are not listed and
posted for trading on any stock exchange, the Fair Market Value shall be the fair market value of the Shares as determined by the Administrator in its sole discretion, acting reasonably and in good faith. If initially determined in United States
dollars, the Fair Market Value shall be converted into Canadian dollars at an exchange rate selected and calculated in the manner determined by the Administrator from time to time acting reasonably and in good faith;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Good Reason**" shall mean any adverse change by the Corporation, on or following a Change of
Control, without the agreement of a Grantee, in the duties, powers, rights, discretions, responsibilities, salary, title or lines of reporting, such that immediately after such change or series of changes, the responsibilities, status and
compensation of the Grantee, taken as a whole, are not at least substantially equivalent to those assigned to the Grantee immediately prior to such change or series of changes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Grant Date**" means the date on which a Share Unit Award is granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Grantee**" has the meaning set forth in Section 4 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Insider**" means an insider of the Corporation, as defined in the applicable rules of the
Exchange for this purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Leave of Absence**" means a period of time during which a Service Provider continues to be a
Service Provider notwithstanding that the Service Provider is not actively providing employment or other services to the Corporation or an Affiliate (including, without limitation, a Service Provider on a parental leave, an educational leave or a
medical leave (and whether paid or unpaid)), and which period of time is designated as a "Leave of Absence" by the Administrator (in its sole and absolute discretion), provided however that such period of time must be in excess of 90
days to qualify as a Leave of Absence for the purposes of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Leave Ratio**" means, with respect to any Share Unit Award, the ratio used to adjust the
notional number of Shares to be issued on the applicable Payment Date pertaining to such Share Unit Award for periods of time that the Grantee of such Share Unit Award is on a Leave of Absence and, shall be an amount, rounded to the nearest six
decimal places, equal to a fraction having as its numerator the total number of days between the date of grant of such Share Unit Award and the RSU Vesting Date or PSU Vesting Date, as applicable, that the Grantee has not been on a Leave of Absence
(provided for clarity, that the first 90 days of a Leave of Absence shall be excluded from the numbers of days in the calculation), and having as its denominator, the total number of days between the Grant Date and the RSU Vesting Date or PSU
Vesting Date, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**NI 62-104**" means National Instrument 62-104 – *Take-Over Bids and Issuer Bids*, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Non-Management Director**" means a director of the
Corporation who is not also an employee of the Corporation or any Affiliate of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Payment Date**" means, with respect to any Share Unit Award, the date upon which the
Corporation shall pay cash or issue Shares to the Grantee as payment of all or a portion of the Settlement Amount to which the Grantee is entitled pursuant to such Share Unit Award in accordance with the terms hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Payout Multiplier**" means a number ranging from a minimum of zero (0) to a maximum of
two (2);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Performance Group**" means, generally, public North American oil and gas issuers that are
competitors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Performance Period**" means the period as designated by the Administrator applicable to a PSU
Award made hereunder, subject to adjustment or modification pursuant to the terms and conditions of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**PSU Award**" means an award under the Plan designated as a "PSU Award", pursuant
to which a cash payment shall be made or Shares shall be issued to the Grantee on the applicable Payment Date(s), determined subject to and in accordance with the terms and conditions of the Plan and which shall, unless otherwise determined by the
Administrator, initially represent one notional Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**PSU Vesting Date**" means the date on which a PSU Award, or portion thereof, vests and
becomes payable to a Grantee pursuant to the terms of Subsection 6(c)(ii) hereof, except as otherwise contemplated in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Relative Total Shareholder Return**" means the percentile rank, expressed as a whole number,
of the Corporation's Total Shareholder Return relative to returns calculated on a similar basis on equity securities of members of the Performance Group during the applicable Performance Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**RSU Award**" means an award under the Plan designated as a "RSU Award", pursuant
to which a payment shall be made or Shares shall be issued to the Grantee on the applicable Payment Date(s), determined subject to and in accordance with the terms and conditions of the Plan and which shall, unless otherwise determined by the Board,
initially represent one notional Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**RSU Vesting Date**" means the date on which an RSU Award, or portion thereof, vests and
becomes payable to a Grantee pursuant to the terms of the Plan as set forth in Subsection 6(c)(i) hereof, except as otherwise contemplated in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Security Based Compensation Arrangement**" has the meaning ascribed thereto in Part VI of the
Company Manual of the Exchange, as amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Service Providers**" means full-time or part-time employees and consultants of the
Corporation and its Affiliates who are designated by the Administrator from time to time as eligible to participate in this Plan; for greater certainty, Non-Management Directors shall not be eligible to
participate in this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Settlement Amount**" has the meaning ascribed thereto in Section 6(d)(i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Share Unit Award**" means an RSU Award or PSU Award, as applicable, made pursuant to the
Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Share Unit Award Agreement**" means a written agreement between the Corporation and the
Grantee or an award letter or other confirmation from the Corporation evidencing a grant of RSU Awards or PSU Awards made pursuant to the Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Shareholder**" means a holder of Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Shares**" means common shares in the capital of the Corporation or, in the event of an
adjustment contemplated by Section 7, such other securities resulting from such adjustment, and includes any securities of the Continuing Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Subsidiary**" has the meaning ascribed there in the *Securities Act* (Alberta);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Takeover Bid**" means a "take-over bid" as defined in NI 62-104, pursuant to which the "offeror" would as a result of such takeover bid, if successful, beneficially own, directly or indirectly, in excess of 50% of the outstanding Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Total Shareholder Return**" means, with respect to any Performance Period, the total return
to shareholders on Shares calculated using cumulative Dividends or other distributions on a reinvested basis (as such Dividends or other distributions occur) and the change in the trading price of the Shares on the Exchange over such period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Trading Day**" means a day on which the Shares trade on the Exchange (or, if the Shares are
not then listed and posted for trading on the Exchange or are then listed and posted for trading on more than one stock exchange, on such stock exchange on which the Shares are then listed and posted for trading as may be selected for such purpose
by the Board in its sole and absolute discretion).

**3.** **Administration** 

Subject to Section 10 hereof, the Administrator shall have the authority in its discretion, subject to and not inconsistent with the express provisions of this Plan, to administer this Plan and to exercise all the powers and authorities either specifically granted to it under this Plan or necessary or advisable in the administration of this Plan, including, without limitation, the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) determine the Fair Market Value of the Shares on any date in accordance with the definition of Fair Market
Value contained herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) determine the Service Providers to whom, and the time or times at which, Share Unit Awards shall be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) determine the number of Share Unit Awards granted to each Service Provider, if any, and to grant Share Unit
Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) prescribe, amend and rescind rules and regulations governing the operation of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) interpret and construe this Plan and to determine all questions arising out of this Plan and any Share Unit
Award granted pursuant to this Plan (and any such interpretation, construction or determination made by the Administrator shall be final, binding and conclusive for all purposes on the Corporation and the Grantee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) determine the terms and conditions of Share Unit Award Agreements (which need not be identical) entered into in
connection with the grant of Share Unit Awards and the form of documents or processes in respect of the payment of Share Unit Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) determine whether payment of vested Share Unit Awards are to be made in cash or Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) determine the Payment Date with respect to any Share Unit Award, subject to the provisions of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determine the number of Shares to be referenced by each Share Unit Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) determine all matters relating to the determination of the Performance Group (if any), the Performance Period
and the Payout Multiplier to be applied to any grant of PSU Awards from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) determine whether any vesting criteria shall apply to any particular Share Unit Award and, if so, to determine
such vesting criteria; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) make all other determinations deemed necessary or advisable for the administration of this Plan.

