13D Filing: FrontFour Capital Group and Penn West Petroleum Ltd. (PWE)

The following constitutes
the Schedule 13D filed by the undersigned (the “Schedule 13D”).

Item 1.

Security and Issuer.

This statement relates
to the common shares (the “Shares”) of Obsidian Energy Ltd., a company governed by the laws of the Province of Alberta,
Canada (the “Issuer”). The address of the principal executive offices of the Issuer is Suite 200, 207 – 9^th
Avenue SW, Calgary, Alberta T2P 1K3 Canada.

Item 2.

Identity and Background.

(a)       This
statement is filed by:

(i)

FrontFour Capital Group LLC, a limited liability company formed under the laws of the State of Delaware (“FrontFour Capital”);

(ii)

FrontFour Master Fund, Ltd., an exempted company formed under the laws of the Cayman Islands (the “Master Fund”);

(iii)

FrontFour Opportunity Fund, a mutual fund trust formed under the laws of British Columbia, Canada (the “Canadian Fund”);

(iv)

FrontFour Capital Corp., a corporation formed under the laws of British Columbia, Canada (“FrontFour Corp.”);

(v)

FrontFour Energy Fund, a limited partnership formed under the laws of Ontario, Canada (the “Energy Fund”);

(vi)

FrontFour Energy GP Inc., a corporation formed under the laws of Ontario, Canada (“Energy Fund GP”);

(vii)

Stephen Loukas (“Mr. Loukas”);

(viii)

David A. Lorber (“Mr. Lorber”); and

(ix)

Zachary George (“Mr. George”).

Each of the foregoing
is referred to as a “Reporting Person” and collectively as the “Reporting Persons.” Each of the Reporting
Persons is party to that certain Joint Filing Agreement, as further described in Item 6. Accordingly, the Reporting Persons are
hereby filing a joint Schedule 13D.

(b)       The
principal business address of each of FrontFour Capital, FrontFour Corp., the Canadian Fund and Messrs. Loukas, Lorber and George
is 35 Mason Street, 4^th Floor, Greenwich, Connecticut 06830. The principal business address of the Master Fund is c/o
Intertrust Cayman, 190 Elgin Avenue, George Town, Grand Cayman KY1-9007, Cayman Islands. The principal business address of each
of the Energy Fund and Energy Fund GP is 200 Bay Street, Suite 3800, Toronto, Ontario, M5J 2Z4 Canada. The directors, executive
officers and principals of each of FrontFour Capital, the Master Fund, the Canadian Fund, FrontFour Corp. and Energy Fund GP and
their principal occupations and business addresses are set forth on Schedule A attached hereto and are incorporated by
reference in this Item 2. To the best of the Reporting Persons’ knowledge, except as otherwise set forth herein, none of
the persons listed on Schedule A beneficially owns any securities of the Issuer or is a party to any contract, agreement
or understanding required to be disclosed herein.