Obsidian Energy was founded in the year of 1979 in Alberta, Canada. Serving only in parts of Canada. It really took off in January of 2008, this was the time that the company really blossomed and started churning profit until. The scandals took place. Before it was known as Obsidian Energy, it was named Penn West Petroleum. In 2014 the price for energy went down and things looked bleak for the company, they faced a lot of difficulties but in the end pulled through. David L. French is the CEO of around 300 employees.
Obsidian Energy is a medium sized company that is in charge of pumping out about 30,000 BOE a day; of gas and oil. Claims have been made that after the change from Penn West the company came back stronger and more efficient both inside the company and outside to the customers.
Surviving debt crisis, scandal and a few other things was what triggered the name change. After the name change Obsidian hopes to expand and grow over the next three years. They’re going to use the tactic of keeping a sharp eye on the oil and gas prices. Unfortunately, another part of the name change was downsizing from over 1,400 employees to around 400, however if things pick up they will need to expand more once again.
Currently, the company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).
This goes to show that even if you’re going through hard times you can still come and fight back. Things may be rough for a while for Obsidian Energy but they’re not going to stop fighting and caring for their customers. Reports are steady claiming that this company is being smarter and more efficient than before. Here’s to hopes to the company’s wellbeing and striving into 2018. New name, new strategies and a new attitude seem to be what’s working so far. Go To This Page for additional information.
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.