Obsidian Energy has metamorphosed from three other names to be what it is today. It has its base in Canada. The company produces natural gas and oil with its base being in Calgary, Alberta in Canada. Obsidian used to be among the largest companies in Canada’s Toronto Stock Exchange under the S&P sector. Between 2005 to 2011 it was a CANROY (Canadian Royalty Trust) had about $9.5 billion in U.S dollars. Things went downhill in 2014 after the price of crude oil fell sharply, leading it into financial plus operational difficulties. This resulted in the company selling the bulk of its assets in an attempt to reduce its debts. Obsidian also did significant restructuring.
The company’s gas fields in Alberta are within Western Canada’s Sedimentary Basin. This basin has some of the world’s largest reserves of petroleum. Production is done in the Pembina Cardium and Alberta Viking. The other production center is in the Peace River Oil Sands. Its forecasted production for 2017 was placed at 31,000 barrels a day.
Change from Penn West Petroleum to Obsidian Energy
Shareholders voted to change the company name to Obsidian Energy. This was after the company managed to survive accounting scandals, sharp fall in its core commodity and a debt crisis that almost crippled it. The accounting scandal occurred after the company classified its expenses in its financial reports. This forced it to restate the same reports for 2012 through to 2014 financial first quarter. This led to class-action suits from investors. The suits were later settled. From its aggressive sale of numerous assets held by the company, it reduced its debt to $384 million in 2017.This was a huge drop from the $3billion it owed debtors in 2013. The resized and renamed company had a forecast of producing 28,000 barrels of oil per day in 2017, down from 2013’s 135,000 barrels. It also cut down its workforce from 1,415, to only 407 employees. It still remains to be seen if the name change will give the company the much-needed morale boost. Read This Article for related information.