The Administrator may delegate to one or more persons (including without limitation any committee of the Board or Board member) such administrative duties as it may deem advisable, and the Administrator or any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility that the Administrator or such person may have under this Plan.

For greater certainty, and without limiting the discretion conferred on the Administrator pursuant to this Section 3, the Administrator's decision to approve the grant of a Share Unit Award in any period to a Service Provider shall not require the Administrator to approve the grant of a Share Unit Award to any Service Provider in any other period; nor shall the Administrator's decision with respect to the size or terms and conditions of a Share Unit Award in any period require it to approve the grant of a Share Unit Awards of the same or similar size or with the same or similar terms and conditions to any Service Provider in any other period; nor shall the Administrator's determination to pay the Settlement Amount in respect of a particular Share Unit Award in cash or Shares, as the case may be, require the Administrator to determine that the same form of payment must be made in respect of any other Share Unit Award. The Administrator shall not be precluded from approving the grant of a Share Unit Award to any Service Provider solely because such Service Provider may previously have been granted a Share Unit Award under this Plan or any other similar compensation arrangement of the Corporation or an Affiliate. No Service Provider has any claim or right to be granted a Share Unit Award.

**4.** **Eligibility and Award Determination** 

Share Unit Awards may be granted by the Administrator from time to time, at its sole discretion, to Service Providers; provided, however, that the participation of a Service Provider in the Plan is voluntary. In determining the Service Providers to whom Share Unit Awards may be granted ("**Grantees**") and the number of Share Unit Awards granted to a Service Provider, the Administrator may take into account such factors as it shall determine in its sole and absolute discretion including, if so determined by the Administrator, any one or more of the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) compensation data obtained in respect of the Corporation's peer group (as determined by the Administrator
in its sole discretion) for positions that are comparable to those held by a Grantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the duties, responsibilities, position and seniority of a Grantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the individual contributions and potential contributions of a Grantee to the success of the Corporation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any cash bonus payments paid or to be paid to a Grantee in respect of his or her individual contributions and
potential contributions to the success of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Fair Market Value of the Shares at the time of the grant of any Share Unit Awards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such other factors as the Administrator shall deem relevant in its sole discretion in connection with
accomplishing the purposes of the Plan.

**5.** **Shares Subject to the Plan** 

Notwithstanding any other provision of this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the number of Shares reserved that are available to be issued from time to time pursuant to granted and
outstanding Share Unit Awards under this Plan shall not exceed 4.5% of the aggregate number of issued and outstanding Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the number of Shares issuable to Insiders of the Corporation, at any time, under all Security Based
Compensation Arrangements, including this Plan, shall not exceed 10% of the issued and outstanding Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the number of Shares issued to Insiders of the Corporation, within any one year period, under all Security
Based Compensation Arrangements, including this Plan, shall not exceed 10% of the issued and outstanding Shares.

For the purposes of this Plan, any increase in the issued and outstanding Shares will result in an increase in the number of Shares that are available to be issued under the Plan pursuant to Subsection 5(a). Following the settlement, exercise, expiration, cancellation or other termination of any Share Unit Awards under the Plan (regardless of the form of payment in respect thereof), a number of Shares equal to the notional number of Shares underlying the Share Unit Awards so settled, exercised, expired, cancelled or terminated shall automatically become available for issuance in respect of Share Unit Awards that may subsequently be granted under the Plan.

**6.** **Terms and Conditions of Share Unit Awards** 

Each Share Unit Award granted under this Plan shall be subject to the terms and conditions of this Plan and evidenced by a Share Unit Award Agreement, which agreement shall comply with, and be subject to, the following terms and conditions (and with such other terms and conditions not inconsistent with the terms of this Plan as the Administrator, in its sole discretion, shall establish):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  ***Number and Type of* Share Unit Awards** — The Administrator shall determine (in
accordance with the provisions set forth in Section 4 of this Plan) the number of Share Unit Awards to be granted to each Grantee and shall designate such award as either a "RSU Award" or a "PSU Award", as applicable, in
the Share Unit Award Agreement relating thereto. Notwithstanding the foregoing, Share Unit Awards shall not be granted during a Black-Out Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)  ***PSU Award Payout Multiplier –*** The Board shall specify the criteria required to assess the
performance of the Corporation during a Performance Period at the time that PSU Awards are granted (which criteria may vary for different grants of PSU Awards), including without limitation:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporate Performance Measure(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the members of the Performance Group (if any); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the calculation methodology used to determine the Payout Multiple based on the performance ranking of the
Corporation.

Once a Performance Group (if any) has been determined for a particular Performance Period, it cannot be amended, provided that if during a Performance Period one of the entities comprising the Performance Group: (i) ceases to exist; (ii) ceases to be a publicly listed entity; or (iii) otherwise, in the opinion of the Board having regard to the principal purposes of the Plan, ceases to be an appropriate member of the Performance Group; it may be removed from the Performance Group by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  ***Vesting Dates, Payment Dates and Adjustment of Share Unit Awards*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>RSU Awards</u> – Subject to the remainder of this Section 6 (and subject to the
Administrator's determination, in its absolute and sole discretion, to establish a vesting schedule other than the vesting schedules identified below, provided that such alternative vesting schedule complies with the other terms and conditions
of this Plan), the RSU Vesting Date for a particular RSU Award shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) as to one-third of the RSU Awards granted, on the first anniversary of
the Grant Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) as to one-third of the RSU Awards granted, on the second anniversary of
the Grant Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) as to the remaining one-third of the RSU Awards granted, on the third
anniversary of the Grant Date.

Subject to the remainder of this Section 6 and unless otherwise determined by the Administrator at the time of grant, the Payment Date for an RSU Award shall be as soon as practicable following the RSU Vesting Date, and in any event within 30 days of the RSU Vesting Date. Payment for a vested RSU Award shall be made by the Corporation to the Grantee on the corresponding Payment Date in accordance with Subsection 6(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>PSU Awards</u> – Subject to the remainder of this Section 6 (and subject to the
Administrator's determination, in its absolute and sole discretion, to establish a vesting schedule other than the vesting schedules identified below, provided that such alternative vesting schedule complies with the other terms and conditions
of this Plan), the PSU Vesting Date for a particular PSU Award shall be the date that is the later of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the date of completion of the Performance Period applicable to such PSU Award; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the third anniversary of the Grant Date of such PSU Award.

