Obsidian Energy Ltd is a medium-sized oil and gas producing company in Calgary Alberta along the sedimentary basin of western Canada. The company was earlier the Penn west exploration, Penn west energy Trust, and Penn West petroleum until June 26th, 2017. It was among the sixty largest companies on the stock exchange of Toronto and became a Canadian Royalty Trust from 2005 to 2011 attaining its market capitalization of US $9.5 billion approximately. The core sources of production zones comprise the Alberta Viking, Peace River oil sands, and the Pembina Cardium.
Changing the name to Obsidian Energy was approved by the stakeholders of Penn West. The CEO, Dave French, revealed that the reason behind choosing the name was because obsidian was a volcanic gas, naturally occurring and could be easily ‘sharpened and honed.’ For belonging to Canadian royalty trusts, the company’s dividends were not taxed at a consistent dividend rate and as a return on its capital but not on investments hence an advantage even to the United States. The government ultimately collapsed obliging the trusts to pay similar taxes as the corporations. The dividends were in the long run cut since all trusts converted to businesses. The currently obsidian in January 2011 switched to a conventional company from the Canadian royalty trusts.
The Obsidian Energy Ltd has a balanced holding of quality assets that produce roughly 30000 boes daily. The organization and its assets promote an entrepreneurial spirit needed in the business industry for exceptional entrepreneurial outcomes. The company carries out its mandate with passion, discipline and full accountability to its partners, stakeholders and the community around it. All this has been a positive turn around by the company and as result, the company is now enjoying a great period of success.
Obsidian Energy Ltd, through its community matters program, aims at positively impacting the communities in which it lives and functions. It carries out its daily operations responsibly, respectfully and openly interacting with its area residents in addressing their concerns, mitigating oil and gas operational impacts with a goal of minimizing the effects on the environment through their environmental programs.
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The Chief Executive Officer of Obsidian Energy, David French, made his remarks concerning the change of the company’s name and their next move. The renaming was the final wrap-up to the transformations that had been put into place. David insists on upholding the company’s major principles which include relentless pursuit of innovation and progress, disciplined commercial and technical decision making in protecting enterprise value, and lastly accountability and transparency in their operations. Obsidian Energy has a favorable position and prudent hedging strategies and plans to utilize its valuable assets.
The resolutions put in place have been approved by their esteemed shareholders. Obsidian Energy has its location in Alberta where it harbors both oil and gas fields. The fields are suitably situated along the Western Canadian Sedimentary Basin which prides in being the world’s biggest petroleum reserves. Major production takes place in three major points which include the Pembina Cardium, the Alberta Viking, and the Peace River oil sands. The company is an intermediate size and has a well-balanced portfolio of high valued assets.
Utilizing these available resources with the organization’s high-tech equipment offers a sufficient platform for them to deliver outstanding results. The organization is based on an entrepreneurial spirit which has played a major role in boosting their success in the evolving industry. Discipline, relentless hard work, and passion are values that all personnel at Obsidian Energy are subjected to in order to meet the demands of their partners, shareholders, and the communities they serve.
Before the name change, the company was called Penn West Petroleum Ltd. Penn West had to undergo significant reforms and changes that cut across all their business aspects. This drove them to redefine the company and make major decisions on how and where they wanted to direct its growth. With the changes put in place, the company has come out leaner, more capable, and stronger than it ever was. The new path would now be followed by Obsidian Energy, to represent a new beginning.
Obsidian Energy is committed to ensuring that they bring a positive impact not only in the industry but also with the communities they come into contact with. They have environmental programs which seek to be at par with all environmental regulations. This is made possible through resource conservation, stakeholder communication, and proper reclamation practices.
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Formerly known as the Penn West Exploration Ltd, Obsidian Energy is a medium-sized company that specializes in the production of natural oil and gas, and is located in Calgary, Alberta, Canada. For some time, Obsidian managed to emerge as one of the top sixty largest natural oil and gas producers between 2005 and 2011. In 2008, Obsidian Energy managed to reach the peak of its production by accumulating a total of US$9.5 Billion as its gross profit.
Due to the significant drop in the prices of oil that took place back in 2014, the company faced manacles of financial crisis that actually had a great impact on its performance over a short period of time. The major drop in the oil prices compelled the management to sell some of the company’s assets and even do some restructuring so that it could be able to cover the debts. The above-mentioned process took place within two years following the financial instability that Obsidian Energy underwent.
The obsidian Energy plants are situated in Alberta around the basin known as the Western Sedimentary Basin. This region is also known to be the world’s best and biggest oil reserve as compared to the ones in the Middle East. Alberta receives production from three major areas before being supplied to the market; the three regions include the Pembina Cardium, Alberta Viking, and River Oil Sands. According to reliable sources, the gross 2017 production is eluded to be 31,000 bbl on a daily basis.
Though the company faced a number of challenges that came as a result of a significant drop in the prices of oil in the world, it still managed to survive. It is, therefore, safe to conclude that the management that was regulating the duties undertaken by the company at that point did an amazing job. By carefully allocating the scarce resources that were available at that moment, the company managed to spring back to life and make some more profits that enabled it to expand its operation within the nation.
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