Obsidian Energy Plans $91M Sale of 32.7% InPlay Oil Stake

Obsidian Energy Ltd. has entered a definitive agreement to sell its entire 32.7% stake in InPlay Oil Corp. to Israel-based Delek Group Ltd. for approximately C$91.4 million ($66 million USD), with the transaction expected to close in the first half of August 2025. The sale involves 9,139,784 shares at C$10.00 per share, a premium over InPlay's recent trading price, and is part of Obsidian's strategy to monetize non-core holdings following earlier asset rationalization, including the sale of its Pembina assets. Obsidian will forfeit its remaining 20,834 restricted awards post-closing and is anticipated to use the liquidity from this sale to optimize its balance sheet and focus on high-return development areas in Western Canada. The agreement includes adjustments to the purchase price related to Competition Act filing fees and possible dividend payments. Analysts have mixed views on Obsidian's stock, noting financial challenges despite revenue growth and a strong balance sheet. This transaction reflects growing international interest in Western Canada's oil and gas sector, especially in low-cost light oil production plays.