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Subject to the remainder of this Section 6 and unless otherwise determined by the Administrator at the time of grant, the Payment Date for a PSU Award shall be as soon as practicable following the PSU Vesting Date, and in any event within 90 days of the PSU Vesting Date. Payment for a vested PSU Award shall be made by the Corporation to the Grantee on the corresponding Payment Date in accordance with Subsection 6(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Adjustment of Share Unit Awards</u> – Immediately prior to each Payment Date, the number of Shares
notionally underlying a Share Unit Award shall be adjusted by multiplying such number by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the Leave Ratio applicable in respect of such Share Unit Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the Adjustment Ratio applicable in respect of such Share Unit Award; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the Payout Multiplier applicable to such Share Unit Award, in the case of a PSU Award;

provided however, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) if a Grantee has been on a Leave of Absence at any time since the Grant Date in respect of such Share Unit
Award, the Adjustment Ratio shall not be adjusted for any Dividends paid during the period of such Leave of Absence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) subject to any required approvals that may be required by the Exchange and notwithstanding any other provision
of this Plan, the Board hereby reserves the right to make any additional adjustments to the number of Shares notionally underlying any Share Unit Award if, in the sole discretion of the Board, such adjustments are appropriate in the circumstances
having regard to the principal purposes of the Plan and terms of the Share Unit Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Final Payment Date</u> – Notwithstanding any other provision of this Plan to the contrary, for greater
certainty, no term or condition of a grant of Share Unit Awards hereunder or any Share Unit Award Agreement may have the effect of causing the payment or issuance of Shares pursuant to any RSU Award or PSU Award under the Plan to a Grantee in
satisfaction of such Grantee's RSU Awards or PSU Awards under the Plan (or any portion thereof) to occur after December 31<sup>st</sup> in the third (3rd) calendar year following the calendar year in
respect of which such Share Unit Awards were granted (the "**Expiry Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)  ***Payment for Vested Share Unit Awards*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Corporation shall satisfy all amounts owing or payable to a Grantee in respect a Share Unit Award that has
vested and become payable pursuant to this Plan by, at the option of the Board, in its sole discretion, any of the following methods or by a combination thereof: (i) paying to the Grantee, on the applicable Payment Date, an amount in cash equal
to the Fair Market Value of the Shares notionally underlying such Share Unit Awards; or (ii) issuing to the Grantee on the Payment Date the number of fully paid and non assessable Shares notionally underlying such Share Unit Awards, in each
case as adjusted in accordance with the relevant provisions set forth in Subsection 6(c) (the "**Settlement Amount** "), in consideration for the deemed surrender by the Grantee to the Corporation of such vested Share Unit Awards. On
the applicable Payment Date, the Corporation shall cause a cash payment to be made to the Grantee (or as the Grantee may direct) or a certificate representing the Shares to be issued in the name of the Grantee (or as the Grantee may direct) as
payment of the Settlement Amount and such Share Unit Awards in respect of which such payment or issuance has been made shall be deemed to be cancelled. The Corporation shall not be required to determine whether the payment method shall take the form
of cash or Shares until the Payment Date, or some reasonable time prior thereto. A holder of a Share Unit Award shall not have any right to demand the form of payment in respect of the Settlement Amount, at any time. Notwithstanding any election by
the Corporation to settle any Settlement Amount, or portion thereof, in cash or Shares, the Corporation reserves the right to change its election in respect thereof at any time up until payment is actually made, and the holder of such Share Unit
Award shall not have the right, at any time to enforce settlement in any particular form of payment.

------

If the Board determines to issue Shares as payment for the Settlement Amount, the Shares shall be issued from treasury or, at the option of the Board, acquired on the Exchange, or a combination thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation (or other Affiliate) shall be entitled to withhold from the Settlement Amount (whether the
Grantee receives cash or Shares as payment of the Settlement Amount) all amounts as may be required by law and in the manner contemplated by Section 8 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event of a payment of Shares where the Grantee is due to receive a fractional numbers of Shares, subject
to the discretion of the Administrator, the Corporation will round the Share payment to the nearest whole number of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding any of the foregoing, if the Payment Date occurs during a Black-out Period applicable to the relevant Grantee, then the Payment Date shall not occur until the date that is the sixth business day after the expiry of the Black-out Period, unless such extension would cause the Payment Date to extend beyond the Expiry Date, in which case (A) the Payment Date shall remain on the Expiry Date, (B) the payment of the
Settlement Amount shall be made by a cash payment and not Shares (and, for greater certainty, the Corporation shall not have any right to pay the Settlement Amount in whole or in part in Shares notwithstanding any other provision of this Plan or any
Share Unit Award Agreement), and (C) the Fair Market Value utilized in determining the Settlement Amount in respect of such Payment Date shall be the lesser of the Fair Market Value determined based on: (i) the Trading Day immediately
prior to the commencement of such Black-Out Period; and (ii) the Trading Day immediately prior to the Expiry Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)  ***Termination of Relationship as Service Provider*** – Unless otherwise determined by the
Administrator (in its sole and absolute discretion) or unless otherwise provided in an Share Unit Award Agreement pertaining to a particular Share Unit Award or any written employment or consulting agreement governing a Grantee's role as a
Service Provider, the following provisions shall apply in the event that a Grantee ceases to be a Service Provider.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Termination for cause</u>* – If a Grantee ceases to be a Service Provider as a result of
termination for cause, effective as of the Cessation Date, all outstanding Share Unit Awards and the Share Unit Award Agreements under which such Share Unit Awards have been granted to such Grantee shall be terminated, and all rights to receive cash
or Share payments thereunder shall be forfeited by the Grantee, and the Grantee shall not be entitled to receive any compensation in lieu thereof thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Termination not for cause</u>* – If a Grantee ceases to be a Service Provider as a result of
being terminated other than a termination for cause, effective as of the date which is 90 days following the Cessation Date, and notwithstanding any other severance entitlements or entitlement to notice or compensation in lieu thereof, all
outstanding Share Unit Awards and the Share Unit Award Agreements under which such Share Unit Awards have been granted to such Grantee shall be terminated, and all rights to receive cash or Share payments thereunder shall be forfeited by the
Grantee, and the Grantee shall not be entitled to receive any compensation in lieu thereof thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Voluntary Resignation</u>* – If a Grantee voluntarily ceases to be a Service Provider for any
reason other than such Grantee's death, effective as of the Cessation Date, all outstanding Share Unit Awards and Share Unit Award Agreements under which such Share Unit Awards have been granted to such Grantee shall be terminated, and all
rights to receive cash or Share payments thereunder shall be forfeited by the Grantee, and the Grantee shall not be entitled to receive any compensation in lieu thereof thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *<u>Death</u>* — If a Grantee ceases to be a Service Provider as a result of such Grantee's
death, the vesting date for all Share Unit Awards granted to such Grantee under any outstanding Share Unit Award Agreements shall be effective as of the Cessation Date, and the Payout Multiplier applicable to any PSU Awards held by the Grantee at
the time of death shall be determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)  ***Effect of Certain Changes*** — In the event: (i) of any change in the Shares through
subdivision, consolidation, reclassification, recapitalization or a similar transaction; (ii) that any rights are granted to Shareholders to purchase Shares at prices substantially below Fair Market Value; or (iii) that, as a result of any
recapitalization, amalgamation, merger, arrangement or other transaction (including, without limitation, a change of the legal structure of the Corporation from a corporation to another form of legal entity), the Shares are converted into or
exchangeable for any other securities; and such event does not constitute a transaction for the purposes of Section 7, then in any such case the Board may, subject to obtaining any required approvals that the Exchange may require, make such
adjustments to the Plan, to any Share Unit Awards outstanding under the Plan, and to any Share Unit Award Agreements governing such outstanding Share Unit Awards, as the Board may, in its sole and absolute discretion, acting reasonably, consider
appropriate in the circumstances to prevent dilution or enlargement of the rights granted to Grantees hereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)  ***Change of Control*** – Notwithstanding Subsection 6(e)(i) or (ii) hereof, in the event of
any Change of Control of the Corporation prior to the Payment Date or Payment Dates, and regardless of whether or not a Grantee is on a Leave of Absence if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Grantee is terminated without cause in connection with such Change of Control or within the six
(6) months following a Change of Control, the Payment Date or Payment Dates for all Share Unit Awards held by the Grantee regardless of whether the vesting date has occurred, as applicable, shall be the Cessation Date and the Payout Multiplier
applicable to any PSU Awards shall be determined by the Board, acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within six (6) months following a Change of Control, the Grantee voluntarily resigns for an event or
events which constitute Good Reason, the Payment Date or Payment Dates for all Share Unit Awards held by the Grantee regardless of whether the vesting date has occurred, as applicable, shall be the Cessation Date and the Payout Multiplier applicable
to any PSU Awards shall be determined by the Board, acting reasonably.

