Penn West Petroleum Transformation to Obsidian Energy

Obsidian Energy is a midway-sized gas and oil producer that has a portfolio which is well balanced containing assets of good quality that produce approximately 30,000 barrels per day. The organization, together with these assets, offers a good and efficient environment to deliver a spirit of entrepreneurship and core results that will give it a chance to be successful in the oil and gas industry. Obsidian Energy works on the basis of inexorable passion for the industry at large, discipline and bold accountability for the community, the company’s partners, and its shareholders. The company, however, hasn’t always had the name Obsidian Energy Ltd. Formerly; it was known as Penn West Petroleum Ltd until there was a vote of 92% by the shareholders to change the name of the organization.

 

This change of names occurred on June 26th, 2016 to acknowledge that it is for a fact true that the company has, over the years, gone through meaningful changes that have had a huge impact to every perspective of the business which has consequently to the redefinition and growth of the company today. According to David French, the CEO of Obsidian Energy, they chose this name to signify that the organization will be sharpened- Obsidian is a volcanic glass that can easily be honed and sharpened. The organization now, having redefined itself, has an aim of spending budgets that are very close to the price of gas and oil. It plans to achieve this by seeking for essential growth in the next three years. (Go To This Page for related information.)

 

The previous renowned Penn West has, over the past four years, has had high debts. That it has survived not to add that it has also had scandals concerning accounting that led to lawsuits by some investors. Most of these lawsuits were settled last year. The group’s net debt was reduced to 384 million dollars as of March 31st, 2017. This is a good improvement because it had almost 3 billion dollars of debt late 2013. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. The organization can now be described as a much smaller company with the number of employees reduced from 1,400 to 300 hence cutting the production from 135,000 barrels per day to 28,000 barrels per day.

 

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