CALGARY, Sept. 15, 2017 /PRNewswire/ - OBSIDIAN
ENERGY LTD. (TSX/NYSE - OBE) ("Obsidian Energy",
"we", "us" or "our") announces that it
received notification on September 14,
2017 from the New York Stock Exchange (the "NYSE")
that Obsidian Energy is no longer in compliance with one of the
NYSE's continued listing standards applicable to Obsidian Energy
because the average closing price of Obsidian Energy's common stock
was less than US$1.00 per share over
a consecutive 30 trading day period. As of September 12, 2017, the average closing price of
Obsidian Energy's common stock over the preceding consecutive 30
trading day period was US$0.99 per
share. The issuance by the NYSE of the notification is not
discretionary and is sent automatically when a listed company's
stock price falls below the NYSE's minimum price listing
standard.
Non-compliance with the NYSE's price listing standard does not
affect Obsidian Energy's business operations or its reporting
requirements to the U.S. Securities and Exchange Commission (the
"SEC"), nor does it breach or cause an event of default
under any of Obsidian Energy's agreements with its lenders.
Obsidian Energy continues to be in compliance with the terms of all
of those agreements. In addition, non-compliance with the
NYSE price listing standard does not affect the continued listing
and trading of Obsidian Energy's common shares on the Toronto Stock
Exchange (the "TSX").
Under the NYSE's rules, Obsidian Energy can avoid delisting if,
within six months from the date of the NYSE notification, its
common stock has a closing price on the last trading day of any
calendar month and a concurrent 30 trading day average closing
price of at least US$1.00 per
share. Additionally, Obsidian Energy could cure the price
condition by advising the NYSE of its intention to consolidate its
outstanding equity float to a level more suitable to the current
size of the company, which would require Obsidian Energy to obtain
shareholder approval no later than our next annual general meeting.
The price condition following such a consolidation is cured if the
common stock price promptly exceeds US$1.00 and remains above that level for at least
the following 30 trading days.
If at the expiration of the applicable cure period Obsidian
Energy has not regained compliance, or Obsidian Energy has not
obtained shareholder approval by the next annual meeting to
consolidate its shares outstanding, the NYSE will commence
suspension and delisting procedures. Management of Obsidian Energy
will actively monitor the stock price and evaluate all available
options in order to regain compliance with the NYSE's price listing
standard within the applicable cure period.
Obsidian Energy intends to notify the NYSE within 10 business
days from the date of the NYSE notification that it intends to cure
this price deficiency and return to compliance with the NYSE's
price listing standard prior to the expiration of the applicable
cure period or by the next annual general meeting.
Obsidian Energy's common stock will continue to be listed and
traded on the NYSE during the applicable cure period, subject to
compliance with the NYSE's other continued listing standards, under
the symbol "OBE", but the NYSE will assign a ".BC" indicator to the
symbol to denote that Obsidian Energy is below the NYSE's price
listing standard. This indicator will be removed at such time
as Obsidian Energy is deemed compliant with the NYSE's price
listing standard.
Forward-Looking Statements
Certain statements contained in this document constitute
forward-looking statements or information (collectively
"forward-looking statements") within the meaning of the "safe
harbor" provisions of applicable securities legislation.
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", "pursue" and similar words suggesting future events or
future performance. In particular, this document contains
forward-looking statements pertaining to, without limitation, that
non-compliance with the NYSE's price listing standard does not
affect Obsidian Energy's business operations or its reporting
requirements to the SEC and does not breach or cause an event of
default under any of Obsidian Energy's agreements with its lenders,
Obsidian Energy's continued compliance with the terms of all of
those agreements, Obsidian Energy's ability to regain compliance
with the NYSE's price listing standard within the applicable cure
period, that management will actively monitor the stock price and
evaluate all available options in order to regain compliance with
the NYSE's price listing standard within the applicable cure
period, Obsidian Energy's intention to notify the NYSE within 10
business days that it intends to cure this price deficiency and
return to compliance with the NYSE's price listing standard prior
to the expiration of the applicable cure period, and the continued
listing and trading of Obsidian Energy's common shares on the
TSX.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations and
assumptions will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking statements included in this
document, 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 will not occur, 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.
Important factors that could cause actual results and events to
differ from those described in the forward‑looking statements can
be found in our public filings (including our Annual Information
Form) available in Canada at
www.sedar.com and in the United
States at www.sec.gov. Readers are cautioned that this
list of risk factors should not be construed as
exhaustive.
The forward-looking statements contained in this document speak
only as of the date of this document. 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 in this document are
expressly qualified by this cautionary statement.
SOURCE Obsidian Energy Ltd.