**7.** **Business Combination and Certain Adjustments** 

Subject to Subsection 6(g), if the Corporation enters into any transaction or series of transactions, whereby the Corporation or all or substantially all of the Shares of the Corporation or all or substantially all of the Corporation's property or assets become the property of any other trust, body corporate, partnership or other person (a "**Continuing Entity**") whether by way of take-over bid, acquisition, reorganization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise, then prior to or contemporaneously with the consummation of such transaction(s) the Corporation and the Continuing Entity shall execute such instruments and do such things as are necessary to establish that upon the consummation of such transaction(s) the Continuing Entity will have assumed all the covenants and obligations of the Corporation under this Plan and the Share Unit Awards and Share Unit Award Agreements outstanding on consummation of such transaction(s) in a manner that substantially preserves and does not impair the rights of the Grantees thereunder in any material respect (including the ability to receive shares, securities or other property of the Continuing Entity on the Payment Date(s) applicable to such Share Unit Awards and adjusted appropriately to give effect to such transaction(s) and which shares, securities or other property of the Continuing Entity the Grantee shall accept in lieu of cash or Shares), and subject to compliance with this Section 7, any such Continuing Entity shall succeed to, and be substituted for, and may exercise every right and power of, the Corporation under this Plan and such Share Unit Award Agreements with the same effect as though the Continuing Entity had been named as the Corporation herein and therein and thereafter, the Corporation shall be relieved of all obligations and covenants under this Plan and such Share Unit Award Agreements and the obligation of the Corporation to the Grantees in respect of the Share Unit Awards shall terminate and be at an end and the Grantees shall cease to have any further rights in respect thereof.

**8.** **Taxes** 

The Corporation shall have the power and the right to deduct or withhold, or require (as a condition of vesting or payment) a Grantee to remit to the Corporation, the required amount to satisfy, in whole or in part, federal, provincial, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan, including the grant or vesting of Share Unit Awards granted under this Plan. With respect to required withholding, the Corporation shall have the irrevocable right to (and the Grantee consents to): (i) the Corporation setting off any amounts required to be withheld, in whole or in part, against amounts otherwise owing by the Corporation to such Grantee (whether arising pursuant to the Grantee's relationship as an officer or employee of the Corporation or as a result of the Grantee providing services on an ongoing basis to the Corporation or otherwise), or may make such other arrangements as are satisfactory to the Grantee and the Corporation; and/or (ii) where the Corporation has elected to issue Shares to the Grantee, withhold from the Shares otherwise due to the Grantee such number of Shares as the Corporation determines are required to be sold by the Corporation, as trustee, to satisfy the total withholding tax obligation (net of selling costs), and the Grantee consents to such sale and grants to the Corporation an irrevocable power of attorney to effect the sale of such Shares and acknowledges and agrees that the Corporation does not accept responsibility for the price obtained on the sale of such Shares. Any reference in this Plan to a payment of cash or Shares is expressly subject to this Section 8.

------

Grantees (or their beneficiaries) shall be responsible for all taxes with respect to any Share Unit Awards outstanding under this Plan, whether arising as a result of the grant or vesting of Share Unit Awards or otherwise. The Corporation and the Administrator make no guarantees to any person regarding the tax treatment of a Share Unit Award or payments made under this Plan and none of the Corporation or any of its directors, officers, employees or representatives shall have any liability to a Grantee with respect thereto.

**9.** **Non-Transferability** 

Subject to Subsection 6(e)(iv), the right to receive Shares pursuant to a Share Unit Award granted to a Grantee is personal to such Grantee and is non-transferable and non-assignable. Unless otherwise permitted by this Plan, no assignment, sale, transfer, pledge or charge of a Share Unit Award, whether voluntary, involuntary, by operation of law or otherwise (except by will or the laws of descent and distribution), vests any interest or right in such Share Unit Award whatsoever in any assignee or transferee and, immediately upon any assignment, sale, transfer, pledge or charge or attempt to assign, sell, transfer, pledge or charge a Share Unit Award, such Share Unit Award shall terminate and be of no further force or effect.

