The Penn West Corporation Ltd. changed its name to the Penn West Energy Trust, then Penn West Petroleum and now its shareholders have approved the name change to Obsidian Energy Ltd. as of June 2017. The name, “Obsidian” was chosen because obsidian is a volcanic glass that can be sharpened and honed.
The stock symbol was replaced with “OBE” on both the New York Stock and the Toronto Stock Exchanges. It is among the sixty largest companies on the Toronto Stock Exchange. Obsidian Energy adopted a new beginning in many ways including embracing new operating principles: Building and protecting enterprise value by using technical and commercial decision-making, employing the relentless pursuit of innovation and forward thinking, and being a company that is accountable and uses transparent efforts with its shareholders, its partners and the communities in which it operates.
Obsidian Energy is a medium sized Canadian Company producing oil and natural gas. Its headquarters are located in Calgary, Alberta. Obsidian Energy’s oil fields are located in Alberta, along the Western Canadian Sedimentary Basin. This region is one of the world’s largest petroleum reserves. Obsidian’s oil production comes from three key areas in Alberta: the Alberta Viking, the Pembina Cardium and the Peace River Oil Sands.
Committed to keeping the impact on the environment to a minimum, Obsidian works to ensure its operations are safe for the neighborhoods they operate in. Their environmental programs are setup to meet or exceed the environmental regulations and conserve resources. Obsidian Energy operates each energy site with a few major concepts in the forefront of their minds. They keep accurate stakeholder communication accessible, employ good reclamation practices and responsible site abandonment techniques. View More Information Here.
Obsidian Energy has made some drastic changes since it hit a debt level of $3 billion in 2013. Recently its debt has been lowered to a net debt of $384 million. It has further reduced its overhead by reducing its employee count from 1400 down to 300. It also limited its daily oil production from 135,000 barrels per day to 28,000. Today Obsidian Energy is leaner and stronger with a more focused approach to achieve significant growth in the future.
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.