**10.** **Amendment and Termination of Plan** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Subsections 10(b) and (c), the Corporation retains the right by resolution of the Board, at any time
and from time to time, without the approval of the Shareholders or any other voting securities of the Corporation, to suspend, discontinue or amend the Plan or a Share Unit Award made thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Subsection 10(a), the Board may not, without the approval of the Shareholders to be received in
such manner as may be required by the policies of the Exchange, amend the Plan or a Share Unit Award to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase the percentage of the issued and outstanding Shares that are available to be issued pursuant to
granted and outstanding Share Unit Awards at any time pursuant to Subsection 5(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) increase the number of Shares that may be issued to Insiders of the Corporation above the restrictions
contained in Subsections 5(b) and 5(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) permit Non-Management Directors to be Service Providers or in any other
way permit Non-Management Directors to become eligible to receive Share Unit Awards under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) extend the Expiry Date of any Share Unit Award granted under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) permit the transfer or assignment of Share Unit Awards, except in the case of death of a Grantee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) make any amendments to this Section 10.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding Subsection 10(a), unless a holder of Share Unit Awards otherwise agrees, the Board may not
suspend, discontinue or amend the Plan or amend any outstanding Share Unit Awards in a manner that would adversely alter or impair any Share Unit Award previously granted to a Grantee under the Plan, and any such suspension, discontinuance or
amendment of the Plan or amendment to a Share Unit Award shall apply only in respect of Share Unit Awards granted on or after the date of such suspension, discontinuance or amendment. No suspension, discontinuance or amendment of the Plan or
amendment of a Share Unit Award may contravene the requirements of the Exchange or any securities commission or regulatory body to which the Plan, the Share Unit Award or the Corporation is now or may hereafter be subject.

**11.** **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  ***Effect of Headings*** — The section and subsection headings contained herein are for
convenience only and shall not affect the construction hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)  ***Non-Exclusivity*** – Nothing contained herein will
prevent the Board from adopting other or additional compensation arrangements for the benefit of any Service Provider, subject to any required regulatory, Exchange or Shareholder approval.  **** ** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  ***Unfunded Plan*** – To the extent any individual holds any rights under the Plan, such rights
shall be no greater than the rights of an unsecured general creditor of the Corporation, unless otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)  ***Compliance with Legal Requirements*** – The Corporation may, in its sole discretion, postpone
the issuance or delivery of any Shares that it elects to issue as payment for any Share Unit Awards as the Board may consider appropriate, and may require any Grantee to make such representations and furnish such information as it may consider
appropriate in connection with the issuance or delivery of a cash payment or Shares in compliance with applicable laws, rules and regulations. The Corporation shall not be required to qualify for resale pursuant to a prospectus or similar document
any Shares awarded under the Plan, provided that, if required, the Corporation shall notify the Exchange and any other appropriate regulatory bodies in Canada of the existence of the Plan and the granting of Share Unit Awards hereunder in accordance
with any such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)  ***No Right to Continued Employment*** — Nothing in this Plan or in any Share Unit Award
Agreement entered into pursuant hereto shall: (i) confer upon any Grantee the right to continue in the employ or service of the Corporation or any Affiliate or the right to be entitled to any remuneration or benefits not set forth in this Plan
or a Share Unit Award Agreement; or (ii) interfere with or limit in any way the right of the Corporation or any Affiliate to terminate the Grantee's employment or service arrangement with the Corporation or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)  ***No Rights as a Shareholder*** — Until Shares have actually been issued in accordance with the
terms of this Plan, the Grantee to whom a Share Unit Award has been made shall not possess any incidents of ownership of such Shares including, for greater certainty and without limitation, the right to receive Dividends on such Shares and the right
to exercise voting rights in respect of such Shares. Such Grantee shall only be considered a Shareholder in respect of such Shares when such issuance has been entered on the records of the duly authorized transfer agent of the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)  ***No Liability*** – The Corporation shall not be liable to any Grantee for any loss resulting
from a decline in the market value of any Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)  ***Expenses*** – Other than pursuant to Section 8, all expenses in connection with the Plan
shall be borne by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)  ***Grantee Information*** – Each Grantee shall provide the Corporation with all information
(including personal information) required by the Corporation in order to administer the Plan. Each Grantee acknowledges that information required by the Corporation in order to administer the Plan may be disclosed to the Board or its appointed
administrator and other third parties in connection with the administration of the Plan. Each Grantee consents to such disclosure and authorizes the Corporation to make such disclosure on the Grantee's behalf.

**12.** **Governing Law** 

This Plan shall be governed by and construed in accordance with the laws in force in the Province of Alberta.

**13.** **Invalidity** 

If any provision of this Plan or part hereof is determined to be void or unenforceable in whole or in part, such determination shall not affect the validity or enforcement of any other provision or part thereof.

**14.** **Effective Date** 

This Plan is effective as of September 24, 2009, except for the amendments to this Plan made as of January 1, 2011, March 6, 2014, March 11, 2015, March 9, 2016, June 26, 2017 and July 30, 2020 which are effective as of such dates.

## Exhibit 4.3

**Exhibit 4.3** 

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| | |
|:---|:---|
| <br> **OBSIDIAN ENERGY POLICIES**<br> **EMPLOYEE SAVINGS PLANS**<br> **Equity and Cash Components**<br>**Approved by: President and Chief Executive Officer**<br> **Dated: Effective October 31, 2018** | ![LOGO](g948515g1003081210245.jpg) |

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**Purpose of Plan** 

The purpose of the Employee Retirement / Savings Plan – Equity and Cash Component (the "**Plan**") is to provide a means by which full-time and part-time employees ("**Employees**") of Obsidian Energy Ltd. ("**Obsidian Energy**") and its affiliates can (i) save for their retirement and (ii) develop the interest of the Employees in the growth and development of Obsidian Energy and its affiliates by providing them with the opportunity to acquire an increased proprietary interest in Obsidian Energy through the purchase of common shares of Obsidian Energy ("**Common Shares**").

**Eligibility and Contribution** 

Any Employee may contribute not less than 1% of their base annual salary to this Plan, and not more than 10% of their base annual salary to the Savings Plans. Any contributions made to this Plan by an Employee are referred to herein as the "**Employee's Contribution**". For each $1.00 contribution to the Savings Plans by an Employee, Obsidian Energy will contribute $1.25 on behalf of the Employee to a maximum of 12.5% of the Employee's annual base salary. Any matching contributions made to this Plan by Obsidian Energy are referred to herein as "**Obsidian Energy's Contribution**". Effective January 1, 2019, Obsidian Energy's contribution will be $1.00 to a maximum of 10% of the Employee's annual base salary.

**Employee Election** 

Employees may elect up to a maximum of four (4) times per calendar year as to the percentage of their salary they wish to contribute to the Plan. Following the making of any such election, this amount will be deducted from the Employee's pay cheque on the next available pay period and all future pay periods until another election is made.

**Contribution to the Cash Fund Account** 

Where elected, each of the Employee's Contribution and Obsidian Energy's Contribution in each calendar month will be deposited in an investment vehicle designated by Obsidian Energy such as an investment savings account or money market fund (the "Cash Fund Account") to be administered by Obsidian Energy or an agent designated by Obsidian Energy. Any amounts directed to the Cash Fund Account will be deposited to the Cash Fund Account in the month following such contribution.

Any fees or other ancillary expenses relating to the contributions directed to the Cash Fund Account under this Plan shall be paid by Obsidian Energy.

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Obsidian Energy Policies Employee Savings Plans

**Acquisition of Common Shares** 

Where elected, each of the Employee's Contribution and Obsidian Energy's Contribution in each calendar month will be used to acquire Common Shares. The Common Shares will be acquired through open market purchases of Common Shares on the Toronto Stock Exchange (the "**TSX**") as soon as is reasonably practicable after the end of that calendar month. Common Shares will be purchased by an independent trustee or other purchasing agent (a "**Trustee**") in accordance with all applicable laws (domestic or foreign), all regulations, rules, policies, rulings, notices, orders or other instruments promulgated thereunder, and all applicable stock exchange rules and policies (including the rules and policies of the TSX) (collectively, "**Applicable Laws**"). The Trustee shall be deemed to be independent if the Trustee complies with the independence rules of the TSX as in effect from time to time. As at the date hereof, the rules of the TSX provide that a Trustee is deemed to be non-independent where: (i) the Trustee (or one of the Trustees) is an employee, director, associate or affiliate of a listed issuer; or (ii) the listed issuer, directly or indirectly, has control over the time, price, amount and manner of purchases or the choice of the broker through which the purchases are to be made; provided that the listed issuer is not considered to have control where the purchase is made on the specific instructions of the Employee who will be the beneficial owner of the securities purchased.

Any fees or other ancillary expenses relating to the purchase of Common Shares under this Plan shall be paid by Obsidian Energy. The obligation of Obsidian Energy to cause the Trustee to purchase Common Shares in accordance with the terms of this Plan is subject to compliance with all Applicable Laws.

**Vesting** 

Obsidian Energy's Contributions shall vest to each Employee from time to time on the last day of the payroll period following such contribution. If an Employee's employment with Obsidian Energy or an affiliate thereof is terminated for any reason (whether voluntary or involuntary, and including by reason of death) (a "**Termination Event**") before the end of any such payroll period, unless determined otherwise by the Board of Directors (the "**Board**"), the Employee's Contributions for such payroll period shall be matched by Obsidian Energy's Contributions notwithstanding such Termination Event, and Obsidian Energy's Contributions will vest to the Employee at the end of the payroll period following such Termination Event.

All investments made as a result of contributions to the Savings Plans (both employee and employer contributions) are unrestricted and can be redeemed at any time following the monthly contribution load to AST.

Obsidian Energy will pay for up to four eligible transactions per year. Employees can make additional transactions at their own expense.

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Obsidian Energy Policies Employee Savings Plans

Notwithstanding the foregoing or anything else contained in the Plan to the contrary, if an Employee voluntarily leaves Obsidian Energy, or is terminated for a reason other than by death, the Employee must remove all Common Shares and cash (if any) from the account maintained for the benefit of the Employee under the Plan not later than the 90th day following the Employee's voluntary departure or termination. In the event that the Employee fails to comply with the aforementioned requirement, subject to compliance with all applicable laws, rules and regulations of any governmental authority or other regulatory authority or entity having jurisdiction (including without limitation the trustee of any registered account), the Employee shall be deemed to have authorized Obsidian Energy, the Trustee, or any other agent of Obsidian Energy to close the Employee's account and to deliver certificates representing all Common Shares held in such Employee's account, together with payment of all amounts of cash contained in such Employee's account (if any), to the Employee in such manner as Obsidian Energy shall deem appropriate, in its sole discretion.

In the event of the death of an Employee, all of the Common Shares and any cash contained in the Employee's account maintained under the Plan will be immediately released. Obsidian Energy may permit the Trustee to effect an immediate transfer of Common Shares to an Employee's registered retirement savings plan or tax-free savings account.

**Miscellaneous** 

Obsidian Energy may, in its sole discretion, impose such limitations on the participation of Employees in the Plan as it deems appropriate from time to time. Directors of Obsidian Energy who are not also employees of Obsidian Energy shall not be entitled to participate in the Plan.

**Amendments and Termination** 

Obsidian Energy retains the right, by resolution of the Board, to amend from time to time or to terminate the terms and conditions of this Plan. Notwithstanding the foregoing, any amendment or termination of this Plan shall take effect only with respect to Employee's Contributions and Obsidian Energy's Contributions (and any Common Shares purchased with such contributions (including Common Shares purchased therewith) paid on such Common Shares (collectively, "**Plan Benefits**")) made after the effective date of such amendment or termination; provided, however, that any such amendment or termination may apply to any outstanding Plan Benefits in any one of the following circumstances:

(i) if, in the opinion of the Board (in its sole and absolute discretion), such amendment does not adversely alter
or impair such Plan Benefits; or

(ii) if Obsidian Energy and an Employee in possession of Plan Benefits agree in writing to such amendment.

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Obsidian Energy Policies Employee Savings Plans

Taxes

Obsidian Energy shall have the power and the right to deduct or withhold, or require an Employee to remit to Obsidian Energy, the required amount to satisfy, in whole or in part, federal, provincial, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. With respect to required withholding, Obsidian Energy shall have the irrevocable right to (and the Employee consents to) Obsidian Energy setting off any amounts required to be withheld, in whole or in part, against amounts otherwise owing by Obsidian Energy to such Employee (whether arising pursuant to the Employee's relationship as an officer or employee of Obsidian Energy or as a result of the Employee providing services on an ongoing basis to Obsidian Energy or otherwise), or may make such other arrangements as are satisfactory to the Employee and Obsidian Energy. Any reference in this Plan to Obsidian Energy's Contributions or a payment of cash is expressly subject to this paragraph.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY LTD.** | **OBSIDIAN ENERGY LTD.** |
| Per: | /s/ David French |
|  | David French |

---

## Exhibit 5.1

**Exhibit 5.1**![LOGO](g948515g1004024428924.jpg)

October 7, 2025

**Obsidian Energy Ltd.** 

Dear Sirs/Mesdames:

---

| | |
|:---|:---|
| **Re:** | **Obsidian Energy Ltd. – Form S-8 Registration Statement**  |

---

We have acted as Canadian counsel to Obsidian Energy Ltd., a corporation existing under the laws of the Province of Alberta (the "**Corporation**"), in connection with the Corporation's registration statement on Form S-8, dated October 7, 2025, including all amendments and supplements thereto (the "**Registration Statement**"), as filed with the U.S. Securities and Exchange Commission (the "**SEC**") under the United States *Securities Act of 1933*, as amended to date (the "**Act**").

The Registration Statement relates to the registration of an aggregate of up to 1,228,400 common shares of the Corporation ("**Common Shares**"), consisting of: (i) up to 471,300 Common Shares ("**Primary Option Shares**") issuable pursuant to future grants of options to purchase Common Shares ("**Options**") under the Corporation's Stock Option Plan, amended and restated as of July 30, 2020 (the "**Option Plan**"); (ii) up to 707,100 Common Shares ("**Primary RPSU Shares**") issuable or deliverable pursuant to future grants of awards ("**Share Unit Awards**") under the Corporation's Restricted and Performance Share Unit Plan, amended and restated as of July 30, 2020 (the "**RPSU Plan**"); and (iii) up to 50,000 Common Shares ("**Primary ERSP Shares**", and together with the Primary Option Shares and the Primary RPSU Shares, the "**Primary Shares**") deliverable pursuant to the Corporation's Employee Retirement / Savings Plan – Equity and Cash Component, dated effective October 31, 2018 (the "**ERSP**", and together with the Option Plan and the RPSU Plan, the "**Plans**").

The Registration Statement also relates to the registration for resale from time to time of up to 1,304,806 Common Shares (the "**Resale Shares**") by or on behalf of the selling securityholder or his permitted transferees described in the prospectus included in the Registration Statement (the "**Reoffer Prospectus**"), consisting of: (i) 188,683 Common Shares previously issued on the exercise of Options (the "**Issued Resale Option Shares**"); (ii) 15,923 Common Shares previously delivered pursuant to the ERSP (the "**Issued Resale ERSP Shares**", and together with the Issued Resale Option Shares, the "**Issued Resale Shares**"); (iii) up to 310,600 Common Shares that may be issued on the exercise of certain Options previously granted pursuant to the Option Plan (the "**Unissued Resale Option Shares**", and together with the Issued Resale Option Shares, the "**Resale Option Shares**"); and (iv) up to 789,600 Common Shares that may be issued or delivered on the settlement of Share Unit Awards previously granted pursuant to the RPSU Plan (the "**Unissued Resale RPSU Shares**", and together with the Unissued Resale Option Shares, the "**Unissued Resale Shares**").

We are furnishing this opinion as Exhibit 5.1 to the Registration Statement.

**Qualifications, Assumptions and Reliances** 

For the purpose of the opinions herein, in connection with certain factual matters, we have relied, in part, upon the minute books of the Corporation and a certificate of an officer of the Corporation dated the date hereof (the "**Officer's Certificate**").

The use herein of the phrase "fully paid and non-assessable" in respect of the Common Shares means that the holder of such Common Shares will not, after the issuance or delivery to them of such Common Shares, be liable to pay further amounts to the Corporation in respect of the issue price payable for such Common Shares. No opinion is expressed as to the actual receipt by the Corporation of the consideration for the issuance of such Common Shares or as to the adequacy of any consideration received.

![LOGO](g948515g1004022110940.jpg)

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Burnet, Duckworth & Palmer LLP October 7, 2025 <br> Page 2

We have also assumed, for the purposes of the opinions expressed herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the genuineness and authenticity of all signatures and the conformity to the originals of all copies of
documents (whether or not certified) examined by us and the authenticity and completeness of the originals of documents from which such copies were taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the accuracy and completeness of all factual representations made in the Registration Statement (including the
Reoffer Prospectus contained therein) and other documents reviewed by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that all resolutions contained in the minute books of the Corporation were approved by the requisite majority
of the directors of the Corporation, remain in full force and effect, and have not been and will not be rescinded or amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that we have been provided with true and correct copies of each of the Plans, and that the Plans provided to us
have not been amended, supplemented or modified in any manner, whether by written or oral agreement, by conduct of the parties thereto, or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) that insofar as any obligation under any of the Plans is to be performed in any jurisdiction outside of the
Province of Alberta, its performance will not be illegal or unenforceable by virtue of the laws of that other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) that all Primary Option Shares and Resale Option Shares issued or issuable pursuant to the Option Plan and any
applicable Option Agreement (as defined in the Option Plan) have been or will be issued pursuant to Options duly granted under the Option Plan by the board of directors of the Corporation (the "**Board**") or a committee of the Board
(a "**Committee**") at such times, to such persons and for such consideration as was or will be approved by the Board or a Committee or pursuant to a delegation of authority granted by the Board or a Committee, all in accordance with
the terms of the Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) that all Primary RPSU Shares and Unissued Resale RPSU Shares issuable or deliverable pursuant to the RPSU Plan
and any applicable Share Unit Award Agreement (as defined in the RPSU Plan) will be issued or delivered pursuant to Share Unit Awards duly granted under the RPSU Plan by the Board or a Committee at such times, to such persons and for such
consideration as was or will be approved by the Board or a Committee or pursuant to a delegation of authority granted by the Board or a Committee, all in accordance with the terms of the RPSU Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) that all Primary ERSP Shares and Issued Resale ERSP Shares delivered or deliverable pursuant to the ERSP have
been or will be delivered in accordance with the terms of the ERSP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that all Primary Shares and Resale Shares have been or will be issued by the Corporation pursuant to a
resolution of the Board that has been approved by the requisite majority of the directors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) that all required consideration for the Primary Shares and the Resale Shares has been or will be fully paid in
money or in property (other than a promissory note or promise to pay) or past service that was not or will not be less in value than the fair equivalent of the money that the Corporation would have received if such Common Shares had been issued for
money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) that all required filings have been or will be made with the NYSE American, the Toronto Stock Exchange and all
relevant securities regulatory authorities;

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Burnet, Duckworth & Palmer LLP October 7, 2025 <br> Page 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the capacity, power and authority of all parties other than the Corporation to enter into and perform their
obligations under any and all documents entered into by such parties in connection with the issuance or delivery of the Primary Shares and the Resale Shares, and the due execution and delivery thereof by each party thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) that the Registration Statement (including the Reoffer Prospectus contained therein) filed with the SEC will be
in substantially the same form as that examined by us for purposes of this opinion.

Other than the review of the Officer's Certificate, the Registration Statement, each of the Plans and the minute books of the Corporation we have not undertaken any special or independent investigation to determine the existence or absence of any facts or circumstances relating to the Corporation. No inference as to our knowledge of such facts and circumstances should be drawn merely from our representation of the Corporation.

**Applicable Law** 

We are qualified to practice law in the Province of Alberta and our opinion herein is restricted to the laws of the Province of Alberta and the federal laws of Canada applicable therein as at the date hereof.

**Opinion** 

Based upon and subject to the assumptions, limitations and qualifications expressed herein, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. when the Primary Shares have been issued or delivered in accordance with: (i) the terms and conditions of
the applicable Plan; (ii) the terms and conditions of any applicable Option Agreement or Share Unit Award Agreement; and (iii) the Registration Statement; such Primary Shares will be validly issued as fully paid and non-assessable Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Issued Resale Shares have been validly issued as fully paid and non-assessable Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. when the Unissued Resale Shares have been issued or delivered in accordance with: (i) the terms and
conditions of the Option Plan or the RPSU Plan (as applicable); (ii) the terms and conditions of any applicable Option Agreement or Share Unit Award Agreement; and (iii) the Registration Statement; such Unissued Resale Shares will be validly
issued as fully paid and non-assessable Common Shares.

This opinion is rendered solely in connection with the Registration Statement and is expressly limited to the matters set forth above and we render no opinion, whether by implication or otherwise, as to any other matters relating to the Corporation, the Registration Statement, the Plans, Options, Share Unit Awards or Common Shares.

The opinions are given as at the date hereof and we disclaim any obligation or responsibility to: (a) update this opinion; (b) take into account or inform the addressees or any other person of any changes in law, facts or other developments subsequent to this date that do or may affect the opinions we express; or (c) advise the addressees or any other person of any other change in any matter addressed in this opinion. Our opinions do not take into account any proposed rules, policies or legislative changes that may come into force following the date hereof.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement, or any amendment pursuant to Rule 462 under the Act, and to the reference to our firm under the heading "*Legal Matters*" in the Reoffer Prospectus, or any amendment pursuant to Rule 462 under the Act. In giving this consent, we do not hereby agree that we come within the category of persons whose consent is required by the Act.

Yours truly,

/s/ Burnet, Duckworth & Palmer LLP

Burnet, Duckworth & Palmer LLP

## Exhibit 23.1

**Exhibit 23.1** 

**Consent of Independent Registered Public Accounting Firm** 

The Board of Directors of Obsidian Energy Ltd.

We consent to the use of our reports dated February 24, 2025, with respect to the consolidated financial statements of Obsidian Energy Ltd. and subsidiaries, which comprise the consolidated balance sheets as of December 31, 2024 and 2023, the related consolidated statements of income (loss), cash flows, and changes in shareholders' equity for each of the years then ended, and the related notes and the effectiveness of internal control over financial reporting, incorporated herein by reference in the registration statement on Form S-8 dated October 7, 2025 and to the reference to our firm under the heading "Experts" in the prospectus.

/s/ KPMG LLP

Chartered Professional Accountants

October 7, 2025

Calgary, Canada

## Exhibit 23.2

**Exhibit 23.2**![LOGO](g948515g1003081210386.jpg)

October 7, 2025

**Re: Consent of Independent Petroleum Consultant** 

We refer to our report dated January 31, 2025, entitled "Reserves Assessment and Evaluation of Canadian Oil and Gas Properties of Obsidian Energy Ltd. ("**Obsidian Energy**") (As of December 31, 2024)" (the "**GLJ Report**").

We hereby consent to the use of our name and to the inclusion or incorporation by reference of, reference to, and use of information derived from, the GLJ Report in Obsidian Energy's Registration Statement on Form S-8.

---

| |
|:---|
|  Yours truly, |
|  **GLJ LTD.** |
|  /s/ Scott M. Quinell |
|  Scott M. Quinell, P. Eng |
|  Vice President, Corporate Evaluations |

---

1920, 401 – 9<sup>th</sup> Ave SW Calgary, AB, Canada T2P 3C5 \| tel 403-266-9500 \| gljpc.com

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-8**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**OBSIDIAN ENERGY LTD.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Security Type**  | **Security Class Title**  | **Fee Calculation Rule**  | **Amount Registered**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| 1 | Equity | Common Shares, no par value per share | Other | 471300 | $3064628.25 | 0.0001381 | $423.23 |
| 2 | Equity | Common Shares, no par value per share | Other | 707100 | $4597917.75 | 0.0001381 | $634.97 |
| 3 | Equity | Common Shares, no par value per share | Other | 50000 | $325125.00 | 0.0001381 | $44.90 |
| 4 | Equity | Common Shares, no par value per share | Other | 1304806 | $8484501.02 | 0.0001381 | $1171.71 |
| Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | $16472172.02  |  | $2274.81  |
| Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
| Net Fee Due:  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  | $2274.81  |

---

 **Offering Note** <br>

<sup>1</sup> Represents 471,300 common shares, no par value, of Obsidian Energy Ltd. (the "Common Shares") issuable under the Obsidian Energy Ltd. Stock Option Plan, amended and restated as of July 30, 2020 (the "Stock Option Plan"). The proposed maximum price per Common Share is estimated solely for purposes of calculating the registration fee pursuant to Rules 457(c) and (h) of the Securities Act of 1933, as amended (the "Securities Act") on the basis of the average of the high and low prices for the Common Shares as reported on the NYSE American on October 1, 2025. Pursuant to Rule 416(a) under the Securities Act, this registration statement on Form S-8 covers any additional Common Shares that become issuable under the Stock Option Plan by reason of any stock dividend, stock split, recapitalization or similar transaction effected without Obsidian Energy Ltd.'s receipt of consideration which would increase the number of outstanding Common Shares.

<sup>2</sup> Represents 707,100 Common Shares issuable under the Restricted and Performance Share Unit Plan, amended and restated as of July 30, 2020 (the "Share Unit Plan"). The proposed maximum price per Common Share is estimated solely for purposes of calculating the registration fee pursuant to Rules 457(c) and (h) of the Securities Act on the basis of the average of the high and low prices for the Common Shares as reported on the NYSE American on October 1, 2025. Pursuant to Rule 416(a) under the Securities Act, this registration statement on Form S-8 covers any additional Common Shares that become issuable under the Share Unit Plan by reason of any stock dividend, stock split, recapitalization or similar transaction effected without Obsidian Energy Ltd.'s receipt of consideration which would increase the number of outstanding Common Shares.

<sup>3</sup> Represents 50,000 Common Shares issuable under the Employee Retirement / Savings Plan - Equity and Cash Component, effective October 31, 2018 (the "Employee Plan"). The proposed maximum price per Common Share is estimated solely for purposes of calculating the registration fee pursuant to Rules 457(c) and (h) of the Securities Act on the basis of the average of the high and low prices for the Common Shares as reported on the NYSE American on October 1, 2025. Pursuant to Rule 416(a) under the Securities Act, this registration statement on Form S-8 covers any additional Common Shares that become issuable under the Employee Plan by reason of any stock dividend, stock split, recapitalization or similar transaction effected without Obsidian Energy Ltd.'s receipt of consideration which would increase the number of outstanding Common Shares.

<sup>4</sup> Represents 1,304,806 Common Shares that may be deemed to be "restricted securities" and/or "control securities" under the Securities Act and the rules and regulations promulgated thereunder that were issued or are issuable to the selling securityholder identified in this registration statement on Form S-8 (the "Re-Sale Shares"). The proposed maximum price per Re-Sale Share is estimated solely for purposes of calculating the registration fee pursuant to Rules 457(c) and (h) of the Securities Act on the basis of the average of the high and low prices for the Common Shares as reported on the NYSE American on October 1, 2025. Pursuant to Rule 416(a) under the Securities Act, this registration statement on Form S-8 covers any additional Common Shares that become issuable to the selling securityholder by reason of any stock dividend, stock split, recapitalization or similar transaction effected without Obsidian Energy Ltd.'s receipt of consideration which would increase the number of outstanding Common Shares.

---

| | |
|:---|:---|
| | |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---